Sunday, August 31, 2014

DSE WEEKLY REVIEW - Dhaka stocks rebound with increased turnover

New Age - 31 August'2014 Sunday


Dhaka stocks rebounded last week after a decline in the previous week with an increased turnover as investors were expecting that the share prices might increase further.
The benchmark key index of the Dhaka Stock Exchange, DSEX, finished at 4,578 points, adding 0.68 per cent or 30.94 points.
The daily average turnover of the DSE increased to Tk 690.21 crore last week compared with that of Tk 657.97 crore in the previous week.
As the bourse maintained a daily average turnover above Tk 600 crore for the last couple of weeks, investors became optimistic about the market prospect, market operators said.
Operators said that investors became hopeful that fresh fund would be injected into the capital market from the banking sector as the banks’ deposit rate declined significantly in recent times due to huge amount of idle money.
Regulatory pressure on the asset management companies to increase their investment at the capital market from the mutual funds was another reason for the increased investments at the capital market, they said.
The market, however, witnessed some short of volatility in the last three trading sessions of the week amid increased share selling by a section of investors to make some short-term gain, they said.
DS30, the blue-chip index of the DSE, finished at 1,726.48 points, increasing by 0.04 points.
The Shariah index of the bourse, DSES, also remained static at 1,066.12 points, increasing by 0.42 per cent or 4.42 points.
Of the 307 shares and mutual funds traded on the week, 136 advanced, 152 declined and 19 remained unchanged.
‘Holding up DSEX above 4,500-point psychological level for the last three weeks, the market observed increased investor participation,’ IDLC Investments said in its weekly market commentary.
‘Additionally, fresh fund injections, especially in large capitalised stocks aided further spike in market activities,’ it said.
Overall, the market observed investors’ favourable response to investment scenario, said IDLC.
‘Hence, after losing marginally at the opening session, the DSEX gained over lucrative price hunts in large caps like MJL Bangladesh, BSRM Steels and BEXIMCO in second and third session,’ it said.
But, investors’ intention to book profit and re-balancing of portfolio shaded the market sentiment slightly, closing DSEX red with lower turnover at the later part of the week, IDLC added.
BEXIMCO led the turnover leaders with its share worth Tk 248.32 crore changing hands last week.
MJL Bangladesh, BSRM Steels, Beximco Pharma, Grameenphone, Khulna Printing & Packaging, Lafarge Surma Cement, Square Pharma, Golden Son and ACI were among the other turnover leaders.
Agni Systems gained the most in the week with a 38.61-per cent increase in its share price.
Beximco Pharma, Salvo Chemical Industry, Golden Harvest Agro Industries, Fu-Wang Ceramic, Summit Alliance Port, Barakatullah Electro Dynamics, Rangpur Dairy and Foor Products, Golden Son and United Airways were among the other top gainers.
Pragati Life Insurance was the worst loser of the week with a 26.69-per cent decline in its share price.
Khulna Printing & Packaging, Southeast Bank 1st Mutual Fund, IFIL Islamic Mutual Fund-1, NLI First Mutual Fund, Square Pharma, GPH Ispat, Bangladesh Submarine Cable Company, Progressive Life and Provati Insurance Company were also among the top losers.

Banking sector shows rising capital strength

FE Report - 31 August'2014 Sunday
Banking sector showed rising capital strength with a weighted average core capital adequacy ratio of 10.68 per cent at the end of June, reports BSS.

The level of capital adequacy was well above the 8.0 per cent risk-weighted assets, stipulated in the Basel-II regulations.

The latest Bangladesh Bank (BB) data showed the capital requirement that banks should maintain as a regulatory obligation was Tk 636.94 billion or 10.68 per cent of their total capital at the end of June this year.

The amount of the risk-weighted assets rose by 138 per cent in the past five years, demonstrating a strong fundamental and low risk of the country's banking sector, a BB official told the news agency.

He said the amount of the risk-weighted assets was Tk 267.13 billion in 2009 when the central bank adopted the Base-II regulations, a global standard that banks should follow to maintain a certain level of cash reserve to fence off operational risk factors.

"The higher cash reserve reflects the higher capacity of banks to absorb shocks from operational and other losses," the official said.

The higher capital adequacy of banks has been attributed to the prudent policy support, strict monitoring and effective training of staff of the central bank as well as commercial and specialized banks.

Cutting the time limit for classifying bad loans from six months to three months also helped a lot to bring down the amount of bad loan, which eventually strengthened the capital base.

"The banking sector also posted a stable performance in the past few years, with the non-performing loan ratio capped at a relatively low level," the BB official said.

The banks in the first six months of this year earned gross profit of Tk 100 billion compared to the annual gross profit of Tk 180 billion in 2013.

The BB official said the profit and the capital risk-weighted assets would be more should there be no problem and credit scams in some of the state-owned banks.

Wednesday, August 27, 2014

Stocks end higher for 2nd straight session

FE Report - 27 August'2014 Wednesday
Stocks ended higher for the second straight session Tuesday with significant improvement in turnover due to strong buying and selling pressure.

Following previous day's uptrend, market opened the session on an upbeat note gaining about 43 points within the first 15 minutes of trade. It remained in green for the remaining session as well but amid trifling fluctuations.

At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE) went up by 26.30 points or 0.57 per cent to close at 4,590.65 points. It is the four months highest level of DSEX since April 28, 2014.

The DSE Shariah Index advanced 2.45 points or 0.23 per cent to close at 1,065.47 points. However, the DS30, comprising blue chips closed negative with losing 0.03 point to end at 1,728.41 points.

Trading at DSE remained vibrant with total turnover hitting seven-month high to Tk 7.95 billion, registering an increase of 12.44 per cent over the previous session's value of Tk 7.07 billion.

"The prime bourse - DSE stretched its bullish spell amidst investors' buoyant attitude. The steady upward movement continued along with growing investors' participation," said International Leasing Securities, in its regular market analysis.

The investors' optimism aided the rally in several scrips from pharmaceuticals sector, particularly Beximco Pharma and Orion Pharma, the International Leasing Securities said.

However, investors' indecisiveness was noticed in the textile sector amidst NBR's new policy regarding income tax calculation for RMG exporters, it added.

"Large cap stocks further extended the dominance in turnover, with Beximco Limited topped the chart for the fifth consecutive day," said IDLC Investments.

Investors' participation remained strong and turnover spiked at Tk 7.95 billion, highest within last seven months, said the merchant bank.

"Bull has once again picked up its pace with the benchmark index DSEX heading towards 4,600 marks," said LankaBangla Securities.

"The traders favoring the winning stocks are adjusting the losing stocks during trading session which implies the slowdown of the market after mid-day and subdued performance by blue chip stocks, DS30 was narrowly unchanged," commented Sheltech Brokerage Ltd.

Among the large cap sectors, only banks and pharmaceuticals advanced by 1.26 per cent and 1.02 per cent respectively.

The other major sectors closed negative. Telecommunication lost the most - 2.62 per cent. NBFIs and fuel & power went down 0.67 per cent and 0.40 per cent respectively. Food & allied also edged down with 0.06 per cent loss.

The gainers took a lead over the losers as out of 298 issues traded, 195 advanced, 80 declined and 23 remained unchanged on the DSE floor.

Activities increased in the major bourse (DSE) where trade and volume were up by 8.86 per cent and 17.69 per cent respectively. A total of 0.153 million trades were executed with 188.49 million securities of trading volume.

The total market capitalisation on DSE stood at Tk 3,018.89 billion against Tk 3,024.13 billion in the previous session.

The port city bourse, Chittagong Stock Exchange (CSE) also closed higher with its Selective Categories Index - CSCX - gained 60.33 points to close at 8,674.45 points.

Losers beat gainers 142 to 67, with 15 issues remaining unchanged at the port city bourse that traded 15.65 million shares and mutual fund units, turnover value of Tk 535.28 million.

DSE turnover hits 7-month high

FE Report - 27 August'2014 Wednesday
Turnover value on the Dhaka Stock Exchange (DSE) hit a fresh seven months high Tuesday, powered by investors' buying spree mostly on large-cap stocks.

Daily turnover value soared to Tk 7.95 billion, registering an increase of 12.4 per cent over the previous session's value of Tk 7.07 billion. It was the highest turnover since Tk 8.04 billion on February 3, this year.

The investors' participation mostly concentrated on fuel & power, pharmaceuticals and engineering - the sectors that accounted for 16.26 per cent, 15.41 per cent and 12.23 per cent respectively in the day's total trade.

However, the ever highest turnover on the DSE was recorded Tk 32.49 billion on December 5, 2010.

Along with increasing turnover, the prime index of the DSE - DSEX also went up by 26.30 points or 0.57 per cent to close at 4,590.65 points. It is the four months highest level of DSEX since April 28, 2014.

The gainers beat the losers 195 to 80. Twenty-three issues, however, remained unchanged on the premier bourse.

IPO of National Feed, Mudaraba Subordinate Bond of SIBL approved

FE Report - 27 August'2014 Wednesday
The securities regulator Tuesday approved the IPO (initial public offering) proposal of National Feed Mill and Tk 3.0 billion Mudaraba Subordinate Bond of the Social Islami Bank Limited (SIBL), officials said.

The approvals came at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).

As per the regulatory approval, National Feed Mill will offload 18 million ordinary shares under the fixed price method at an offer price of ten taka each.

The company will raise a fund worth Tk 180 million for repayment of bank loan and expansion of business along with boosting working capital.

As per the audited financial statement for the year ended on June 30, 2013 the earnings per share (EPS) and net asset value (NAV) of the National Feed Mill are Tk 1.85 and Tk 14.55 respectively.

The ICB Capital Management has been appointed the manager to the National Feed Mill.

The SIBL will issue the Mudaraba Subordinate Bond worth Tk 3.0 billion to boost its capital under the Tier 2.

Banks, Insurances, Financial Institutions, Corporate Houses and Individual Investors will be allowed to purchase the SIBL's bond whose tenure will be six years from the date of issuance.

The face value of the SIBL's bond is of Tk 0.5 million and the market lot for individuals consists of one whereas the market lot for institutional investors consists of twenty.

The annual profits will be provided at the rate of 120 per cent of the Mudaraba Term Deposit.

At Tuesday's meeting, the securities regulator has imposed a penalty of Tk 0.5 million on AB Securities for breaching securities rules.

Unique Share Management will also have to pay a penalty of Tk 0.5 million for breaching securities rules.

BSEC fines two stockbrokers Tk 10 lakh for violating rules

New Age - 27 August'2014 Wednesday
The Bangladesh Securities and Exchange Commission on Tuesday fined two member-brokers of the Dhaka Stock Exchange Tk 5 lakh each as they violated different securities rules.
The member-brokers are AB Securities Limited and Unique Share Management Limited.
A commission meeting presided over by its chairman M Khairual Hossain made the decision based on inspection reports, a BSEC news release said.
According to the BSEC report, AB Securities violated several rules of the Securities and Exchange Rules, 1987 as the BSEC inspection found a deficit of Tk 6,05,05,162 in the consolidated customer account of AB Securities, which was payable to its customer during 2013, the BSEC release said.
The commission’s inspection team also found evidences of accepting clients’ fund above Tk 5 lakh in cash by the AB Securities, violating rules 8 (c) and (i) of Securities and Exchange Rules, 1987.
Unique Share Management violated a BSEC directive by providing loan facilities to its directors, BSEC inspection found.
The DSE member-broker also provided loan facilities to its clients above allowable limit on non-marginable shares and on ‘Z’ category shares violating several BSEC directives.
There was no transaction by Unique Share Management through its dealer account during January 1, 2012 to October 31, 2013, the BSEC release said. - See more at: http://newagebd.net/43942/bsec-fines-two-stockbrokers-tk-10-lakh-for-violating-rules/#sthash.LOkEhp9W.dpuf


The Bangladesh Securities and Exchange Commission on Tuesday fined two member-brokers of the Dhaka Stock Exchange Tk 5 lakh each as they violated different securities rules.
The member-brokers are AB Securities Limited and Unique Share Management Limited.
A commission meeting presided over by its chairman M Khairual Hossain made the decision based on inspection reports, a BSEC news release said.
According to the BSEC report, AB Securities violated several rules of the Securities and Exchange Rules, 1987 as the BSEC inspection found a deficit of Tk 6,05,05,162 in the consolidated customer account of AB Securities, which was payable to its customer during 2013, the BSEC release said.
The commission’s inspection team also found evidences of accepting clients’ fund above Tk 5 lakh in cash by the AB Securities, violating rules 8 (c) and (i) of Securities and Exchange Rules, 1987.
Unique Share Management violated a BSEC directive by providing loan facilities to its directors, BSEC inspection found.
The DSE member-broker also provided loan facilities to its clients above allowable limit on non-marginable shares and on ‘Z’ category shares violating several BSEC directives.
There was no transaction by Unique Share Management through its dealer account during January 1, 2012 to October 31, 2013, the BSEC release said.
 


Regulator approves National Feed Mill's IPO

Daily Star - 27 August'2014 Wednesday
The Bangladesh Securities and Exchange Commission yesterday gave a go-ahead to National Feed Mill to raise Tk 18 crore from the public.
Using the fixed price method, the textiles company is set to float 1.8 crore ordinary shares worth Tk 10 each.
ICB Capital Management and PLFS Investments will jointly manage the initial public offering (IPO). The proceedings will be used to expand National Feed Mill's business, meet working capital needs and repay bank loans.
The company's earnings per share as of June 2013 stood at Tk 1.85, with a net asset value per share of Tk 14.55 after revaluation. The approval came at a meeting presided over by BSEC Chairman Khairul Hossain, the stockmarket regulator said in a statement.
In addition, BSEC fined two stockbrokers at yesterday's meeting -- AB Securities and Unique Share Management -- Tk 5 lakh each for breaching securities rules.
In another move, the regulator approved Social Islami Bank's proposal to issue Tk 300 crore mudaraba-subordinated bonds, which can be issued to banks, insurance firms, financial institutions, corporate houses and individual investors.
The face value of each unit of the bond, which will have a maturity period of six years, will be Tk 5 lakh. The market lot will be five units for institutions and one unit for individuals.


Published: 12:00 am Wednesday, August 27, 2014

Tuesday, August 26, 2014

BSEC probe finds manipulation in SPCL share trade

New Age - 26 August'2014 Tuesday


An investigation committee of the stock market regulator on unusual price hike of Shahjibazar Power Company’s shares has found evidence of price manipulation by a few investors, said BSEC sources.
The two-member committee of Bangladesh Securities and Exchange Commission submitted the probe report to the commission on Monday.
Sources said that the committee found that at least five investors were engaged in manipulating share prices of the company.
Shahjibazar’s share price rose by 256.80 per cent or Tk 64.20 to Tk 89.2 on August 10 since its debut at Tk 25 in mid-July.
Following the abnormal price hike of Shahjibazar shares, the BSEC on August 3 formed the two-member investigation committee comprising of BSEC deputy director Md Yusuf Bhuiyan and assistant director Mohammad Rakibur Rahman.
The Dhaka and Chittagong stock exchanges on August 11 suspended trading of the company’s shares as its share prices continued
to rise despite BSEC committee formation.
‘The inquiry report has successfully established some investors’ involvement behind the recent abnormal increase in share prices of Shahjibazar,’ said a source.
He, however, could not immediately give the names of investors. ‘The commission will now go through the report and decide what action will be taken,’ he said.
Another probe committee on the unusual price hike of FAR Chemical Industries also submitted its report to the commission on Monday.
The details of the committee report could not be known immediately.
The capital market regulator on August 3 formed the committee.
The shares of FAR Chemical Industries were traded at Tk 43 each on July 15 this year.
Its share price increased to Tk 59.20 on August 3 without having any price sensitive information.

2 Submarine Cable's profit falls 58pc

Daily Star - 26 August'2014 Tuesday
Sarwar A Chowdhury
Net profit of Bangladesh Submarine Cable Company dropped more than 58 percent year-on-year to Tk 36 crore in 2013-14, as the state-owned internet connectivity provider lost its market share.
The company's major income comes from sales of bandwidth, which came down to 25 gigabits per second (Gbps) last fiscal year from 42 Gbps a year earlier.
“Many of our customers switched to private sector international terrestrial cable (ITC) providers that sell bandwidth at low prices,” said Monwar Hossain, managing director of the company.
“We lost revenues due to a huge gap between the government and private ITC providers in bandwidth prices.”
Submarine Cable Company has already decided in principle to reduce the bandwidth selling price to be competitive with the private sector ITC providers.
“But we will need the telecom ministry's approval and we will urge the ministry to allow us to reduce the bandwidth selling price.”
There are six private ITC providers that sell around 35 Gbps, meaning Bangladeshis use a total of 60 Gbps internet bandwidth for voice and data connectivity.
The sharp decline in Submarine Cable's net profit forced the company to announce lower dividends for fiscal 2013-14 than a year ago.
The company on Sunday declared 10 percent cash dividends for the last fiscal year, compared with 20 percent cash and 15 percent stock dividends for 2012-13.
The fall in net profit and dividends eroded investor confidence to chase for the company's stocks, which declined 8.33 percent on the trading board yesterday.
On the Dhaka Stock Exchange, each share of the company traded between Tk 160 and Tk 150, before closing at Tk 151.8.
With the sharp fall, Submarine Cable, which got listed in 2012, also became the second worst performer for the day on the premier bourse.
Published: 12:01 am Tuesday, August 26, 2014

Fuel & power, engineering, pharma stocks dominate DSE trading

FE Report - 26 August'2014 Tuesday
Stocks returned to the green Monday after three consecutive sessions of downhill with turnover falling slightly as investors went for late hour buying spree.

DSEX, the prime index of the Dhaka Stock Exchange (DSE) went up by 23.74 points or 0.52 per cent to close at 4,564.34 points after four hours trading.

The other two indices also ended in positive. The DS30, comprising blue chips gained 6.70 points or 0.38 per cent to close at 1,728.44 points. The DSE Shariah Index advanced 2.87 points or 0.27 per cent to close at 1,063.02 points.

The total turnover on DSE stood at Tk 7.07 billion, registering a decline of 4.20 per cent over the previous session's value of Tk 7.38 billion.

The investors' activity was mainly focused on fuel and power, engineering and pharmaceuticals sectors, accounted for 18 per cent, 13 per cent and 10 per cent respectively of the days' total turnover.

"Investors continued to accumulate large cap stocks with turnover crossing Tk 7.0 billion for consecutive second day. The strong turnover in last few weeks shows investors' growing interest and consequent fresh money injection," commented IDLC Investments, in its regular market analysis.

LankaBangla Securities said: "Market snapped the losing streaks Monday after consolidating around 4,550 points-mark in previous trading session with benchmark index up by 23.74 points".

Recent momentum in MNCs and FMCGs continued to support markets following the uptrend seen throughout much of the past two weeks, said the stock broker.

 "Stocks momentum suggests that investors are keeping their eyes on reports on existing fundamental stock, leading economic indicators, and manufacturing activities," said the stock broker.

Among the major industry news, Bangladesh Bank (BB) has formulated draft guidelines on risk-based capital adequacy ratio in a bid to implement Basel-III from the next year by raising scheduled banks' capital bases.

Banks will have to implement the new guidelines on capital arrangement in five years. Under the guidelines, banks will have to raise their capital to 12.50 per cent against their risk-weighted assets by 2019 from the existing 10 per cent.

Large cap sectors posted mixed performance. Banks and NBFIs advanced 1.01 per cent and 1.44 per cent respectively. Food & allied went up by 0.45 per cent.

Pharmaceuticals and fuel and power retraced 0.40 per cent and 0.32 per cent respectively.  Telecommunication ended flat losing 0.01 per cent - one of its issues BSCCL went down by 8.0 per cent following its declaration of 10 per cent cash dividend.

The gainers took a lead over the losers as out of 295 issues traded, 155 declined, 117 advanced and 23 remained unchanged on the DSE floor.

A total number of 0.140 million trades were executed in day's trading session with 160.16 million securities of trading volume. The total market capitalisation on DSE stood at Tk 3,024.13 billion against Tk 3,020.77 billion in the previous session.

Banks in the soup with housing loans - Realtors owe lenders Tk 81b in bad loans

FE Report - 26 August'2014 Tuesday
Badrul Ahsan
Banks in the soup with housing loans



Nearly 38 per cent of the loans extended to the housing sector by commercial banks have become classified amidst a noticeable slowdown in real-estate business for the last couple of years.

Bankers are now deeply worried about the future of the money their banks have invested in the sector.

According the central bank statistics, the total outstanding bank loans of country's real-estate sector was Tk. 355 billion until December 13, 2013. Of the amount, Tk. 81 billion was found to be bad, Tk. 32 billion substandard and Tk. 21 billion doubtful.  The amount of bad loan to the sector was Tk.50 billion only a year back and Tk. 40 billion in December 2011.

The volume of substandard and doubtful loans--the two stages preceding to a loan becoming bad--also surged in keeping with the rise in the volume of bad loans.

Bankers and realtors said the 2010 share-market crash and its cascading impact and ebbing remittance inflow were the main barriers facing the realtors' business.

They also cited the fall in businesses of multipurpose societies as a contributory factor for the situation.

The number of buyers belonging to the upper-middle-income group like doctors, and high-salaried officials of multinational corporations has remained more or less stable. But, they said, what has hurt the real-estate business most is the decline in the number of expatriate buyers.

People in the real-estate business said they target mainly expatriates, middle-income people and investors in the share market to boost their business.

They said the slow recovery of the US economy coupled with the prolonged recession in Europe has induced a sharp fall in the property business at home.

Bangladeshi expatriates and middle-income people were the main clients of the sector when it had experienced a boom period between 2005 and 2010, they said.

The boom-time zeal snowballed fast in the country's major cities and many people with lack of adequate knowledge in the business also invested in it.

A top official at the country's largest private commercial bank, Islami Bank Bangladesh Ltd (IBBL), appeared to be worried over the situation with the overall bank loans to the housing sector.

 "All the commercial banks are facing hurdles in business for the last couple of years for multifarious reasons. Now gradual increase in bad loans in the housing sector might worsen the situation further," managing director (MD) of IBBL Mohammad Abdul Mannan told the FE.

He claimed that his Islamic bank had a smaller amount of such dud money lent out to the sector as it monitored strictly the lending operations.

The MD also claimed that the IBBL provided loans to the real- estate sector mostly through personal level instead of firms. And it has 'saved' the bank from further strains, he said.

Ali Reza Iftekhar, Managing Director and CEO of Eastern Bank Limited, said the government should immediately make a move to increase transactions in the real-estate sector.

"Loans in the housing sector have become a headache for the bankers as they neither can recover the money invested from the realtors nor seize the flats or plots as there are no customers to buy those," he added.

He said many commercial banks are rescheduling the loans with lump-sum down payments.

 "In this situation, only government's initiative can save both bankers and realtors."

Meanwhile, data with the Real Estate and Housing Association of Bangladesh (REHAB), a group of 1,200 realtors, show more than 22,000 ready flats remaining unsold for long for varied reasons.

"This is the highest number of unsold flats in the country's apartment business since the 80s," said General Secretary of REHAB Md. Wahiduzzaman.

He told the FE that the situation had started deteriorating after the share-market debacle and Destiny scam. The high interest on bank loans and prolonged halt in gas and electricity connections also had a negative impact on the housing business, he said.

"Government should immediately announce block allocation of funds at single-digit interest."

"Besides," Wahiduzzaman added, "the authorities should also permit investment of undisclosed money in the housing sector without any question from other agencies."

Such a desperate remedy he sees as sine qua non for saving hundreds of thousands of direct and indirect dependants on this sector.

Friday, August 22, 2014

Envoy plans to set up Tk 235cr spinning unit

Daily Star - 22 August'2014 Friday
Sarwar A Chowdhury
Envoy Textiles plans to set up a spinning unit at a cost of about Tk 235 crore to produce yarn, 80 percent of which will be used for its own consumption.
The unit, which is expected to start commercial operation in the first quarter of 2016, will sell the rest 20 percent of its production to others.
HSBC and Brac Bank will finance about Tk 156 crore of the project cost and Envoy will provide the rest, the company said in a posting on the website of Dhaka Stock Exchange yesterday.
Envoy, a denim maker, has already finalised the plan for the unit that will have a production capacity of 17,500 tonnes yarn a year.
“We will be a full-fledged textile manufacturer after completion of the unit at Bhaluka in Mymensingh,” said Abdus Salam Murshedy, managing director of Envoy Textiles that supplies clothes to Wal-Mart, H&M, JC Penney, Gap, Carrefour, Zara and Next.

Yarn produced at the unit will reduce the cost of production and increase the quality of products, he said. “We will be able to be more competitive in the international markets.”

The bank borrowing will be under offshore financing arrangement for a maximum of five years, subject to final approval from authorities.
The company, which got listed in the stockmarket in 2012, hopes to make annual profits of Tk 40-45 crore from expected turnover of Tk 390 crore a year with the beginning of production at the unit.
The major capital machineries to set up the unit will be imported mainly from Germany, Switzerland and Japan.
The news, however, failed to cheer up the investors, as the share price of the garment maker declined 1.93 percent on the premier bourse yesterday from the previous day.
Each share traded between Tk 52.9 and Tk 49.8, before closing at Tk 50.6.
Envoy's net profit rose 2.64 percent year-on-year to Tk 43.54 crore in 2013.
Published: 12:00 am Friday, August 22, 2014

Stocks fall in late sell-offs

New Age - 22 August'2014 Friday


Dhaka stocks remained negative for the second trading session on Thursday, the last trading session of the week, due to profit taking sell-offs by the second half of the session.
The key index of Dhaka Stock Exchange, DSEX, finished flat at 4,547.05 points, shedding 0.14 per cent or 6.81 points.
Turnover of the bourse declined to Tk 632.13 crore on Thursday compared with Tk 642 crore in the previous trading session.
Despite a positive start the market finished negative as investors increased share sales by the late trading session, market operators said.
The market in the previous four trading sessions gained around 200 points that might have prompted investors to make some profit, they said.
On the other hand, investors’ increased attraction to some specific large capitalised companies’ shares was also observed on the day, operators said.
Heavyweight stocks like MJL Bangladesh, BEXIMCO and BSRM Steels gained 7.92 per cent, 4.53 per cent and 4.84 per cent respectively.
The operators also said that considering the prevailing political situation and expectation of improved business situation there was nothing that might demoralise investors immediately unless anything unpleasant happens.
Besides that, if institutional investors reduced participation ahead of the third quarter closing, it may have impact on the market, they said.
DS30, the blue-chip index of DSE, fell by 0.07 per cent, or 1.29 points, to close at 1,726.43 points on the day.
The Shariah index of the bourse, DSES, declined to 1,061.70 points, shedding 0.41 per cent or 4.44 points.
Of the 295 shares and mutual funds traded on the day, 108 advanced, 162 declined and 25 remained unchanged.
BEXIMCO led the turnover chart as its shares worth Tk 48.31 crore changed hands.
MJL Bangladesh, BSRM Steels, Khulna Printing and Packaging, Grameenphone, Square Pharmaceuticals, ACI Limited, Lafarge Surma Cement, Bangladesh Shipping Corporation and Bangladesh Submarine Cable Compnay were among other turnover leaders.
Khulna Printing and Packaging, a newly listed company, gained the most on the day with a 9.66 per cent increase in its share prices, while IFIL Islamic Mutual Fund One was the worst loser of the day, shedding 10 per cent.
Meanwhile, BEXIMCO and BSRM Steels following a DSE query replied that there was no undisclosed price sensitive information for the recent unusual hike in share prices of their companies.
Share prices of BEXIMCO increased by 1.90 per cent or Tk 5.07 on Thursday to close at Tk 39.2.
BEXIMCO shares increased 84.90 per cent in last two-and-half months which were traded at Tk 21.2 on June 8.
Share prices of BSRM Steels increased by 25 per cent to Tk 97.5 on Thursday which were traded at Tk 78 on August 7.