Friday, January 30, 2015

DSEX dips 23.58 points

FE Report - 30 January'2015 Friday
Stocks ended lower for the second running session Thursday amid sluggish trading activities as investors' confidence remained shaky following ongoing political deadlock.

The market opened with a negative note which continued till the market closure amid modest see-saw. DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down 23.58 points or 0.49 per cent to close at 4,724.04 points.

The two other indices also closed in red. The DS30 index, comprising blue chips lost 9.05 points or 0.51 per cent to close at 1,747.75 points. The DSE Shariah Index (DSES) dropped 6.62 points or 0.59 per cent to close at 1,115.69 points.

Trading at DSE continued to remain sluggish amid political instability. The total turnover came down to Tk 2.06 billion, registering a decline of 12.34 per cent over the over the previous session's value of Tk 2.35 billion.

The investors' attention was mostly focused on textiles, power and engineering - the sectors that accounted for 15.3 per cent, 14.9 per cent and 11.4 per cent respectively of the day's total turnover value.

"The morning selling spree continued throughout the session as indecisiveness and watchful stance lingered amid ongoing sluggish economic activities and political deadlock," commented International Leasing Securities in an analysis.

"Investors stayed on the sideline to watch over the monetary policy statement to understand the central bank's response, which has been published after the end of the day's trading session," said the International Leasing Securities.

LankaBangla Securities said: "Market continued to extend losses, tracking cues from the on-going deadlock in economic activities amid strikes and blockade".

Investors are looking ahead to the monetary policy statement (MPS) decision for the second half of the FY2014-15, due later in the day, the stock broker said.

According to Bangladesh Bank officials this MPS will mainly focus on stimulating both local and foreign direct investment (FDI), it said.

The intraday trading was mostly bearish, though buyers came in last hour to reduced loss of early trading.

"Investors are looking forward to the indication that the policymakers would consider the shocks accruing to the economy as outcome of the ongoing political impasse in MPS," the stock broker added.

IDLC Investments: "The last session of the week extended the bearish sentiment that prevailed during the week".

Investors were reluctant from the start of the session. Alongside, they were eagerly waiting for H2 FY 2015 Monetary Policy Statement, said the merchant bank.

"Though numerous earnings disclosures appeared during the day, sentiment couldn't get uplifted," the merchant bank added.

Among the large-cap sectors food and allied was the only sector which ended in green with 2.89 per cent gain. The heavy weight constituent BATBC witnessed steep price appreciation of 4.02 per cent alone.

Fuel and power and NBFIs saw correction of 1.37 per cent and 1.34 per cent respectively. Telecommunication and pharmaceuticals also closed lower with losing 0.66 per cent and 0.40 per cent. Cement and banks also lost 0.31 per cent 0.27 per cent respectively.

The losers took a lead over the gainers out of 303 issues traded, 202 declined, 75 advanced and 26 remained unchanged on the DSE floor.

Activities decreased in the major bourse (DSE) where volume and trade were down by 2.85 per cent and 7.02 per cent respectively. A total number of 0.068 million trades were executed with trading volume of 58.04 million securities.

The market capitalisation on DSE stood at Tk 3,177.69 billion against Tk 3,190.59 billion in the previous session.

Newly listed C & A Textiles was the most traded stock with shares worth Tk 109.06 million changing hands followed by Lafarge Surma Cement, CVO Petrochemical, BSCCL and GP.

National Polymer was the day's top gainer, posting a rise of 7.94 per cent while Exim Bank First Mutual Fund was the day's worst loser, plunging 9.09 per cent.

The port city bourse, Chittagong Stock Exchange (CSE) also ended lower with its Selective Categories Index - CSCX - lost 64.94 points to close at 8,736.03 points.

Losers beat gainers 155 to 48, with 35 issues remaining unchanged at the port city bourse that traded 6.25 million shares and mutual fund units, turnover value of Tk 179.31 million.

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Thursday, January 29, 2015

Dhaka stocks revert to negative zone

New Age - 29 January'2015 Thursday


Dhaka stocks reverted to negative zone on Wednesday after rising in the previous trading session amid volatile trading due to investors’ skepticism about the market prospect.
The key index of Dhaka Stock Exchange, DSEX, fell by 0.19 per cent, or 9.46 points, to close at 4,747.63 points on the day.
Share prices of two-third traded scrips fell on the day as investors were uncertain about the market prospect due to the ongoing political unrest, stockbrokers said.
The market on Wednesday started positive with increased share prices of most traded scrips, but it lost the momentum and declined to 4,729.55 points within 40 minutes of trading after beginning with 4,757.10 points.
The key index of the bourse in the next 2 hours recovered some ground and stood at 4,776.05 points at 1:20pm as some government-owned entities were playing a major role to buoy the market.
As prices of most traded scrips fell within the remaining time of the trading session, the DSEX finished negative at 4,747.63 points.
Stockbrokers said that settlement of existing political problem might restore investors’ confidence over the market.
DS30, the blue-chip index of DSE, however, finished flat at 1,756.80 points, adding 1.27 points due to rise in share prices of large capitalised companies.
The Shariah index of the bourse, DSES, fell by 0.16 per cent, or 1.84 points, to finish flat at 1,122.32 points.
Of the 305 shares and mutual funds traded on the day, 99 advanced, 171 declined and 35 remained unchanged.
Turnover of the bourse increased marginally to Tk 235.86 crore on the day compared with that of Tk 215.17 crore in the previous trading session.
‘Shedding 9.5 points off, DSEX closed flat, amid day-long tug of war between bearish and opportunistic investors,’ IDLC Investments said in its daily market commentary.
‘However, the session was asymmetric, with 171 scrips declining, against advancement of 99 issues,’ said IDLC.
‘Market acted mixed today and passed a volatile session,’ LankaBangla Securities said in its daily market commentary.
‘Small caps observed buying interest in market as some sector specific stocks drowned to lucrative buying price ranges,’ it said.
C&A Textiles led the turnover chart for anther trading session with its shares worth Tk 12.94 crore changing hands.
Alltex Industries, CVO Petrochemicals, Aamra Technologies, Grameenphone, Beximco Pharma, Summit Alliance Port, Bengal Windsor Tharmoplastics, GSP Finance Company and Agni Systems were among other turnover leaders.
Bangladesh Submarine Cable Company gained the most on the day as its share prices rose by 9.96 per cent, while Exim Bank 1st Mutual Fund was the worst loser of the day, shedding 9.58 per cent.

BSEC scrutinising MFs’ assets to check misuse by AMCs

New Age - 29 January'2015 Thursday


HM Murtuza
A file photo shows the Bangladesh Securities and Exchange Commission headquarters in Dhaka. The BSEC has started scrutinising the assets of the mutual funds as the commission is suspecting unlawful use of the assets by some asset management companies. — New Age photo
The Bangladesh Securities and Exchange Commission has started scrutinising the assets of the mutual funds as the commission is suspecting unlawful use of the assets by some asset management companies.
In December last year, the capital market regulator issued letters to the custodians of mutual funds asking the entities to submit details of the MFs’ assets under their custody within January 20, 2015, a BSEC senior official told New Age.
The custodians were asked to submit data of the mutual funds as of December 30 last year, he said.
Custodian is a financial institution that holds customers’ securities for safekeeping so as to minimise the risk of their theft or loss.
Custodians are assigned in a mutual fund for ensuring security of the assets managed by the asset management companies.
There are complaints that the AMCs are misusing the assets of mutual funds in different forms, the official said.
Based on the complaints, the commission asked the custodians of the mutual funds along with the AMCs to submit details of the assets, he said.
‘The commission is now crosschecking the asset-related data of the mutual funds provided by the AMCs and the custodians, he said.
The commission in the last couple of years had taken several steps to make the ailing mutual fund sector vibrant by ensuring proper function of the mutual fund-related organisations, another BSEC official said.
In line with the commission’s previous actions, verifying assets of the mutual funds will help the commission to find out irregularities done by the mutual fund-related entities, he said.
After the market crash in 2010-2011most of the mutual funds failed to offer dividend to their unit holders that put a negative impact on the overall mutual fund sector.
Due to the investors’ negative perception about the mutual funds, most of funds are now trading at the stock exchanges below their net asset values per unit, he said.
The commission’s actions against the asset managers, trustee and custodians of the mutual funds might improve performances of the funds and restore investors’ confidence, he said.
As per the BSEC’s data, presently nine entities are functioning as custodian of the mutual funds.
The entities are Standard Chartered Bank, Hongkong and Shanghai Banking Corporation, Dhaka Bank, Southeast Bank, AB Bank, BRAC Bank, Citi Bank NA Bangladesh, Agrani Bank and Commercial Bank of Ceylon.
Seventeen asset managers are operating 41 mutual funds listed with the capital market.

 

HM Murtuza
A file photo shows the Bangladesh Securities and Exchange Commission headquarters in Dhaka. The BSEC has started scrutinising the assets of the mutual funds as the commission is suspecting unlawful use of the assets by some asset management companies. — New Age photo
A file photo shows the Bangladesh Securities and Exchange Commission headquarters in Dhaka. The BSEC has started scrutinising the assets of the mutual funds as the commission is suspecting unlawful use of the assets by some asset management companies. — New Age photo
The Bangladesh Securities and Exchange Commission has started scrutinising the assets of the mutual funds as the commission is suspecting unlawful use of the assets by some asset management companies.
In December last year, the capital market regulator issued letters to the custodians of mutual funds asking the entities to submit details of the MFs’ assets under their custody within January 20, 2015, a BSEC senior official told New Age.
The custodians were asked to submit data of the mutual funds as of December 30 last year, he said.
Custodian is a financial institution that holds customers’ securities for safekeeping so as to minimise the risk of their theft or loss.
Custodians are assigned in a mutual fund for ensuring security of the assets managed by the asset management companies.
There are complaints that the AMCs are misusing the assets of mutual funds in different forms, the official said.
Based on the complaints, the commission asked the custodians of the mutual funds along with the AMCs to submit details of the assets, he said.
‘The commission is now crosschecking the asset-related data of the mutual funds provided by the AMCs and the custodians, he said.
The commission in the last couple of years had taken several steps to make the ailing mutual fund sector vibrant by ensuring proper function of the mutual fund-related organisations, another BSEC official said.
In line with the commission’s previous actions, verifying assets of the mutual funds will help the commission to find out irregularities done by the mutual fund-related entities, he said.
After the market crash in 2010-2011most of the mutual funds failed to offer dividend to their unit holders that put a negative impact on the overall mutual fund sector.
Due to the investors’ negative perception about the mutual funds, most of funds are now trading at the stock exchanges below their net asset values per unit, he said.
The commission’s actions against the asset managers, trustee and custodians of the mutual funds might improve performances of the funds and restore investors’ confidence, he said.
As per the BSEC’s data, presently nine entities are functioning as custodian of the mutual funds.
The entities are Standard Chartered Bank, Hongkong and Shanghai Banking Corporation, Dhaka Bank, Southeast Bank, AB Bank, BRAC Bank, Citi Bank NA Bangladesh, Agrani Bank and Commercial Bank of Ceylon.
Seventeen asset managers are operating 41 mutual funds listed with the capital market.
   

   
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Beximco Pharma secures $51.6m from German bank

Daily Star - 29 January'2015 Thursday

Beximco Pharmaceuticals will borrow about $51.6 million from Frankfurt-based BHF-Bank Aktiengesellshaft to expand its production.
The local drug maker, a unit of business conglomerate Beximco Group, struck a loan deal with the German bank, according to a posting on the Dhaka Stock Exchange website yesterday.
Beximco Pharma has also received approval from the Board of Investment of Bangladesh to raise the fund, which will be utilised to partially finance a new plant and machinery purchase.
The loan will come at an interest rate of 2.25 percent a year in addition to Libor (London interbank offered rate), which is lower than the local interest rate. The loan will be guaranteed by Hamburg-based Euler Hermes, a German export credit agency.
“The loan, which is secured on the plant and machinery being purchased, will be drawn down in four tranches,” Beximco Pharma said. Repayment will be made over five years in 10 semi-annual installments.
The loan will have a significant impact on Beximco Pharma's balance sheet, BRAC-EPL Stock Brokerage said in an analysis.
As of September 30 last year, the company's total interest bearing debt was Tk 480 crore. Its debt-to-equity ratio -- a measure of financial leverage -- was 23.5 percent.

The foreign loans will nearly double the gearing of the company and lower the cost of debt significantly, BRAC-EPL said.
Over the past four years, the cost of debt averaged 16.1 percent while debt-to-equity averaged 22.7 percent. “The new loan, financed at a low single digit rate, will sharply reduce the financing cost of the company. Both a lower cost of debt and higher debt ratio will lower the weighted average cost of capital of Beximco Pharma,” it said.
Beximco Pharma has yielded a very low return on capital over the years, it added. “Return on invested capital has been only 7.5 percent on average in the past three years.
The low return is evident in the multiple in which the stock is trading in the market,” BRAC-EPL said.
Beximco Pharma's net profit rose to Tk 115 crore in the nine months through September last year from Tk 108 crore in the same period the previous year.
Each share of the drug maker listed in the stockmarket in 1986 traded between Tk 57 and Tk 58.6, before closing at Tk 57.3 on the Dhaka bourse yesterday.

Published: 12:00 am Thursday, January 29, 2015



Political turmoil biggest risk to stockmarket

Daily Star - 29 January'2015 Thursday

A survey by LankaBangla Securities says political tension will take a toll on foreign investment in capital market
Sarwar A Chowdhury
Political instability will be the biggest risk to the economy and the capital market this year, a recent survey found.
Half of the respondents in the survey, conducted by LankaBangla Securities between December 29 last year and January 10 this year, identified political turmoil as the biggest risk factor for the capital market as well as the overall economy in 2015.
Called the Bangladesh Capital Market Sentiment Survey 2015, the survey is now in its third year.
Some 101 people -- that include chief executive officers and managing directors of different financial and non-financial institutions, merchant bankers, fund managers, market analysts, issue managers, economists, academicians, stock traders and businesspeople -- responded to the survey this year.
Political instability was also identified by 57 percent of the respondents as the main reason for the low participation of foreign investors in the country's capital market.
The majority of the respondents expressed pessimism over the macroeconomic growth this year but expects a moderate bullish trend to prevail in the capital market.
A lack of investor confidence, weak regulatory framework and interventions through frequent policy changes by different regulators were also identified as risk factors to the local capital market, according to the survey.

In addition to political instability, a lack of corporate governance of listed companies and the low quality of stocks of a number of listed companies will also be responsible for the weak foreign investment in capital market.
The respondents were sceptic about the volume of market turnover: the majority -- 38 percent -- expects it to hover between Tk 500 crore and Tk 800 crore a day.
The majority -- 56 percent -- felt the demutualisation of the stock exchanges has made the market more transparent and vibrant.
Meanwhile, 82 percent of the participants said financial projection through equity research publications will improve their decision-making.
More than half of the respondents are expecting the fuel and power sector stocks to outperform the market this year, followed by pharmaceutical shares.
Some 48 percent thought the market was “too immature to absorb derivatives”.
On the macroeconomic front, the majority said GDP growth will decline and inflation will rise this fiscal year. They also think the Padma bridge project will not be completed within the stipulated time and that there is need for improvement with regards to the food safety scenario.
However, a bulk of the participants expects: the foreign direct investment to increase, borrowing to become cheaper, exchange rate to remain at the current level and the fall in crude oil prices in the international market to leave a positive impact on the economy.
Published: 12:00 am Thursday, January 29, 2015


Textiles, power, bank issues attract investors - Turnover still remains poor

FE Report - 29 January'2015 Thursday
Stocks returned to the red Wednesday after previous session's gain as investors' confidence remained shaky amid ongoing countrywide non-stop blockade.

DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down by 9.46 points or 0.19 per cent to close at 4,747.63 points after gaining 48 points in the previous session.

The DSE Shariah Index (DSES) dropped 1.84 points or 0.16 per cent to close at 1,122.32 points. However, the DS30 index, comprising blue chips managed to close positive with gaining 1.27 points or 0.07 per cent to close at 1,756.80 points.

Trading at DSE remained sluggish and total turnover amounted to Tk 2.35 billion, registering an increase of 9.30 per cent over the previous session's value of Tk 2.15 billion.

The investors' attention was mostly focused on textiles, power and banks - the sectors that accounted for 16.7 per cent, 13.4 per cent and 11.8 per cent respectively of the day's total turnover value.

"Investor's confidence remained shaky about the market perception in spite of some positive earnings declaration," said International Leasing Securities, in its daily market analysis.

The session's morning positive walk in indices with buying spree reverted into flat in red with selling pressure in the later part, said the International Leasing.

Meanwhile, several large-cap stocks witnessed price appreciation, but price fall in banks, fuel and power contributed to the index fall, it added.

"Small-cap stocks observed buying interest in market as some sector specific stocks drowned to lucrative buying price ranges. However, overall market remained sluggish," said LankaBangla Securities.

IDLC Investments said: "DSEX closed flat in red, amid day-long tug of war between bearish and opportunistic investors".

However, the session was asymmetric, with 171 issues declining, against advancement of 99 issues, said the merchant bank.

The large-cap sectors yield mix performance. Telecommunication and food and allied sectors gained 0.54 per cent and 0.27 per cent respectively.

Pharmaceuticals closed flat in green with 0.04 per cent gain. Fuel and power witnessed heavy loss of 0.66 per cent. In the financial sectors - banks and NBFIs lost 0.34 per cent and 0.47 per cent respectively.

The losers took a lead over the gainers out of 305 issues traded, 171 declined, 99 dvanced and 35 remained unchanged on the DSE floor.

Activities increased in the major bourse (DSE) where volume and trade were up by 3.67 per cent and 2.09 per cent respectively. A total number of 0.070 million trades were executed with trading volume of 62.42 million securities.

The market capitalisation on DSE stood at Tk 3,190.59 billion against Tk 3,192.48 billion in the previous session.

The newly listed C & A Textiles continued to dominate the top turnover chart with shares worth Tk 129.340 million changing hands followed by Altex Industries, CVO Petrochemical, Aamra Technologies and GP.

BSCCL was the day's top gainer, posting a rise of 9.96 per cent while Exim Bank First Mutual Fund was the day's worst loser, plunging 9.58 per cent.

The port city bourse, Chittagong Stock Exchange (CSE) also ended marginally lower with its Selective Categories Index - CSCX - lost 13.56 points to close at 8,800.97 points.

Losers beat gainers 121 to 76, with 29 issues remaining unchanged at the port city bourse that traded 6.60 million shares and mutual fund units, turnover value of Tk 190.32 million.

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Wednesday, January 28, 2015

Stocks end bearish jinx

FE Report - 28 January'2015 Wednesday
Stocks ended higher Tuesday after witnessing bearish sentiment in the last couple of session as bargain hunters took position on lucrative stocks, backed by some positive earnings declaration.

DSEX, the prime index of the Dhaka Stock Exchange (DSE) went up by 48.76 points or 1.03 per cent to close at 4,757.10 points amid ongoing countrywide non-stop blockade.

The two other indices also closed higher. The DS30 index, comprising blue chips gained 19.17 points or 1.10 per cent to close at 1,755.53 points. The DSE Shariah Index (DSES) rose 13.64 points or 1.22 per cent to close at 1,124.17 points.

Turnover remained sluggish and amounted to Tk 2.15 billion, registering an increase of 5.3 per cent over the previous session's value of Tk 2.04 billion.

The investors' attention was mostly focused on textiles, NBFIs and engineering - the sectors that accounted for 16 per cent, 12.4 per cent and 11.6 per cent respectively of the day's total turnover value.

"The bearish momentum in recent period amid gloomy economic outlook has created some stimulus of undervaluation, which to some extent induced the market participants to take position," observed International Leasing Securities in an analysis.

However, the investor's participation still remained weak with daily turnover settled at Tk 2.15 billion as there was no reason to believe that ongoing political flux is over soon, said the International Leasing.

IDLC Investments said: "Opportunistic bargain hunters gathered their strength and took control of the day's market, backed by some positive earnings declaration".

However, day's activities were cautious as evident by marginal improvement in turnover, said the merchant bank.

The port city bourse, Chittagong Stock Exchange (CSE) also closed higher with its Selective Categories Index - CSCX - gained 72.23 points to close at 8,814.54 points.

Gainers beat losers 151 to 56 with 23 issues remaining unchanged at the port city bourse that traded 7.40 million shares and mutual fund units, turnover value of Tk 215.11 million.

babulfexpress@gmail.com

BSRM IPO subscription begins Feb 1

FE Report - 28 January'2015 Wednesday
The initial public offering (IPO) subscription of Bangladesh Steel Re-Rolling Mills (BSRM) will begin from Sunday (February 1) to raise a fund worth Tk 612.5 million from the public, officials said.

IPO subscription of the Chittagong-based steel manufacturing conglomerate will remain open till February 5, 2015 for resident Bangladeshi and it will continue till February 14, 2015 for non-resident Bangladeshi (NRB).

In addition to the existing IPO application process, Bangladeshi nationals can also apply through their stockbroker/merchant bankers. However, non-resident Bangladeshi and foreign investors have to apply through the existing method.

The securities regulator - Bangladesh Securities & Exchange Commission (BSEC) approved the IPO proposal of Bangladesh Steel Re-Rolling Mills on December 9, 2014.

The Chittagong-based steel manufacturing conglomerate set to float 17.5 million ordinary shares at an offer price of Tk 35, including a premium of Tk 25 for each ten taka share. A market lot is 200 shares.

The company reported earnings per share, as of December 2013, stood at Tk 5.06 and net asset value per share Tk 52.09.

Alliance Financial Services is acting as issue manager of the initial public offering, the proceeds of which will be used for BSRM's ongoing expansion and loan repayment.

BSRM Steels, a unit of BSRM, is already listed on the stock market. On the premier bourse, each BSRM Steels share closed at Tk 82 each Tuesday, gaining 1.73 per cent over the previous session.

At present 28 companies listed in the engineering sector on the DSE, accounting for around 4.0 per cent of the total market capitalization of the DSE.

The BSRM started its journey in 1952, maintaining the leadership position in the steel industry by producing the best quality steel products, continuously enhancing customer satisfaction and becoming a reliable business partner of the customers and suppliers, according to the company's website.

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Applications for IPO through merchant banks, brokers mandatory from April 1

FE Report - 28 January'2015 Wednesday
The securities regulator has made the submission of application for IPO (initial public offering) shares through merchant banks and brokerage firms mandatory from April 1 this year instead of applying through banks.

The Bangladesh Securities and Exchange Commission (BSEC) Tuesday took the decision while approving the revised IPO application process.

At Tuesday's meeting, the securities regulator has also approved the conversion of ICB AMCL Islamic Mutual Fund (MF), a closed-end MF,  into open-end scheme--ICB AMCL Islamic Unit Fund.

Dhaka Stock Exchange (DSE) started to receive IPO applications through merchant banks and merchant banks on the basis of pilot project from July 15, 2011.

From April 1 next no application for IPO shares will be received by banks.

For completing the investors' IPO application process, merchant bankers and stock brokers will charge Tk 5.0 per application and the service charge will have to be paid by applicants while submitting application.

For the purpose of new IPO application process, the merchant bankers and stock brokers will have to maintain separate bank account namely 'Public Issue Application Account'.

Within the subscription period, the applicants, other than NRBs and foreign applicants, will submit application/instruction for the public issue of the securities to stock broker and merchant banker where they maintain BO (beneficiary owner's) accounts.

Application/instruction for public issue may be submitted in prescribed paper or electronic paper containing Customer ID, Name, BO Account Number, Number of Securities applied for, Total Amount and Category of Applicant.

Applicant shall make the application money available in respective customer account maintained with the stock broker or merchant banker provided that no margin facility, advance and deferred payment is permissible to apply for public issue.

Non-resident Bangladeshis (NRBs) and foreign applicants will have to submit bank drafts in favor issuer for an amount equivalent to application money.

After verifying applicant's available fund and accumulating all buy instructions, the merchant bankers and stock brokers will block customer account for an amount equivalent to application money and deposit the amount in the 'Public Issue Application Account' maintained with their banks.

Application money submitted by merchant banks and stock brokers against their own portfolios will also be transferred to 'Public Issue Application Account'.

Stock brokers and merchant bankers then will prepare the list of applicants and send it to the issuer within three working days from the date of subscription closing.

After receiving verification information from the Central Depository Bangladesh Limited (CDBL), the issuer will prepare the list of valid and invalid applications and submit the report to the commission and the stock exchanges within 10 working days from the date of receiving information from the exchanges. With next three days of reporting to the commission and exchanges, the issuer and issue manager will conduct category wise lottery.

Within two working days of posting the lottery results on the website of company, commission and exchanges, the issuer will send category wise lists of successful and un-successful applicants to the respective stock exchange.

On the next working day, the stock exchange will distribute the information and allotment letters among the stock brokers and merchant bankers with an instruction of remitting the amount of successful applicants to the issuer's Escrow Account and unlock the amount of unsuccessful applicants.

mufazzal.fe@gmail.com

Tuesday, January 27, 2015

Stocks end flat as investors stay wary

FE Report  - 27 January'2015 Tuesday

Investors' reluctance to inject fresh funds into markets left stocks flat yesterday, as investors remained wary of the economic fallout from the drawn-out political deadlock.
Political unrest took a heavy toll on the Dhaka Stock Exchange as its prime index -- DSEX -- hit a four-month low on Sunday. The market gauge closed at 4,708.33 points, after shedding 8.43 points or 0.18 percent yesterday.
The shariah index of the Dhaka bourse, DSES, fell 3.32 points or 0.29 percent, to close at 1,110.52.
The stock market started feeling the pinch of the nonstop blockade, enforced by the BNP, which has persisted for the last 21 days, as turnover fell amid poor market participation.
Turnover, the most important indicator of the market, declined 8.5 percent to Tk 204 crore, compared to the previous day.
The political situation has kept getting messier and is choking the economic system. Naturally, investors are looking around, watching out for the upcoming monetary policy statement, and to understand the central bank's response, said IDLC Investments.
Of the 307 issues that traded on the DSE, 129 advanced, 131 declined and 47 remained unchanged.

Among the major sectors information technology gained 1.62 percent in market cap followed by bank's 0.75 percent, pharma 0.47 percent and non-bank financial institutions 0.39 percent.
A total of 0.66 lakh trades were executed with 6.08 crore shares and mutual fund units changing hands on the Dhaka bourse.
C&A Textiles became the top turnover generator of the day with 65.85 lakh shares worth Tk 17.13 crore being traded, followed by Brac Bank, Grameenphone, National Feed Mill and Altex Industries.
Exim Bank First Mutual Fund was the highest gainer of the day with an 8.95 percent increase, while Northern Jute Manufacturing Company was the worst loser, plunging by 8.73 percent. 
Published: 12:00 am Tuesday, January 27, 2015

Stocks see marginal loss

FE Report - 27 Jnauary'2015 Tuesday
Dhaka stocks Monday closed with a marginal loss after the steepest fall observed in previous session amid mixed performance of major sectors, stock brokers said.

On the day the turnover value went down to 18-session low due to the sluggish trend observed throughout the session.

On Dhaka Stock Exchange (DSE), stocks started the session with a positive note and broad index DSEX rose around 30 points at 11.00 am.

Later in the session, the benchmark index failed to maintain its ongoing trend and at the end of the session the DSEX lost 0.17 per cent or 8.42 points to close at 4708.33 points amid volatility.

DSE Shariah Index shed 0.29 per cent or 3.32 points to close at 1110.52 points whereas DSE30 went down by 0.54 per cent or 9.44 points to close at 1736.36 points.

Among 307 issues traded, 111 advanced, 144 declined and remaining 52 remained unchanged.

At the end of the day's trading session, the turnover value stood at above Tk 2.04 billion which is 8.45 per cent less than the value observed in previous session.

"Though market tried to revert from the recent downtrend in the morning, the resistance broke away as the session passed, ultimately leaving the bourse un-rescued," said a market review of IDLC Investments.

It also said snail-paced activities failed to generate any handsome turnover which stayed barely over Tk 2.0 billion.

Another stock broker BRAC EPL said trading at DSE continues the sluggish trend amid political instability.

C & A Textile Monday ensured its position in the top of the list of most performing stocks for the third consecutive session with a value of Tk 171.33 million followed by BRAC Bank Tk 97.13 million, Grameenphone Tk 80.05 million, National Feed Mill Tk 62.58 million, Lafarge Surma Cement Tk 47.79 million, DESCO Tk 46.16 million and Summit Alliance Port Tk 44.17 million.

Among the major sectors, Telecommunications posted the highest loss of the session declining by 2.91 per cent followed by Food and Allied 0.19 per cent, Cement 0.01 per cent and Power 0.05 per cent.

Banks and NBFIs, however, rose 0.75 per cent and 0.56 per cent respectively.

EXIM Bank 1st Mutual Fund topped the chart of apex gainers with a rise of 8.96 per cent whereas Northern Jute Manufacturing was the day's worst loser with a fall of 8.73 per cent in market price.

On Chittagong Stock Exchange (CSE), the benchmark index CSE shed 26.08 points to close at 14424.38 points.

Among 231 issues traded, 77 advanced, 125 declined and remaining 29 remained unchanged.

At the end of the session, the turnover value stood at Tk 202.86 million on the port city bourse.

    mufazzal.fe@gmail.com

BSEC to formulate 'commodity exchange' rules - Infrastructure dev the key issue

FE Report - 27 Jnauary'2015 Tuesday
Yasir Wardad
The Bangladesh Securities and Exchange Commission (BSEC) has moved forward to formulate rules to open 'commodity exchange' in the country for the first time.

A committee of BSEC has submitted two reports to the commission in this regard which may help accelerate the process to formulate commodity and exchange rules very soon, officials said.

Experts and private investors urged for formulating rules as soon as possible to launch commodity exchanges in Bangladesh to boost trade of agricultural produces in the country.

A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity exchanges across the world trade in agricultural products and other raw materials like wheat, jute, sugar, maize, cotton, oil, metals, etc and contracts based on them.

These contracts can include spot prices, forwards, futures and options on futures. Commodities exchanges usually trade futures contracts on commodities, such as trading contracts.

In 2013, two companies took initiative to open commodity exchanges in Bangladesh with permission from the Textile and Jute Ministry.

"But BSEC did not permit them in absence of rules in this regard", Md Saifur Rahman, executive director of the capital market regulator said.

 "As per the amended Securities and Exchange Act, the commission only preserves the right to allow any organisation to conduct commodity exchange service", he said.

The commission had no rules in this regard so it took the issue with due importance and moved to formulate rules, he said.

A three member committee headed by BSEC executive director Mahbubul Alam, visited Indian commodity exchanges and their regulator two times, he said.

"The committee submitted its primary report on the first quarter and final report on the last quarter of 2014", he said.

The BSEC will formulate rules based on the report and experts' advices very soon, he said.

Another official of BSEC, requesting anonymity said Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) have also urged for opening commodity exchange.

Managing director of Chittagong Stock Exchange (CSE) Wali-ul-Maroof Matin, a cognoscente of this concept in Bangladesh said formulating rules and regulations is not big problem.

He said infrastructure development is the key issue in this regard.

"A commodity exchange might need huge investments. We can start it in both the public and private sectors," Wali-ul-Maroof said.      

"Bangladesh Jute and Commodity Exchange Ltd (BJCE), an initiative of Deshbandhu Group was first of its kind in the country which was near to open a jute exchange from 2013 jute season in five districts in pilot basis", commodity exchange expert Habib Rahman said.

Pride Group, a Dubai-based multinational company, which has experiences in 14 countries in this regard, became partner of BJCE, said Mr Habib, who was a former chief investment officer at Deshbandhu Group.

"The Pride Group provided all technical supports to use their software," he said.

"Mr Golam Mostafa, chairman of Deshbandhu Group has a target to open a commodity exchange in Bangladesh as like as the East India Jute and Hessian Exchange Ltd in Kolkata" he said.

He said all formalities were completed, 25 warehouses were established in five districts in Shariyatpur, Madaripur, Pabna, Faridpur and Rajbari.

He said an 'integrated warehouse network' (IWN) is key precondition for commodity exchange.

BJCE had a target to establish an IWN to boost agri trade in the country, said Mr Habib, now working as the head of syndication and structured finance at The Premier Bank Ltd.

An official at Deshbandhu Group said BJCE has withheld the initiative temporarily and is now waiting for the formulation of rules by the BSEC.

However, another company Popular Jute Exchange Ltd also took move to open commodity exchange in November 2013, according to BSEC.

Agro economist ASM Golam Hafiz Kennedy told the FE that neighbouring India has 6 national and 16 regional commodity exchanges.

"India has also a separate regulator in this regard", he said.

He said export, import and local trading have increased manifold in last three decades in Bangladesh.

The country now exports agricultural products (food and cash crops) worth US $1.6 billion annually. "So, it is a demand of time to open commodity exchanges in Bangladesh. Indian experience will be very helpful to run such exchanges in Bangladesh," he said.

tonmoy.wardad@gmail.com

Trading of all kinds of treasury bonds allowed

FE Report - 27 Jnauary'2015 Tuesday
The securities regulator has abolished its previous directive on listing of only 5-year and 10-year Treasury Bonds paving the way of listing, trading and spot settlement of all kinds of treasury bonds, officials said.

The Bangladesh Securities and Exchange Commission (BSEC) said this in a directive issued Sunday. It was signed by BSEC Chairman Professor K Khairul Hossain.

"BSEC considers it to be expedient in the interest of capital market and investors in securities, certain previous directive on listing as well trading and settlement of 5-year and 10-year Bangladesh Govt. Treasury Bond, should be repealed," the BSEC's directive said.

"Now, therefore, in exercise of power conferred by section 20A of the Securities and Exchange Ordinance, 1969, the commission hereby repeals its directive issued on December 19, 2004," the BSEC directive added.

Officials of Dhaka Stock Exchange (DSE) said the premier bourse so far gave listing to all kinds of treasury bonds and internally created the facility of their trading and spot settlement although previous directive only spoke for listing of two kinds of bonds.

"Due to Next Generation Automated Trading launched recently, trading and spot settlement of Treasury Bonds has become easier. That's why the securities regulator Sunday formally lifted the bar of listing, trading and spot settlement of Treasury Bonds issued for any tenure," the DSE official said.

Presently, there are 221 Treasury Bonds listed with the premier bourse.

mufazzal.fe@gmail.com

Friday, January 23, 2015

ICB face value to be changed

FE Report - 23 January'2015 Friday

Investment Corporation of Bangladesh has informed that the Board of Directors of the company has decided to change the denomination of share (face value) of the company to Tk. 10.00 from existing face value of Tk. 100.00 each. The record date has been fixed on February 3, 2015 to change the denomination of share, said a DSE Online news.

Power Grid for enhancing manufacture of quality equipments

FE Report - 23 January'2015 Friday

The Power Grid Company of Bangladesh Ltd (PGCBL) has called for enhancing local manufacture of quality power equipments and accessories, required for developing the transmission sector, in order to reduce dependence on foreign countries.

"Required manpower for power system operation and development is being imparted in the country, but equipments and other accessories for development of transmission sector are not being manufactured in a mentionable quantity locally," Md. Abul Kalam Azad, chairman of PGCBL, said.

One or two manufacturers have started producing 132/33kV transformer and tower members of transmission line in recent years, but other equipments including insulators and conductors of transmission line are imported, said Mr Azad, on behalf of the board of directors, at the PGCBL Annual Report 2013-14.

The public limited company is responsible for operation, maintenance and development of the transmission system and distribution of generated electricity in the country.

In the light of the Power System Master Plan, PGCBL has set its long term plan to develop transmission system infrastructure to supply electricity all over the country by 2021.

To accommodate the future growing power demand, the company took up many development plans for strengthening transmission system, as per the report.

During the fiscal year 2013-14, significant transmission infrastructures were added to the system because of the completion of different project works. As of June 30, 2014, 400 kV 164.70 circuit km, 230 kV 23.93 circuit km and 132kV 40 circuit km transmission lines were increased from that of the previous year.

Especially, the Bangladesh-India grid interconnection project from Bheramara of Bangladesh to Baharampur of India and Meghnaghat-Aminbazar 400 kV transmission lines were completed, it said.

However, the PGCBL in the year 2013-14 confronted a loss of Tk 29.70 million after tax. The trend of profit during last few years has not been achieved. During the year, cost of eight development project transferred from work in progress to fixed assets consequently expenditure of depreciation and interest increased very high.

Citing that it applied to the Bangladesh Energy Regulatory Commission (BERC) in August 2014 to increase the wheeling charge, Mr Azad said that financial weakness of PGCBL will be converted to strength when the wheeling charge will be increased.

"The stability in political arena is very much necessary to maintain expansion of the company as well," the PGCBL chairman.

Incorporated in 1996, the PGCBL was listed with the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on October 9, 2006.

Its authorized capital is Tk 10 billion while paid up capital is Tk 4,609.13 million.

In the fiscal year 2013-14, the company's turnover was Tk 8,671.76 million and net profit before tax and WPPF was Tk 570.84 million.

As on June 30, 2014, there were 2,302 persons employed at the power grid company.

It transmission lines as on June 30, 2014 are 400 kV 164.70 circuit km, 230 kV 3,044.70 circuit km and 132kV 6,120 circuit km.

md.ali.du@gmail.com

Stocks bounce back on week's closing session - DSE urges Central Bank to play supportive role

FE Report - 23 January'2015 Friday

Dhaka stocks bounced back Thursday, the week's last trading session, after the fall observed in previous four consecutive sessions amid mixed performance of major sectors such as banks and non-banking financial institutes.

On the day all indices rose marginally although the turnover value declined a little bit on Dhaka Stock Exchange (DSE).

On the port city bourse--Chittagong Stock Exchange (CSE), all market barometers also rose as majority number of listed securities ended in green.

On Thursday, Benchmark index DSEX rose 0.31 per cent or 14.74 points to close at 4797.95 points on Dhaka bourse.

DSE Shariah Index went up by 0.17 per cent or 1.98 points to close at 1136.33 points whereas DSE30 also rose 0.22 per cent or 4.03 points to close at 1778.80 points.

Among 306 traded issues, 172 advanced, 85 declined and remaining 49 remained unchanged.

At the end of the day's trading session, turnover value stood at above 2.23 billion which is 20.87 per cent less than the value observed in previous trading session.

C & A maintained to secure top spot in the list of most traded stocks for the third consecutive session with a value of Tk 119.37 million followed by Lafarge Surma Cement Tk 76.61 million, National Feed Mill Tk 68.08 million, IDLC Tk 62.54 million, Western Marine Shipyard Tk 54.45 million, Grameenphone Tk 52.80 million, BRAC Bank Tk 52.34 million, Summit Alliance Port Tk 50.24 million, BEXIMCO Tk 44.02 million and Envoy Textile Tk 40.67 million.

C & A also topped the chart of top 10 gainers with a rise of 19.09 per cent in market price whereas Pragati Life Insurance was the day's worst loser with a fall of 4.12 per cent in market price.

On Chittagong Stock Exchange (CSE), benchmark index CASPI rose 70.84 points to close at 14730.02 points.

Among 220 traded issues, 130 advanced, 59 declined and remaining 31 remained unchanged.

At the end of the day's trading session, the turnover value stood at Tk 264.16 million on the port city bourse.

Meanwhile, DSE urged the central bank for playing more market supportive role.

The premier bourse made the plea in a letter signed by DSE managing director Dr. Swapan Kumar Bala and sent to the central bank and the securities regulator on January 19 last.

When contacted, Mr. Bala confirmed the FE about the issue of letter.

Mr. Bala, however, was not able to specify the demands mentioned in the letter as he was busy at that moment. He, however, said the DSE demanded more support from the central bank.

The official sources said the DSE requested the central bank to widen banks' investment scope into the capital market.

The DSE Thursday said on its website that category of Shurwid Industries has not yet been changed as any court order regarding the status of holding of AGM (annual general meeting) is yet to be received by the exchange.

According to DSE, the company applied for changing its category as 15 per cent bonus dividend was credited through CDBL on January 20, 2015 for the year 2014.

mufazzal.fe@gmail.com

Stocks return to black despite political chaos

Daily Star - 23 January'2015 Friday

Investors somewhat shook off pessimism inflicted by the nonstop blockade to buy stocks back to black yesterday, breaking a four-day losing streak.

DSEX, the benchmark general index of the Dhaka Stock Exchange, rose 14.74 points or 0.31 percent, to close at 4,797.96.

The shariah index of the Dhaka bourse, DSES, gained 1.98 points or 0.17 percent, to close at 1,136.34.
The BNP-led alliance's blockade that continued for the 17th day led many investors to place buy orders through mobile phone.

However, poor turnover showed that the ongoing political crisis has dented investor confidence.
Turnover, the most important indicator of the market, declined 20.9 percent to Tk 223 crore, compared to the previous day, the lowest in the last fortnight.

Buyers gained some pace after last four trading sessions closed red, said LankaBangla Securities.

However, market sentiments remained shaky as investors have not yet digested the political jolts fully, the stockbroker said.

The market took a pause after a streak of brutal selloffs, while majority of the investors preferred staying on the sidelines to assess market sentiments, said IDLC Investments.

Among the major sectors: banks reverted with 0.38 percent gains in market cap followed by fuel and power's 0.42 percent, textile 1.22 percent and pharma 0.44 percent.

Gainers outnumbered losers as 180 advanced,           89 declined and 37 issues remained unchanged on the DSE.

C&A Textiles became the top turnover leader for the second day with 50.06 lakh shares worth Tk 11.94 crore being traded, followed by Lafarge Surma Cement, National Feed Mill, IDLC Finance, Western Marine Shipyard, Grameen-phone and Brac Back.

The textile maker also became the top gainer of the day with 19.09 percent gain, while Pragati Life Insurance was the worst loser, plunging by 4.12 percent.

The Chittagong bourse's CSCX index gained 39.26 points to 8,924.84. Only 130 issues advanced, 59 declined and 31 remained unchanged on the port city bourse.A total of 83.76 lakh shares and mutual fund units traded on the CSE, generating Tk 26.41 crore in turnover.

Published: 12:00 am Friday, January 23, 2015

Thursday, January 22, 2015

Dhaka stocks decline for 4th trading session Prices of 248 out of 309 shares fall

New Age - 22 January'2015 Thursday



Dhaka stocks declined sharply for the fourth trading session on Wednesday as investors fearing further fall in share prices sold bulk amount of shares amid continuing political deadlock.
The key index of Dhaka Stock Exchange, DSEX, plunged to one-and-half month low of 4,783.21 points after 4,769.42 points on November 30 last year.
DSEX on the day fell by 1.51 per cent or 73.73 points.
Wednesday’s fall in indices was the highest single-day fall after the decline of 109 points on October 19 last year.
Share prices of almost all out of the traded 309 shares and mutual funds fell on the day. Prices of 36 scrips advanced, 248 declined and 25 remained unchanged.
Turnover of the bourse, however, increased to Tk 281.92 crore on Wednesday compared with that of Tk 247.17 crore in the previous trading session.
Stockbrokers said that investors from the beginning of the session opted to sale shares indiscriminately amid fear of further fall in share prices and as a result the key index of the bourse declined to 4,752.59 points at 1 : 23pm and closed at 4,783.21 points.
Investors became panicky as they found no hope of improvement in the political situation and countrywide agitation, they said.
As both the political alliances remained rigid in their stance, they feared it would lead to prolonged political confrontation.
‘The market saw panic-shaken free-fall during today’s session as the bourse lost 104.4 points by the mid-day,’ IDLC Investments said in its daily market commentary.
‘However, the benchmark index recovered slightly and finally the broad market settled at 4,783.2, losing a total of 73.7 points by day end,’ it said.
‘Turnover improved to BDT 2.8 billion as investors tried to minimize their loss amid fear of further plunge,’ said IDLC.
DS30, the blue-chip index of DSE, fell by 1.51 per cent, or 27.30 points, to close at 1,774.77 points on the day.
The Shariah index of the bourse, DSES, dropped to 1,134.35 points, declining 1.39 per cent or 16 points.
‘It was another tough day for stocks. Since the opening of this week, Motijheel Street has been observing steep fall index,’ LankaBangla Securities said in its daily market analysis.
‘Fears over impact of prolonged political unrest might be the reason behind the ongoing skid in stocks,’ it said.
C&N Textiles in its debut trading at the bourse on the day traded the most with a-120 per cent increase in share prices. Shares worth Tk 42.55 crore of C&A traded on the day.
Lafarge Surma Cement, National Feed Mill, Grameenphone, Envoy Textiles, BEXIMCO, Western Marine Shipyard, Agni Systems, BRAC Bank and Beximco Pharma were among other turnover leaders.
National Feed Mills lost the most with a 12.99 per cent decline in share prices after a bouncy debut on Monday.
Meanwhile, Bangladesh Capital Market Investors’ United National Alliance on the day submitted a set of proposals to the Bangladesh Securities and Exchange Commission demanding initiatives to stabilize the market condition.