Friday, December 11, 2015

Stocks inch down for fourth session amid volatile trading

New Age - 11 December'2015 Friday


Dhaka stocks inched down for the fourth trading session on Thursday, the last trading session of the week, amid volatile trading as many of the investors continued to remain on the sideline ahead of winding up of two mutual funds and year-end share sales by the institutional investors.
The key index of Dhaka Stock Exchange, DSEX, closed at 4,583.41 points, shedding 0.08 per cent, or 3.95 points.
Turnover of the bourse also declined to Tk 374.34 crore compared with that of Tk 381.41 crore in the previous trading session.
Stocks finished flat on Thursday amid volatility throughout the session. DSEX, after remaining on the positive territory for the first 45 minutes of trading, turned negative shedding 15 points at 11:25 AM.
Afterward, DSEX turned positive twice, but finished negative as investors remained shaky ahead of winding up process of AIMS of Bangladesh run two mutual funds — AIMS First Mutual Fund and Grameen Mutual Fund One — and year-end-centric portfolio adjustment by institutional investors, stockbrokers said.
Investors were apprehending that the market may face increased share sales pressure as part of liquidation process of two AIMS-run MFs within December 31 this year, they said.
Considering the latest net asset value per unit of Tk 26.57 and 8,99,95,570 number units of AIMS First Mutual Fund, the fund size of the Mutual Funds stands at Tk 239.12 crore, while the total fund size of Grameen Mutual Fund One stands at Tk 106.05 crore considering 4,16,05,054 number of units and NAV per unit of Tk 25.49.
According to securities rules related with winding up of MFs, the asset managers of the funds have to liquidate the funds for pay-off money against investors’ units considering NAV per unit.
DS30, the blue-chip index of DSE, inched down to 1,741.09 points, shedding 0.16 per cent or 2.85 points.
The Shariah index of the bourse, DSES, however, closed at 1,105.36 points, adding just 0.06 per cent or 0.58 points.
‘The last trading session of the week ended amid surge of volatility, with equally powerful buyers and sellers implementing their own strategies,’ IDLC Investments said in its daily market commentary.
‘While some investors were seen to opt for quick gains, others took the advantage of depressed scrips prices to remold their portfolio,’ it said.
‘DSE stocks opened moderately higher and thrust the benchmark index close to 4600 mark, however it failed to sustain above at that level at the end of the day,’ LankaBangla Securities said in its daily market report.
‘Many of the major sectors ended the day showing only modest moves, contributing to the lackluster performance of the market,’ it said.
Beximco Pharma led the turnover chart on the day as its shares worth Tk 13.09 crore changed hands.
Delta Life Insurance, Square Pharma, Al-Haj Textile, Aftab Automobiles, BSRM Steels, KDS Accessories, Quasem Drycells, United Power Generation and Distribution Company and Shasha Denims were among other turnover leaders.
GQ Ball Pen gained the most on the day with a 8.35 per cent increase in its share prices, while Envoy Textiles was the worst loser of the day, shedding 7.95 per cent.

 

24 financial orgs, NGOs get ICAB awards for best annual reports

New Age - 11 December'2015 Friday


Staff Correspondent 
 02

The Institute of Chartered Accountants of Bangladesh awarded the 15th ICAB National Award to 24 banks, non-banking financial institutions, insurance companies and non-governmental organisations for their best presented annual reports 2014 on Thursday, said a news release.
Seven organisations won the certificates of merit.
Finance minister AMA Muhith handed over the awards to the recipients as chief guest at a ceremony arranged by the ICAB at the Bangabandhu
International Convention Centre in the capital. Commerce minister Tofail Ahmed graced the occasion as special guest.
Muhith said that credible information in financial statements and reports is prerequisite for development of business of the country. ICAB have
to play very crucial role in ensuring credible information which would benefit the users of the financial statements, he added.
Tofail said the best corporate reports would have surely reflected the accountability of the corporate management and credible financial information, which would create the corporate environment more congenial to foreign and local investment.
The award-giving ceremony was addressed, among others, by Masih Malik Chowdhury, president of the ICAB, and Abbas Uddin Khan, chairman of the review committee for published accounts and reports, ICAB.
The award was given in nine separate categories for preparing and publishing their annual reports 2014. ICAB gives the award annually since 2001.
Abbas said it was pertinent to mention that organisations adjudged 1st, 2nd and 3rd for having the best of the best annual reports for the financial year 2014 were also nominated for SAFA forum in recognition of their excellence and meaningful reporting.
- See more at: http://newagebd.net/183296/24-financial-orgs-ngos-get-icab-awards-for-best-annual-reports/#sthash.cMce2K36.dpuf

 

Staff Correspondent
02The Institute of Chartered Accountants of Bangladesh awarded the 15th ICAB National Award to 24 banks, non-banking financial institutions, insurance companies and non-governmental organisations for their best presented annual reports 2014 on Thursday, said a news release.
Seven organisations won the certificates of merit.
Finance minister AMA Muhith handed over the awards to the recipients as chief guest at a ceremony arranged by the ICAB at the Bangabandhu
International Convention Centre in the capital. Commerce minister Tofail Ahmed graced the occasion as special guest.
Muhith said that credible information in financial statements and reports is prerequisite for development of business of the country. ICAB have
to play very crucial role in ensuring credible information which would benefit the users of the financial statements, he added.
Tofail said the best corporate reports would have surely reflected the accountability of the corporate management and credible financial information, which would create the corporate environment more congenial to foreign and local investment.
The award-giving ceremony was addressed, among others, by Masih Malik Chowdhury, president of the ICAB, and Abbas Uddin Khan, chairman of the review committee for published accounts and reports, ICAB.
The award was given in nine separate categories for preparing and publishing their annual reports 2014. ICAB gives the award annually since 2001.
Abbas said it was pertinent to mention that organisations adjudged 1st, 2nd and 3rd for having the best of the best annual reports for the financial year 2014 were also nominated for SAFA forum in recognition of their excellence and meaningful reporting.
- See more at: http://newagebd.net/183296/24-financial-orgs-ngos-get-icab-awards-for-best-annual-reports/#sthash.cMce2K36.dpuf

Thursday, December 10, 2015

Shajahanullah Power, United Ashuganj to be merged with United Power Generation

FE Report - 10 December'2015 Thursday
An EGM of United Power Generation & Distribution Company Ltd (UPGDCL) recently approved a scheme of amalgamation of Shajahanullah Power Generation Company Ltd. (SPGCL) and United Ashuganj Power Ltd. (UAPL) with UPGDCL.

SPGCL is a 28 MW gas fired commercial IPP located at Kumargaon, Sylhet and UAPL is a 53 MW Quick Rental Power Plant at Ashuganj, Brahmanbaria.

 "All shareholders and creditors of the company were informed that this amalgamation will transform UPGDCL and along with it, the Transferor Companies, UAPL and SPGCL into sound and healthy enterprises both technically and financially in terms of assets base, revenue and profit and also in terms of optimization of shareholders' return," a statement of United Power Generation said.

The amalgamation will increase profit, revenue and assets. Furthermore, the Company's revenue and profitability will be raised substantially.

Analyzing the financial statements of the three companies, the financial benefits of this amalgamation will also result in increasing the total power generation capacity by 50 per cent (from 160 MW to 240 MW), total assets by approximately 51 per cent, the revenue by around 25 per cent, the net profit by approximately 23 per cent and the earnings per share by approximately 22 per cent.

In addition to benefitting the Company, financially, the amalgamation will also introduce operational advantages.

The amalgamation will generate cost efficiency through economies of scale, thereby enhancing revenue through gain in market share while leading to a reduction in cost of capital and cost per unit of production. It will also rationalize overheads, ensure optimum utilization of spares and proper utilization of human resources resulting in a greater operational efficiency of the Company.

Moreover, the companies being amalgamated will have common supervisory management, fundamental management philosophies and corporate values. Hence the amalgamation will bring in further integration in philosophies, values and strategies to increase total shareholders' return.

The transferor companies are presently in a solvent position and the merged company would emerge stronger, enabling it to meet any liabilities, if at all, in the normal course of business. All the creditors and employees of the companies were assured that the amalgamation will neither affect the interest of the stakeholders/ lenders/creditors nor have any adverse impact on the employees as they will continue to enjoy the same benefits in the merged company that they are presently enjoying. - See more at: http://old.thefinancialexpress-bd.com/2015/12/10/123939#sthash.ogQ3VpYN.dpuf


An EGM of United Power Generation & Distribution Company Ltd (UPGDCL) recently approved a scheme of amalgamation of Shajahanullah Power Generation Company Ltd. (SPGCL) and United Ashuganj Power Ltd. (UAPL) with UPGDCL.

SPGCL is a 28 MW gas fired commercial IPP located at Kumargaon, Sylhet and UAPL is a 53 MW Quick Rental Power Plant at Ashuganj, Brahmanbaria.

 "All shareholders and creditors of the company were informed that this amalgamation will transform UPGDCL and along with it, the Transferor Companies, UAPL and SPGCL into sound and healthy enterprises both technically and financially in terms of assets base, revenue and profit and also in terms of optimization of shareholders' return," a statement of United Power Generation said.

The amalgamation will increase profit, revenue and assets. Furthermore, the Company's revenue and profitability will be raised substantially.

Analyzing the financial statements of the three companies, the financial benefits of this amalgamation will also result in increasing the total power generation capacity by 50 per cent (from 160 MW to 240 MW), total assets by approximately 51 per cent, the revenue by around 25 per cent, the net profit by approximately 23 per cent and the earnings per share by approximately 22 per cent.

In addition to benefitting the Company, financially, the amalgamation will also introduce operational advantages.

The amalgamation will generate cost efficiency through economies of scale, thereby enhancing revenue through gain in market share while leading to a reduction in cost of capital and cost per unit of production. It will also rationalize overheads, ensure optimum utilization of spares and proper utilization of human resources resulting in a greater operational efficiency of the Company.

Moreover, the companies being amalgamated will have common supervisory management, fundamental management philosophies and corporate values. Hence the amalgamation will bring in further integration in philosophies, values and strategies to increase total shareholders' return.

The transferor companies are presently in a solvent position and the merged company would emerge stronger, enabling it to meet any liabilities, if at all, in the normal course of business. All the creditors and employees of the companies were assured that the amalgamation will neither affect the interest of the stakeholders/ lenders/creditors nor have any adverse impact on the employees as they will continue to enjoy the same benefits in the merged company that they are presently enjoying.


BSEC forms probe body on CSE MD’s resignation

FE Report - 10 December'2015 Thursday


The securities regulator has formed a three-member panel to investigate the reason of resignation of the managing director of the Chittagong Stock Exchange (CSE), officials said.

The Bangladesh Securities and Exchange Commission (BSEC) formed the body on Tuesday headed by BSEC executive director Mohammad Saifur Rahman, which will have to submit report within next seven working days.

The other members of the probe body are BSEC director Sheikh Mahbub Ur Rahman and Md. Mansur Rahman.

When asked, Saifur Rahman said, they will submit the report within stipulated timeframe.

The securities regulator also asked the CSE to continue his (CSE managing director) regular activities until completion of the investigation processes.

On November 30, CSE managing director Wali-ul-Maroof Matin submitted his resignation letter to the CSE chairman and the securities regulator, two years ahead of his tenure's expiry, mentioning internal conflict.

Mr Matin, who took charge on December 1, 2014 for three years, cited "irreconcilable differences with a few unduly decision-influencing persons in the organisation" as the reason behind his resignation.

On December 6, a member of the CSE's board said preferring anonymity that their managing director had withdrawn his previous resignation letter which was submitted by mentioning some reasons.

By withdrawing his previous resignation letter, the CSE managing director submitted a fresh resignation letter mentioning 'personal ground' and the CSE board accepted his fresh resignation, said the CSE board member.

Then the CSE submitted the resignation letter to the BSEC.

As the securities regulator received two type resignation letters cited different reasons, the BSEC decided to investigate the matter.

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Stocks extend losing spell for third day Turnover falls 4.27pc on prime bourse

FE Report - 10 December'2015 Thursday


Stocks edged lower for the third straight session Wednesday, with turnover falling further, as most of the investors followed cautious stance.

The market passed a volatile session, with DSEX crossing 4,600 points 'psychological' level several times during the early hours of trade. However, sell-offs of large-cap stocks dragging the market down.

At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 6.11 points or 0.13 per cent to settle at 4,587.37, after witnessing volatility throughout the session.


The DS30 index, comprising blue chips, fell 5.29 points or 0.30 per cent to finish at 1,743.94. The DSE Shariah Index (DSES) lost 1.79 points or 0.16 per cent to end at 1,104.77.

The market participation also remained depressive with a total came down to Tk 3.81 billion, which was 4.27 per cent lower than the previous session's Tk 3.98 billion.

The investors mostly focused on engineering, pharma and power - the sectors that accounted for 24 per cent, 17 per cent and 10 per cent of the day's total turnover.

"Benchmark index was little changed with continual fall in market turnover value for the fourth consecutive session in DSE," said LankaBangla Securities, stockbroker, in its regulator market analysis.

"The market selling looks like it is getting exhausted for the moment as large numbers of the previous sellers seems to capitulate and sell even at bargain levels," said the stockbroker.

All the major sectors saw mix performance as group of buyers came to take position on prospective stocks, said the stockbroker.

IDLC Investments, a merchant bank, said, price fall of large-cap stocks like GP, Titas Gas and Brac Bank continued to exert downward pressure on the market, dragging the index down.

"Lack of confidence in the minds of the investors created choppy trading in the bourse," said International Leasing Securities, a stockbroker.

Profit booking sell pressure continued mostly in the telecommunication, cement and bank sector while several issues mostly from small-cap issues witnessed buoyancy, said the stockbroker.

The port city bourse Chittagong Stock Exchange (CSE) also closed marginally lower with its Selective Categories Index - CSCX - shedding 15.71 points to end at 8,518.76.

Losers beat gainers 117 to 97, with 41 issues remaining unchanged on the port city bourse that traded 9.15 million shares and mutual fund units with a value of Tk 272 million.

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