Negative comments hurting stockmarket’s growth momentum: Salman F Rahman

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Negative comments hurting stockmarket's growth momentum: Salman F Rahman

Negative comments hurting stockmarket’s growth momentum: Salman F Rahman

The stock market is growing in the right way but some people are leaving a bad impact on it by making negative comments about the growth, said Salman F Rahman, prime minister’s adviser on private industry and investment.

Now, the benchmark index of the Dhaka Stock Exchange is rising due to the overall better position of the economy, he said.

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His comments came in an event organised by Bangladesh Merchant Banker” Association titled “The importance of financial literacy for the development of the capital market”.

If the index rises suddenly, then it is a reason of tension, Rahman said

“But our index is rising with observing corrections, but many people commented unknowingly.

Bangladesh Securities and Exchange Commission Chairman Prof Shibli Rubayat Ul Islam echoed the same saying many of responsible persons also commenting megetively on the market.

“Some people don’t realise the difference between depositors and investors. Despite that, they are commenting on the stock market which impact the market badly.”

People should know about the stock market, he added.

Stocks end flat

PBC News

The stock market ended almost flat today although most of the listed stocks fell thanks to the big paid-up capital-based companies that saved the day from a big fall.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 3 points, or 0.05 per cent, to 7,331.

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At the bourse, 75 stocks rose, 269 fell and 321 remained the same.

LafargeHolcim Bangladesh contributed to the index mostly and the DSEX rose 10 points due to the company’s rise alone. ICB contributed 5 points, and Grameenphone 3 points, according to amarstock.com.

Turnover at the premier bourse dropped 14 per cent to Tk 2,352 crore today, up from Tk 2,755 crore of the previous day.

Orion Pharmaceuticals topped the gainers’ list that rose 9.9 per cent followed by Familytex Bd, Orion Infusion, Shinepukur Ceramics, and GPH Ispat.

Stocks of LafargeHolcim Bangladesh traded mostly that worth Tk 213 crore followed by Orion Pharmaceuticals, Beximco Ltd, GPH Ispat, and LankaBangla Finance.

ICB Islamic Bank shed mostly that dropped 10 per cent followed by Shyampur Sugar Mills, Aziz Pipes, AMCL Pran, and aamra Networks.

The Chittagong Stock Exchange, however, fell today. The CASPI, the general index of the port city bourse, dropped 39 points, or 0.18 per cent, to 21,433.

At the Chattogram bourse, 70 advanced, 218 dropped and 30 remained the same among 318 traded stocks.

Inflation, Evergrande keep world shares on back foot

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World stocks were on the back foot on Monday and the dollar stayed close to one-year highs on concerns that higher inflation, supply shortages and China’s property sector problems would put global economic recovery at risk.

Stock markets slipped to 2-1/2-month lows last week, following a torrid September that saw them shed more than 4 per cent as US Treasury yields surged 20 basis points, the Federal Reserve signalled its readiness to start unwinding stimulus this year and Chinese property giant Evergrande headed for default.

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Those factors remain in play, with trading in Evergrande shares suspended, days after it missed a second set of interest payments on offshore debt.

Media reports that Evergrande would sell a stake in its property management unit for over $5 billion did little to sooth sentiment.

Asian shares weakened, led by a 2.7 per cent loss in Hong Kong while Japan’s Nikkei slipped around 1 per cent.

European bourses seesawed around flat and Wall Street futures were firmly in the red, with those for the tech-heavy Nasdaq down 0.7 per cent.

A couple of events are focusing investors’ minds. First up is Monday’s OPEC-plus meeting, which comes as crude prices hover near three-year highs of close to $80 a barrel.

Gas prices too show no sign of easing, rising to a new high of 96 euros per megawatt hour in Europe.

More important is Friday’s monthly U.S. payrolls data which a Reuters poll forecast will show 500,000 jobs added last month.

“All roads this week point to payrolls Friday, as unless there is a marked deterioration across the whole sweep of labour market indicators within the report, this will likely be the catalyst to cement the November taper,” Deutsche Bank told clients.

US economic data on Friday showed robust consumer spending and factory activity, but fears are inflation will keep accelerating, due to spiking energy prices, labour shortages and supply glitches. That could force central banks to tighten policy sooner and further than expected.

Already, the core US PCE price index, the Fed’s preferred inflation measure, increased 3.6 per cent in August from a year earlier, its biggest rise in three decades while euro zone inflation hit a 13-year high

While Fed boss Jerome Powell and other policymakers insist high inflation is transitory, Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, noted “Powell also recently starting to hedge his comments too, leading investors to suspect he, too, is worried about inflation”.

Those concerns kept a sustained bid for the dollar, which is close to one-year highs against a basket of currencies and looks set for its biggest annual rise since 2015.

The greenback eased slightly on Monday, allowing the euro bounce to $1.16145, off Thursday’s 14-month low of $1.1563. It also dipped to 111.135 yen, staying below Thursday’s 1-1/2-year high of 112.08 yen.

US bond yields too pulled away from last week’s multi-month peaks, with 10-year yields at 1.489 per cent, off Tuesday’s three-month high of 1.567 per cent.

The offshore-trade yuan meanwhile fell a quarter percent at 6.4520 as investors weighed the overall Evergrande impact. They also awaited a speech by US Trade Representative Katherine Tai on the Biden administration’s strategy for US-China trade ties.

“The biggest problem is not a default by Evergrande but the environment that has led to its downfall. Authorities are regulating housing loans and lending to property firms.

Markets are looking for a next Evergrande already,” said Kazutaka Kubo, senior economist at Okasan Securities.

“There is rising risk Evergrande’s woes will spread to the entire Chinese property sector.”

Bangladesh’s stock market is not overvalued: BSEC chairman

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Professor Shibli Rubayat Ul Islam
Bangladesh’s stock market is not overvalued because it did not soar as fast as the economy rose over the years, said Prof Shibli Rubayat Ul Islam, chairman of Bangladesh Securities and Exchange Commission (BSEC).

His comments came in a programme that the BSEC organised today to launch the World Investor Week 2021, an initiative of the International Organisation of Securities Commission.

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It was held at the BSEC’s own office in the capital.

“Some people are saying that the stock market is overvalued but they do not realise the reality of the economy and our stock market,” he said.

They made such comments seeing the rise of the benchmark index of the Dhaka Stock Exchange in the last one year, he said.

“But the stock market did not soar as fast as our gross domestic product and per capita income. They cannot be compared such a way.”

They can take into account the market’s price earnings ratio, which is still lucrative, Islam said, adding that the regulator is trying to diversify the stock market products.

“We are trying to ensure good corporate governance in the market too,” he added.

BSEC Commissioners Prof Shaikh Shamsuddin Ahmed and Prof Mizanur Rahman also spoke.

Stocks fall after five days of rise

PBC News

The stock market fell today after rising for five consecutive days, although the turnover rose at the premier bourse.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell 28 points, or 0.38 per cent, to 7,327.

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At the DSE, 48 stocks rose, 297 declined and 31 remained unchanged.

Turnover at the Dhaka bourse soared 12 per cent to Tk 2,755 crore, up from Tk 2,439 crore on the previous day.

Beximco Ltd became the top traded stock with shares worth Tk 176 crore changing hands followed by LafargeHolcim Bangladesh, Orion Pharmaceuticals, Beximco Pharmaceuticals and LankaBangla Finance.

Orion Infusion topped the gainers’ list that rose 9.82 per cent followed by Shinepukur Ceramics, Sea Pearl Sea Beach Resort & Spa, C&A Textiles, and LafargeHolcim Bangladesh.

Shurwid Industries shed mostly in the market that fell 9.64 per cent followed by ICB Islamic Bank, Mithun Knitting, GBB Power, and Dragon Sweater.

The Chattogram Stock Exchange also dropped. The CASPI, the general index of the port city bourse, declined 36 points, or 0.17 per cent, to 21,473.

Among 322 traded stocks, 66 advanced, 238 fell and 18 remained unchanged.

BSEC to sue board of Shurwid Industries

PBC News

The stock market regulator yesterday decided to file a case against the board of directors of Shurwid Industries Ltd for recommending dividends for fiscal 2018-19 in an attempt to manipulate its share prices.

The decision came in a commission meeting held at the securities exchange building in Dhaka chaired by Prof Shibli Rubayat Ul Islam, chairman of the Bangladesh Securities and Exchange Commission (BSEC).

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The PVC product manufacturer announced 10 per cent cash dividend on November 3, 2019 for the year ending on June 30, 2019.

However, the company did not pay the dividend to shareholders, prompting the BSEC to form an investigation committee.

The committee found that Shurwid Industries Ltd recommended the dividend despite not having the capability to pay the money.

“The company announced the dividend to cheat people,” said the BSEC in a press release yesterday.

So, the decision was taken to file a case against the then board of directors, it added.

The commission also approved an initial public offering of BD Thai Food & Beverage Limited to raise Tk 15 crore in funds from the stock market.

The company will issue 1.5 crore ordinary shares and the IPO proceeds will be utilised to purchase machineries, construct a building and develop land.

Its five years’ weighted average earnings per share was Tk 0.63. The company’s paid-up capital is Tk 66.5 crore.

Until the company’s earnings per share goes over Tk 1, its directors and sponsors will not be allowed to get any dividend, said the BSEC.

The food and beverage maker is allowed to issue 15 per cent shares to its employees but their shares would not be allowed to be sold in the first two years.

The BSEC also allowed Union Bank Limited and Union Insurance Company Limited to issue 15 per cent shares for its employees.

These will also be locked for two years, the BSEC added.

Union Insurance Company Limited got the nod to raise Tk 19.6 crore in funds through an IPO.

Union Bank Limited got its IPO approval last month. The lender would raise Tk 428 crore, the largest amount by any bank in Bangladesh, by issuing 42.80 crore ordinary shares at a face value of Tk 10.

Stocks rise for fifth day

PBC News

The stock market has risen for five consecutive workdays till yesterday as fresh optimism has buoyed investors hopeful of the index of going up further.

The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), rose 27 points, or 0.36 per cent, to 7,356. The index is at its highest point since its inception in 2013. At the DSE, 109 stocks rose, 216 declined and 51 remained unchanged.

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Investors are hopeful of the market going up even further, having already advanced around 20 per cent in the last three months, said a stock broker.

The DSEX soared 18 per cent, or 1,137 points, in the past three months, according to the DSE data.

When market index rises, people gain confidence and dream of seeing a further rise, he said, adding that gains were made by most sectors in recent months.

However, prices of bank stocks are still low compared to that of the other sectors, he said. Among all the sectors, general insurance dropped the most, by 3.56 per cent, while fuel and power rose the highest, by 0.97 per cent.

Turnover of the Dhaka bourse dropped 2 per cent to Tk 2,439 crore which was Tk 2,502 crore.

Stocks of LafargeHolcim Bangladesh Limited were traded the most, worth Tk 129 crore, followed by Bangladesh Export Import Company Limited (Beximco), Orion Pharma Limited, LankaBangla Finance Limited, and Delta Life Insurance Company Limited.

Fortune Shoes Limited topped the gainers’ list, rising 9.17 per cent, followed by Sonali Paper & Board Mills Limited, Prime Finance & Investment Limited, Delta Life Insurance Company Limited, and Genex Infosys Limited.

Eastern Insurance Company Limited shed the most, falling 9.97 per cent, followed by Bangladesh National Insurance Company Limited, National Housing Finance and Investments Limited, and Asia Insurance Limited.

As the insurance sector rose at a higher rate in the last few months, many investors are availing profits from these stocks, said a merchant banker. Now investors are rearranging their portfolios, he added.

Chittagong Stock Exchange (CSE) has also risen. The CASPI, the general index of the port city bourse, rose 53 points, or 0.25 per cent, to 21,377.

Among 319 stocks to undergo trade, 141 advanced, 149 fell and 29 remained unchanged.

BD Thai Food and Beverage gets go-ahead for IPO

PBC News

BD Thai Food and Beverage Ltd has recently got go-ahead to raise Tk 15 crore from the stock market.

Through issuing 1.5 crore ordinary shares, the company would raise the fund and the proceedings of the initial public offering will be utilised to purchase machinery, construct a building and develop land.

For all latest news, follow The Daily Star’s Google News channel.
Its five years’ weighted average earnings per share was Tk 0.63. The company’s paid-up capital is Tk 66.5 crore.

The food and beverage maker has been allowed to issue 15 per cent shares to its employees but their share would not be allowed to sell within two years of listing.

Stock market regulator to sue directors of Shurwid Industries

PBC News

The stock market regulator has decided to file a case against the board of directors of Shurwid Industries for recommending dividend to manipulate the share price of the company.

The Bangladesh Securities and Exchange Commission (BSEC) took the decision in a meeting today, it said in a press release.

For all latest news, follow The Daily Star’s Google News channel.
The PVC product manufacturer announced a 10 per cent cash dividend on November 3, 2019, for the year ended on June 30 of 2019.

However, the company did not pay the dividend to the shareholders.

Later, the BSEC formed an investigation committee, which found that the company recommended the dividend despite not having the capability to pay the money.

“The company announced the dividend for cheating people,” BSEC said.

Stocks rise for third straight day
Propel DSEX to another record highPBC News

Stocks at the Dhaka Stock Exchange (DSE) continued to rise for a third consecutive day, sending the bourse’s prime index to an all-time high.

The DSEX, the benchmark index of the DSE, rose 26 points yesterday, or 0.35 per cent, to 7,329, the highest since its inception in 2013.

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“Many investors are optimistic and hope the market will go up further, so they are buying stocks,” said a top official of a stock brokerage firm.

As a result, the market index is rising alongside its turnover.

“People are investing in huge paid-up capital-based companies and so, the index is rising even though fewer stocks have risen,” he added.

At the DSE, 165 stocks rose, 171 declined and 39 remained unchanged.

Turnover at the Dhaka bourse shot up 10 per cent to Tk 2,502 crore with LafargeHolcim Bangladesh being the largest contributor.

The stocks of the multinational cement maker traded the most, worth Tk 200 crore, followed by Orion Pharmaceuticals, Beximco Limited, Power Grid, and Beximco Pharmaceuticals.

CVO Petrochemical topped the gainers’ list, rising 8.67 per cent, followed by Sonali Paper, Premier Cement, Baraka Patenga Power, and Agni Systems.

Eastern Insurance shed the most, falling 9.98 per cent, followed by Desh Garments, Fareast Finance, Nurani Dyeing, and Shyampur Sugar Mills.

Large-cap sectors posted mixed performances yesterday. Fuel and power booked the highest gain of 1.96 per cent followed by non-bank financial institutions, pharmaceuticals, and food and allied products.

Engineering experienced the highest loss followed by telecommunications and banks. Block trades contributed 0.4 per cent to the overall market turnover.

“Most people are investing in stocks that mostly rose based on rumours,” said a merchant banker preferring anonymity.

Investors should be cautious in such situations as they risk incurring losses.

“The stock prices of many well-performing companies are still at low levels so they can invest those instead,” he added.

Such companies ensure returns in the long run, the merchant banker said, adding that people should not seek short-term profits.

The Chattogram Stock Exchange (CSE) also rose yesterday as the CASPI, the general index of the port city bourse, rose 53 points, or 0.25 per cent, to 21,377.

Among 319 traded stocks, 141 advanced, 149 fell and 29 remained unchanged.

Trading of SMEs begins at Dhaka bourse

stocks down

 

CSE to launch index for small firms

The six small-and-medium enterprises (SMEs) listed on the DSE-SME board of the Dhaka bourse yesterday began secondary trading.

The DSE-SME, a small-cap board, was rolled out on April 30, 2019 with a view to facilitating finance for SMEs from the stock market.

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Prof Mizanur Rahman, a commissioner of the Bangladesh Securities and Exchange Commission (BSEC), inaugurated the platform’s first secondary trading session at a programme organised by the DSE at its office in Nikunja.

Among the six SMEs to begin secondary trading, Master Feed Agrotec and Oryza Agro Industries were recently listed after completing their qualified investor offers (QIO).

The four other companies — Himadri, Wonderland Toys, Bengal Biscuits, and Apex Weaving and Finishing Mills — were brought over to the SME board from the over-the-counter market.

“Thanks to the SME platform, SMEs in the country have the chance to raise funds from the stock market, which would impact the entrepreneurs positively,” Rahman said while addressing the event as chief guest.

There are a huge number of SMEs in Bangladesh but financial reporting in the sector is not being properly carried out as firms themselves are dependent on inefficient people.

“So, their production costs are also higher,” he added.

The BSEC commissioner went on to say that the DSE and SMEs should work together to enhance their efficiency, corporate governance and sustainability to this end.

“The bourse is responsible for ensuring investor interests are met, so it should prepare an online dashboard where companies can quickly publish their financial reports,” he said.

Md Eunusur Rahman, chairman of the DSE, and Tarique Amin Bhuiyan, managing director, also spoke at the event.

Earlier this year, the Chattogram Stock Exchange inaugurated its Small Capital Platform, the first of its kind in the country, through the debut of Nialco Alloys Limited on June 10.

Now, the port city bourse has decided to launch a separate index for the Small Capital Platform, namely the CSE-SME Index, next Sunday. The new index will be calculated based on the prices of five new companies alongside the existing Nialco Alloys on the first trading day.

“In addition to its existing five major indices and 18 sectoral indices, the CSE will introduce a new index,” it said in a press release.

This index will be a free-float Index with a base of 1000 points.

Once the CSE-SME is launched, new issues will be added as per regular index practices.

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