Friday, July 17, 2015

Happy Eid Ul Fitr


Wednesday, July 15, 2015

GP declares 80pc interim dividend

FE Report-15 July'2015 Wednesday
The Board of Directors of Grameenphone has declared interim dividend in cash at the rate of 80 per cent of the paid up capital (BDT 8 per share of BDT 10 each) for the year 2015 out of the provisional net profit of the company for the half year ended on 30 June, 2015 and retained earnings up to 31 December, 2014.

"This dividend represents 103 per cent of the after tax profit for the half year ended on 30 June, 2015.  The shareholders as of the record date of 29 July, 2015 will be entitled for this dividend, which will be distributed within the timeframe stipulated by the regulators," a statement of the company said Tuesday.

It said Grameenphone Ltd reported revenue of BDT 51.5 billion for the first half of 2015, up 0.7 per cent from the same period last year. Service revenue (excluding IC) grew by 0.2 per cent (YoY) along with 2.9 per cent (YoY) de-growth in device and 13.8 per cent (YoY) growth in other revenues mainly generated by infrastructure sharing and mobile financial services. Growth in service revenue was mainly driven by data and VAS.

During this first half of 2015, GP acquired 1.6 million new subscriptions, taking the year-end subscription base to 53.1 million. This constitutes 7.9 per cent subscription growth (YoY) with SIM market share of 41.9 per cent(as of May'15). Data subscriber number stood at 13.4 million with encouraging volume growth.

ACMD course on 'Capital Market Research' begins July 31

FE Report - 15 July'2015 Wednesday
Accounting for Capital Market Development in Bangladesh (ACMD) will conduct a training programme on 'Capital Market Research'.

The program will start on July 31.

All the training sessions will be held on Fridays and from 9:00 AM to 12:00 PM in the Meeting Room of the Faculty of Business Studies, University of Dhaka.

ACMD is a research project administered under the Academic Innovation Fund (AIF) of the University Grants Commission (UGC) of Bangladesh and the World Bank.

The training programme is designed for corporate executives, financial analysts, academics and capital market journalists who are doing research on capital market or planning a career in financial markets.

The programme is comprised of fourteen (14) modules. Each module will represent a well-defined research problem and combine both concepts and their empirical relevance for investing in securities listed in Bangladesh stock exchanges. Each module will be of three-hour (03) duration. Instructors will make presentation on selected topics explaining concepts, underlying methodologies, findings and their implications for investors and policy makers.

Handouts and reading materials will be provided to the participants reasonably ahead of the scheduled event. Prominent academics and practitioners who bear proven expertise on capital market will be included in a panel of resource persons.

The modules  to be covered during the training sessions include understanding financial statements for investment decisions, financial statement analysis and prediction of future returns, determinants of P/E and P/B multiples and their relevance for investment decisions, cash accounting versus accrual accounting and reconciling earnings, dividends  and free cash flows, equity valuation model, equity valuation models applications for IPOs and listed equities, debt, taxes, dividend policies and their implications for stock prices, capital structure.

raihanmchowdhury@gmail.com

DSE restructures two price indices

FE Report - 15 July'2015 Wednesday
The Dhaka Stock Exchange (DSE) Tuesday restructured two price indices and added two companies to the benchmark index, DSEX, as part of its quarterly and semi-annual rebalancing of indices.

The premier bourse reconstituted the indices in accordance with DSE Bangladesh Index Methodology, which was designed by S&P Dow Jones Indices, a global leader in providing investable and benchmark indices to the financial markets. The methodology is also being supervised by an indices committee of the DSE.

Two companies, Shasha Denim and Bangladesh Steel Re-Rolling Mills have met all criteria of quarterly IPO addition and qualified as eligible constituents of DSEX that will be effective from July 21, the DSE said in a statement.

With the inclusion of Shasha Denim and Bangladesh Steel Re-Rolling Mills, the DSEX will have 244 companies from July 21. Shasha Denim made trading debut on March 5 and Bangladesh Steel Re-Rolling Mills on April 27.

Also, two companies -- Orion Pharma and RAK Ceramics will replace two others to join the DS30 index after the semi-annual rebalancing of the index, as per criteria set by S&P Dow Jones Indices.

Two existing constituents of DS30 Index -- LankaBangla Finance and Keya Cosmetics are being dropped from DS30 Index as they didn't comply with the requirements to retain their membership in DS30, which will be effective from July 21, 2015.

The premier bourse launched DSEX and DS30 price indices on January 28, 2013 for reflecting better calculation of market trends.

The indices, DSEX and DS30, were designed by Standard and Poor's (S&P), one of the world's leading credit-rating agencies, based on the free-float methodology used by the world's major indices.

As for DS30, 30 companies based on profitability, market capitalisation and share size were selected, with the companies changed every six months on the basis of performance.

babulfexpress@gmail.com

Shahjibazar allowed to be traded in normal mkt

FE Report - 15 July'2015 Wednesday
The securities regulator has exempted the share trading of Shahjibazar Power Company Limited (SPCL) from spot market to resume the company's trading in normal market, officials said.

The Bangladesh Securities and Exchange Commission (BSEC) Tuesday took the decision at a commission meeting held at the BSEC office.

The securities regulator, however, has not withdrawn its previous decision in considering the SPCL as non-marginable securities.

As a result, the lenders will not be able to provide margin loans to their clients for purchasing the securities of SPCL in normal market.

The BSEC sent the SPCL to spot market on November 18 last to contain its abnormal price hike.

The SPCL, which went public with an offer price of Tk 25, made its debut trading on July 15 last and the company's market price rose 1255.20 per cent to close at Tk 338.80 as on November 18, 2014.

The securities regulator earlier formed probe body twice to look into the continuous rise in share price of the SPCL.

Intensive monitoring of the securities regulator, however, failed to contain the price hike of the SPCL.

The BSEC also slapped fines worth Tk 5.5 million on the SPCL's five directors and managing director on charge of providing fabricated financial statements.

mufazzal.fe@gmail.com

Stocks extend gaining spell for 6th day Pharma, power, engineering issues attract investors

FE Report - 15 July' 2015 Wednesday
Stocks extended their gaining streak for the six straight sessions Tuesday, the last trading session before Eid holiday, as earning news continued to attract investors.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 27.28 points or 0.58 per cent to finish at 4,656.13. DSEX added 129.4 points in the past six consecutive sessions, hitting above 4,650-level after four months.

The two other indices also closed in green zone.  The DS30 index, comprising blue chips, rose 5.81 points or 0.32 per cent to end at 1,820.88. The DSE Shariah Index (DSES) advanced 5.27 points or 0.46 per cent to settle at 1,147.21.

Turnover crossed Tk 5.0 billion-mark again on the prime bourse and amounted to Tk 5.20 billion, which was 5.26 per cent higher than the previous session's Tk 4.94 billion.

The participants kept their focus concentrated on pharma, power and engineering - the sectors that accounted for 23 per cent, 21 per cent and 18 per cent of the day's total turnover.

"Stocks cheered on the last trading day before Eid holiday as earnings news continued to enchant investors," said LankaBangla Securities, a stockbroker, in an analysis.

Market participation increased as buyers marched up to take position on stocks those showed up growth in earnings, said the stockbroker.

IDLC Investments, a merchant bank, said, "Investors' positive expectation on post-eid market move assisted the pre-eid six sessions to remain positive".

The port city bourse Chittagong Stock Exchange (CSE) also closed higher for the six running sessions with its Selective Categories Index - CSCX - gained 44 points to close at 8,714.

Gainers beat losers 129 to 77, with 31 issues remaining unchanged at the port city bourse that traded 11 million shares and mutual fund units, turnover of Tk 425 million.

babulfexpress@gmail.com

Thursday, June 25, 2015

Dhaka stocks fall for the fifth trading session

New Age - 25 June'2015 Thursday


Dhaka stocks declined for the fifth trading session on Wednesday as the previous four days fall caused jitters among many of the investors.
The key index of Dhaka Stock Exchange, DSEX, fell by 0.71 per cent, or 32.21 points, to close at 4,457.24 points on the day.
Market operators said that from the beginning of the session, investors’ panic-driven share sell-offs were observed after fall in share prices in last four trading sessions in a row.
Investors were anticipating that the market might decline further ahead of the June closing, operators said.
Institutional investors including banks, merchant banks and mutual funds usually increase their share sell-offs due to various reasons including the entities capital market exposure reduction and fund liquidation by the MFs for giving dividends to their unit holders, operators said.
DS30, the blue-chip index of DSE, fell by 0.93 per cent, or 16.17 points, to finish at 1,717.04 points on Wednesday.
The Shariah index of the bourse, DSES, closed at 1,092.22 points, shedding 0.69 per cent or 7.59 points.
Turnover of the bourse declined to Tk 372.80 crore compared with that of Tk 434.53 crore in the previous trading session.
Of the 315 shares and mutual funds traded on the day, 114 advanced, 160 declined and 41 remained unchanged.
‘Investors turned cautious as DSEX gave away 4,500 points resistance yesterday,’ IDLC Investments said in its daily market commentary.
‘As a result, market encountered sale pressure from the beginning, which was unmatched by the buying-side,’ it said.
‘Therefore, prices broke out of their choppy moves and headed downhill,’ it said.
‘The ongoing correction intensified on the day [Wednesday], as the market was already showing signs of weakness,’ LankaBangla Securities said in its daily market commentary.
‘Investors prompted to safeguard their positions on stocks as jittery persisted,’ it said.
‘Selling forces were active in major large cap stocks which widened losses in mid-afternoon trade,’ said LankaBangla.
Beximco Pharma led the turnover chart on Wednesday as its shares worth Tk 19.29 crore changed hands.
IFAD Autos, Lafarge Surma Cement, Square Pharmaceuticals, Grameenphone, BEXIMCO, United Power Generation and Distribution Company, AFC Agro Biotech and Familytex were among other turnover leaders.
Aims First Mutual Fund gained the most on the day as its share prices rose by 9.96 per cent, while Asia Insurance Limited was the worst loser of the day, shedding 9.77 per cent.
The trading of Olympic Accessories will commence at the Dhaka and Chittagong stock exchanges on Thursday, a DSE web-post said on Tuesday.
The Bangladesh Securities and Exchange Commission earlier in February this year allowed Olympic Accessories to raise Tk 20 crore from the capital market.
As per the company’s latest financial statement, the earning per share of Olympic Accessories was Tk 1.43, while the net asset value per share was Tk 16.34 on June 30, 2014.

 

Dhaka stocks declined for the fifth trading session on Wednesday as the previous four days fall caused jitters among many of the investors.
The key index of Dhaka Stock Exchange, DSEX, fell by 0.71 per cent, or 32.21 points, to close at 4,457.24 points on the day.
Market operators said that from the beginning of the session, investors’ panic-driven share sell-offs were observed after fall in share prices in last four trading sessions in a row.
Investors were anticipating that the market might decline further ahead of the June closing, operators said.
Institutional investors including banks, merchant banks and mutual funds usually increase their share sell-offs due to various reasons including the entities capital market exposure reduction and fund liquidation by the MFs for giving dividends to their unit holders, operators said.
DS30, the blue-chip index of DSE, fell by 0.93 per cent, or 16.17 points, to finish at 1,717.04 points on Wednesday.
The Shariah index of the bourse, DSES, closed at 1,092.22 points, shedding 0.69 per cent or 7.59 points.
Turnover of the bourse declined to Tk 372.80 crore compared with that of Tk 434.53 crore in the previous trading session.
Of the 315 shares and mutual funds traded on the day, 114 advanced, 160 declined and 41 remained unchanged.
‘Investors turned cautious as DSEX gave away 4,500 points resistance yesterday,’ IDLC Investments said in its daily market commentary.
‘As a result, market encountered sale pressure from the beginning, which was unmatched by the buying-side,’ it said.
‘Therefore, prices broke out of their choppy moves and headed downhill,’ it said.
‘The ongoing correction intensified on the day [Wednesday], as the market was already showing signs of weakness,’ LankaBangla Securities said in its daily market commentary.
‘Investors prompted to safeguard their positions on stocks as jittery persisted,’ it said.
‘Selling forces were active in major large cap stocks which widened losses in mid-afternoon trade,’ said LankaBangla.
Beximco Pharma led the turnover chart on Wednesday as its shares worth Tk 19.29 crore changed hands.
IFAD Autos, Lafarge Surma Cement, Square Pharmaceuticals, Grameenphone, BEXIMCO, United Power Generation and Distribution Company, AFC Agro Biotech and Familytex were among other turnover leaders.
Aims First Mutual Fund gained the most on the day as its share prices rose by 9.96 per cent, while Asia Insurance Limited was the worst loser of the day, shedding 9.77 per cent.
The trading of Olympic Accessories will commence at the Dhaka and Chittagong stock exchanges on Thursday, a DSE web-post said on Tuesday.
The Bangladesh Securities and Exchange Commission earlier in February this year allowed Olympic Accessories to raise Tk 20 crore from the capital market.
As per the company’s latest financial statement, the earning per share of Olympic Accessories was Tk 1.43, while the net asset value per share was Tk 16.34 on June 30, 2014. - See more at: http://newagebd.net/132563/dhaka-stocks-fall-for-the-fifth-trading-session/#sthash.a2GEhBDh.dpuf

Lafarge moves up in market rankings

Daily Star - 24 June'2015 Thurs day
Lafarge Surma Cement has moved up to the A category of shares on the twin bourses from Z category after it disbursed its maiden dividends to shareholders.
Shares in the A category are generally considered to be the good ones.
The promotion to the A category means the multinational company's share trading cycle or settlement period has come down to T+2 from T+9.
In other words, the transaction of Lafarge shares must now be completed within two days of making the trade: the buyer must make payments and the seller must transfer ownership of the stock to the buyer in that timescale.
The Z category is for companies that do not hold annual general meetings regularly and declare dividends. Although Lafarge regularly held annual general meetings, it could not give dividends due to accumulated losses.
In June last year, eleven years after its listing on the stockmarket as the lone greenfield company, Lafarge declared its maiden dividend of Tk 0.50 per share after it managed to cover up its losses the previous month.
And later in March this year, Lafarge, which started commercial production in 2007, announced another 5 percent cash dividend or Tk 0.50 per share for 2014.
It also declared 5 percent interim cash dividend for this year out of the provisional net profits for the period ending in May.
Lafarge's consolidated net profit was Tk 98.40 crore at the end of May.
The upgrade to the A category has had a positive impact on its share price, which rose 2.43 percent yesterday.
Each Lafarge share traded between Tk 116.60 and Tk 122.90 before closing at Tk 118 on the Dhaka Stock Exchange.
The manufacturer of Supercrete brand also topped the turnover chart on the premier bourse with its transaction of 31.41 lakh shares worth Tk 37.50 crore.
Meanwhile, stocks continued to fall for the fourth day, with DSEX, the benchmark index of the Dhaka bourse, declining 14.52 points or 0.32 percent to close at 4,489.45 points.
Turnover rose 14.2 percent to Tk 434.53 crore.
Of the traded issues, 114 advanced, 158 declined and 46 remained unchanged on the DSE floor.
Among the major sectors, cement rose 1.77 percent in market capitalisation, followed by mutual fund at 1.32 percent and textile 0.81 percent.
Fuel and power lost 1.27 percent, followed by bank 0.83 percent and telecom 0.64 percent.
Hakkani Pulp and Paper was the day's best performer, advancing 9.87 percent, while Al-Haj Textile was the worst loser, slumping 7.6 percent.
Chittagong stocks also fell yesterday with the bourse's benchmark index dropping 56.01 points to close at 8,420.49.
Losers beat gainers on the Chittagong Stock Exchange as 138 stocks declined and 68 advanced, while 29 remained unchanged.
The port city bourse traded 1.32 crore shares and mutual fund units, generating a turnover of Tk 35.80 crore.

1996 share market scam cases transferred to Special Tribunal

FE Report - 25 June'2015 Thurs day
Mohammad Ali
The long pending 1996 share market scam cases are now ready at the recently formed capital market Special Tribunal for their speedy disposal, sources said.

The much-talked about 15 criminal cases were filed against dozens of persons of 15 listed companies and brokerage firms on charge of manipulating share prices through 'fraudulent' means in 1996.

Of the 15 cases, some were already included in the list for hearing at the Special Tribunal, which was formed to try such suspected manipulators at its dock, said the sources.

"Documents of all the 15 cases were transferred to the tribunal," an official told the FE Wednesday preferring anonymity.

The tribunal, he added, also directed the concerned persons to submit certified copies of latest court orders, at some of the cases, before it on July 7, 2015.

Bangladesh Securities and Exchange Commission (BSEC) filed the criminal cases under Section 17 of the Securities and Exchange Ordinance (SEO)-1969.

The eight listed companies, against whom BSEC filed cases, are Shine Pukur Holdings Ltd, Beximco Pharmaceuticals Ltd, Olympic Industries Ltd, Chittagong Cement Clinker Grinding Co. Ltd, Amam Sea Food Industries Ltd, Rupon Oil and Feeds Ltd, Chic Tex Ltd and Apex Foods Ltd, as per available sources.

While the seven dealers/brokers are Doha Securities, Imtiaz Hossain and Co, SES Company Ltd, Premium Securities Ltd, HMMS and Associates, Securities Consultants Ltd and First Capital Securities Ltd.

The cases were filed following recommendations made by a four-member enquiry committee on March 27, 1997.

The SEO stated maximum punishment of five-year jail term or fine of minimum Tk 0.5 million or both.

Housed on the 9th floor at Bangladesh House Building Finance Corporation (BHBFC) building in the Purana Paltan area, the tribunal started its formal judicial function this month.

In January of 2014, the government formed this Special Tribunal in Dhaka through a gazette notification.

Earlier, relevant provisions at the SEO were amended in late 2012 empowering the government to set up one or more such special tribunals.

Formation of the tribunal, among others, aims to reduce the backlog of capital market cases by quick disposal of the increasing number of legal disputes.

As per information available with the regulator, the number of total pending cases -- both civil and criminal -- already crossed 535. The backlog was with only 52 cases as of June 1999.

Of the cases, the much-discussed ones are the 15 criminal cases filed against suspected manipulators involved in the 1996 share-market debacle and two more such cases lodged on the 2010 scam.

md.ali.du@gmail.com

Move to offload more SoEs' shares hits snag - 'MoF takes go-slow policy amid present state of cap market'

FE Report - 25 June'2015 Thurs day
Rezaul Karim
The government's move to offload shares of more state-owned enterprises (SoEs) has hardly made any progress, mainly due to procedural complexities and dillydallying of the authorities concerned despite repeated reminders from the top levels, officials said.

"We are reminding the ministries concerned to expedite the process, and bring the SoEs, which are yet to offload their shares, in the capital market as early as possible," a high official of the Bank and Financial Institutions Division (BFID) told the FE.

However, another official of BFID said, "The Ministry of Finance (MoF) is now following a go-slow policy in offloading the SoEs' shares, considering the existing situation in the capital market."

Officials said BFID took a decision to hold a yearly meeting regarding floatation of the SoEs' shares. Subsequently, a meeting was held in May 2014 to devise a time­bound action plan for it.

Then the Ministry of Finance (MoF) in June asked the SoEs to expedite the share-offloading process. But there was no visible progress, they said.

Authorities of the SoEs concerned missed their respective deadlines several times, which they pledged earlier to the government for floating their shares, a senior ICB official close to the initiative told the FE.

Possibility of offloading shares of rest of the SoEs is gradually fading away due to some procedural complexities of the authorities concerned. As a result, the government could not float the SoEs' shares in the capital market despite repeated suggestions from experts and investors.

Many of the SoEs are presently unfit for offloading shares since they are incurring loss. According to the initial public offering (IPO) policy, no loss-making company can be listed in the capital market, he added.

The government sat with the state-run power companies in May to discuss about their share offloading.

BFID Secretary Dr. M Aslam Alam told the FE on Tuesday a check-list has already been sent to the SoEs to inform the government of their financial position, including progress made so far in offloading shares. But many of the SoEs could not fulfill the conditions of listing.

"The officials of BFID are frequently corresponding with the SoEs to complete their preparation for offloading shares. But there is no significant progress yet," he added.

Presently, at least 15 SoEs are supposed to offload their stakes in the capital market. The companies include - Bakhrabad Gas Transmission and Distribution Company, Gas Transmission Company, Jalalabad Gas Transmission and Distribution Company, Pashchimanchal Gas Company, Sylhet Gas Fields Company, Bangladesh Gas Fields, Rupantarita Prakritik Gas Company Limited (RPGCL), Teletalk Bangladesh, Bangladesh Telecommunications Company Ltd (BTCL), Bangladesh Cable Industries Ltd, and Bangladesh Telephone Shilpa Sangstha etc.

Presently, Essential Drugs Company Limited (EDCL) is in the final stage of offloading its shares in the market, ICB officials said.

Titas Gas Transmission and Distribution Company Ltd, Dhaka Electric Supply Company Ltd and Power Grid Company of Bangladesh Ltd have offloaded shares once, and are supposed to offload more in future. Ruposhi Bangla Hotel (Hotel Sheraton) remains suspended due to its branding.

rezamumu@gmail.com
 

Stocks extend losing streak for 5th day - DSE turnover dips below Tk 4b-mark again

FE Report - 25 June'2015 Thursday
Stocks extended their losing streak for the fifth straight sessions Wednesday amid sluggish trading activities as the investors protected their positions.

The market opened with a positive note, but could not sustain. DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down further by 32.21 points or 0.71 per cent to finish at 4,457.24.

The two other indices also edged in the red. The DS30 index, comprising blue chips, lost 16.17 or 0.93 per cent to close at 1,717.04. The DSE Shariah Index (DSES), moved down by 7.59 points or 0.69 per cent to end at 1,092.22.

Turnover remained sluggish on DSE and amounted to Tk 3.72 billion, which was 14.28 per cent lower than the previous day's Tk 4.34 billion.

The investors' attention was mostly focused on pharma, power and textile - the sectors that accounted for 25 per cent, 14 per cent and 13 per cent of the day's total turnover.

"The ongoing correction has been intensified as the market is already showing signs of weakness," said LankaBangla Securities, a stock broker, in an analysis.

"Investors safeguarded their positions on stocks as jittery persisted. Selling forces were active in major large-cap stocks which widened losses in mid-afternoon trade," said the stock broker.

IDLC Investments, a merchant bank, said, "Investors turned cautious as DSEX gave away 4,500 points resistance on Tuesday. As a result, market encountered sale pressure from the beginning, which was unmatched by the buy-side".

Therefore, prices broke out their choppy moves and headed downhill.  Cautious trading also strangled activities pulling down turnover, said the merchant bank.

"The losing streak extended in the leading stock bourse of the country for the five consecutive sessions amid profit booking sale pressure," said International leasing Securities, a stock broker, in an analysis.

Poor participation from the sideline and slow market momentum in recent period kept the investors in gloomy mood and therefore they preferred to book profit on the recent strength of the market, said the stock broker.

Moreover, investors' move to change issues ahead of June closing might be another reason for high sell-pressure, it said.

The activity also dried up as watchfulness lingered among the investors. Institutional investors might have kept their activity limited ahead of June closing, said the International Leasing.

All large-cap sectors retraced in the session cement pharmaceuticals which closed flat in green. Cement witnessed a heavy correction of 2.24 per cent. Power lost 1.08 per cent.

In the financial sector banks and NBFIs lost 0.52 per cent each. Food and allied went down by 0.34 per cent. Telecommunications also went down by 0.13 per cent.

The losers took a modest lead over the gainers as out of 315 issues traded, 160 declined, 114 advanced and 41 remained unchanged on the DSE trading floor.

Activities decreased in the major bourse where volume and trade were down by 12.08 per cent and 6.59 per cent respectively. A total number of 0.099 million trades were executed in day's trading session with trading volume of 99.42 million securities.

The total market capitalization on the prime bourse stood at Tk 3,158.41 billion against Tk 3,171.29 billion in the previous session.

Following the news of US Food and Drug Administration (FDA) approval of oral solid dosage facilities of Bexmico Pharma and Square Pharma, the issues dominated turnover chart.

Beximco Pharma was the day's top turnover leader with shares worth Tk 193 million changing hands followed by IFAD Autos, Lafarge Surma Cement, Square Pharma and GP.

AIMS First Mutual Fund was the day's top gainer, posting a rise of 9.96 per cent while Asia Insurance was the worst loser, plunging by 9.77 per cent.

The port city bourse Chittagong Stock Exchange (CSE) also ended lower with its Selective Categories Index - CSCX - lost 50.68 points to close at 8,369.80 points.

Losers beat gainers 136 to 63, with 34 issues remaining unchanged at the port city bourse that traded 10.15 million shares and mutual fund units, turnover of Tk 299 million.

babulfexpress@gmail.com

Tuesday, June 23, 2015

New BSEC rules ease foreign investment in pvt cos, stocks

New Age - 23 June'2015 Tuesday


The capital market regulator on Monday finalised and approved Bangladesh Securities and Exchange Commission (Alternative Investment) Rules—2015 in a bid to make it easier for the overseas funds to invest in venture capital, private firms and stocks.
Under the rules, local and foreign fund managers would be allowed to form ‘alternative investment funds’, which can invest in listed and non-listed entities, by taking BSEC approval to do the business.
High net worth individual resident and non-resident Bangladeshi investors, registered local or foreign fund managers or companies incorporated in Bangladesh or abroad would be eligible to invest in the alternative investment fund, BSEC officials told New Age.
The BSEC on June 3 approved the draft of the Alternative Investment Rules for public opinion which on Monday got BSEC approval with some adjustments, a BSEC press release said.
Although, the commission is yet to publish the finalised alternative investment rules, BSEC officials said that investors having net worth of Tk 2 crore and certified by the tax authorities concerned would be treated as a high net worth individual to be allowed to invest in alternative investment fund.
The minimum size of an Alternative Investment Fund will be Tk 10 crore and the initial subscription by the sponsors will be not less than 10 per cent of total size of the fund.
Fund managers and sponsors have to subscribe at least 2 per cent and 20 per cent of targeted size of the fund before registration of the fund.
Fund managers will be allowed to invest highest 25 per cent of the total fund size.
At least 75 per cent of the fund could be invested in non-listed securities as the main objective of forming such funds is to promote private firms in their early stage.
The fund managers will be allowed to invest maximum 25 per cent of the fund in listed securities and units of alternative funds managed by other fund managers.
A fund shall be formed for a specific period of five to 15 years and the tenure will be mentioned in the constitutive documents.
The tenure of the fund could be extended for a period of two years if the BSEC thinks it fit for the investors.
All investments in a fund shall be locked for a period of three years from the date of the issuance of the units.
A BSEC commissioner told New Age on Monday that the fees of the issue managers, investment limitations, duties and responsibilities of the fund managers and trustees of the alternative investment fund remained unchanged.
With the commencement of the rules, the Alternative Investment Fund will make equity and quasi-equity investments in the prospective firms.
The proposed investment fund will have to be operated by a fund manager under the Bangladesh Securities and Exchange Commission (Alternative Investment) Rules—2015.
The fund managers, which will have to be registered with the BSEC, will raise capital for a fund from the eligible investors.
Under the Trust Act–1882, the Trustee, registered with the securities regulator, will have to play a vital role in ensuring the interest of the unit holders.
The existing close-ended and open-ended mutual funds emphasize on investing in stock market, while the alternative investment fund will emphasize on investing on non-listed companies.

 


New rules for private equity and venture capital firms

Daily Star - 23 June'2015 Tuesday
Bangladesh Securities and Exchange Commission yesterday approved new rules for private equity and venture capital firms so that they can pool funds and make equity investment in non-listed companies.
The private equity and venture capital firms will have to follow the Alternative Investment Rules to create and manage the funds for equity financing.
The rules will be posted on the commission's website and will also be published as a gazette notification soon, the BSEC said in a statement.
The fund managers, which will have to be registered with the BSEC, will raise capital from eligible investors, who may be institutions, high-net-worth individuals and foreign fund managers.
From page b1
The funds cannot be raised through public issue or initial public offering; it can be raised only through private placement and it will not be listed or traded on the stock exchanges like other mutual funds.
Earlier on June 2, BSEC approved the draft on the Alternative Investment Rules and posted it on the commission's website and published it on national dailies for public opinion. Also at yesterday's meeting, the regulator warned Kormop Company, a Savar-based Korean private firm, for violating securities rules.
The non-listed firm raised capital three times without prior permission from the stockmarket regulator. The company also misreported its paid-up capital in the proposal to raise capital.
The BSEC found that Kormop mentioned its paid-up capital was Tk 9.81 crore instead of Tk 14.17 crore.

Stocks slide for third day

Daily Star - 23 June'2015 Tuesday
Stocks continued to fall for a third day amid choppy trading.
DSEX, the benchmark index of the Dhaka Stock Exchange, fell 7.48 points or 0.16 percent, before closing at 4,503.98 points.
The market has not shown any sign of reversal yet, said LankaBangla Securities. “Investors have not exhibited much exuberance as market direction remained unclear,” it said.
The consecutive, choppy trading sessions made the investors cautious and prompted them to cash in on stocks, the stockbroker added.
IDLC Investments said investors kept their focus on strategies, trying to locate undervalued investment opportunities throughout the market.
Turnover, an important indicator of the market, however rose 23.4 percent to stand at Tk 380.51 crore at the end of yesterday's trade.
Of the traded issues, 112 advanced and 144 declined, with 55 securities unchanged on the premier bourse.
Titas Gas dominated the turnover chart with 24.65 lakh shares worth Tk 17.16 crore changing hands, followed by United Air, Beximco Pharma, Beximco and Khulna Power Company.
Among the major sectors, the food and allied sector rose 0.72 percent in market capitalisation, followed by non-bank financial institutions that increased 0.49 percent and fuel and power 0.34 percent.
Conversely, banks lost 0.42 percent, followed by cement 0.4 percent and telecom 0.38 percent.
Hakkani Pulp and Paper was the day's best performer, advancing 10 percent, while Modern Dyeing and Screen Printing was the worst loser, slumping 8.78 percent.
Chittagong stocks rose yesterday with the bourse's benchmark index, gaining 20.7 points to stand at 8,476.5.

Friday, June 19, 2015

Stocks fall marginally

Daily Star - 19 June ' 2015 Friday
Stocks broke a three-day winning streak yesterday to close marginally lower amid cautious trading activity.
DSEX, the benchmark index of Dhaka Stock Exchange, fell 7.56 points or 0.16 percent, finishing the last day of the week at 4,519.85 points.
It was a day of choppy trade on the DSE: the market opened marginally higher in the first hour, but the gain was washed out by banking, cement and telecom stocks, said LankaBangla Securities.
“A selling spree was seen in the large-cap stocks, while the small-cap sector managed to end green,” the stockbroker said.
Turnover, another important indicator of the market, fell 9 percent to Tk 406.74 crore on transactions of 11.29 crore shares and mutual fund units.
Of the traded issues, 147 advanced and 121 retreated, with 44 securities unchanged on the premier bourse.
United Air dominated the turnover chart with 1.7 crore shares worth Tk 17.27 crore changing hands, followed by IFAD Autos, BSRM, Beximco and Khulna Power Company.
Among the major sectors, the engineering and pharma sectors were up 1.27 percent and 0.37 percent, while cement declined 1.84 percent followed by telecom 1.07 percent, non-bank financial institutions 0.82 percent and banks 0.28 percent.
Hakkani Pulp and Paper was the day's best performer, advancing 10 percent, while Samata Leather Complex was the worst loser, slumping 9.44 percent.
Chittagong stocks fell slightly yesterday with the bourse's benchmark index, CSCX, eroding 10.35 points to stand at 8,458.62.
Losers beat gainers as 117 declined and 94 advanced while 29 closed unchanged on the Chittagong Stock Exchange.
The port city bourse traded 1.11 crore shares and mutual fund units, generating a turnover of Tk 31.84 crore.

Stocks end lower as large caps fare poorly

FE Report - 19 June ' 2015 Friday
Stocks edged down Thursday with both indices and turnover value falling marginally, amid choppy trading on the premier bourse.

The market Thursday opened marginally higher in the first hour, but failed to sustain the momentum in late trading, dragged down by the Banks, Cement and Telecommunication stocks.

"Selling spree was active on large cap stocks, while small cap sectors managed to end in the green," said a market commentary of the LanakaBangla Securities.

The broad index DSEX shed 0.16 per cent or 7.56 points to close at 4,519 points on the Dhaka Stock Exchange (DSE).

On Sunday last, the market started the week's first session with 4,515 points, which closed at 4,519 points on Thursday.

As a result, only 4.0 points were added to the broad index this week.

On Thursday, the DSE Shahriah Index declined by 0.22 per cent or 2.51 points to close at 1,101 points.

On the other hand, the DSE30, comprising of blue chips, was also down by 0.19 per cent or 3.45 points to close at 1,742 points.

At the end of the session, turnover value reached Tk 4.06 billion, which was 9.0 per cent less than that of the previous session.

Among 312 issues traded, 147 advanced, 121 declined and the remaining 44 remained unchanged.

Among the major gainers, Engineering and Pharma sectors were up by 1.27 per cent and 0.37 per cent respectively.

On the other hand, the Banks, Cement, NBFIs and Telecommunications were down by 0.28 per cent, 1.84 per cent, 0.82 per cent and 1.07 per cent respectively.

United Airways topped the chart of turnover leaders with a value of Tk 172 million, followed by IFAD Autos, BSRM, BEXIMCO and KPCL.

Hakkani Pulp was the number one gainer with a rise in 10 per cent to close at Tk 31.90.

The chart of top 10 gainers also included Anwar Galvanizing, Monno Ceramic, National Tubes and Prime Islami Life Insurance.

Samata Leather Complex was the day's worst loser with a fall in 9.44 per cent in market price, followed by Paramount Insurance, Shurwid Industries, Rahima Food and United Airways (BD).

Indices and turnover value also declined marginally on the Chittagong Stock Exchange (CSE).

The benchmark index CASPI shed 29 points to close at 13,893 on the port city bourse.

Among 240 issues traded, 94 advanced, 117 declined and the remaining 29 remained unchanged.

At the end of the day's session, the turnover value stood at more than Tk 318.48 million.

mufazzal.fe@gmail.com

Thursday, June 18, 2015

CSE, BB jointly organise CAMLCO conference

FE Report - 18 January'2015 Thursday
Chittagong Stock Exchange Ltd (CSE) in collaboration with The Bangladesh Bank organised the "Annual CAMLCO conference, 2015 of CSE TREC Holders" at the Chittagong Boat Club conference hall in Chittagong Wednesday.

 The Deputy Governor of Bangladesh Bank Mr. S. K. Sur Chowdhury was the Chief Guest while Mr. Md. Amzad Hossain, Commissioner, Bangladesh Securities & Exchange Commission (BSEC) Dr. Mohammed Abdul Mazid, Chairman, CSE, Mr. Wali-ul-Maruf Matin, Managing Director, CSE and Mr. Mijanur Rahman Joddar, Executive Director, Bangladesh Bank were present as special guests.

Mr. M. Mahfuzur Rahman, Deputy Head of Bangladesh Financial Intelligence Unit (BFIU) presided over the programme.

On behalf of CSE, Mr. Ahmad Dawood, Chief Regulatory Officer, CSE and from Bangladesh Bank Mr. Md. Nazrul Islam, Deputy General Manager, BFIU gave the welcome note to the guests and participants.

Mr. S. K. Sur Chowdhury in his speech highly praised CSE's role on the matter of Anti-Money Laundering and Combating Financial Terrorism saying the bourse has always been cooperative to Bangladesh Bank whenever it has been asked to. He said, considering the expansion of business of the stock brokers in Chittagong, learning about money laundering and its impact on the economy of Bangladesh has now become crucial for them and this conference is a big opportunity to know the issue.

Mr. Amzad Hossain, Commissioner, BSEC in his speech said, CSE TREC Holders will be equipped with more updated knowledge on Money laundering by attending the conference and this will definitely help them to be highly compliant with the rules and regulations of BSEC and Bangladesh Bank. He said BSEC is now much stronger at surveillance and these types of awareness programs will enhance the brokers to cope with the rigorous monitoring of the regulators.

Dr. Abdul Mazid, Chairman of CSE and Ex- Chairman of NBR said, Stock Brokers should have profound understanding on money laundering and how this mechanism hampers the growth of the country as stock market of Bangladesh is also expected to be exposed to money laundering and terrorist financing.

He said by checking money laundering efficiently the government can ensure a sound public financial management which eventually will help them to reduce budget deficit. He cordially regarded the initiative of BB for arranging such program for CSE TREC Holders specially Chittagong.

DSE sees marginal rise

FE Report - 18 January'2015 Thursday
The premier bourse Wednesday witnessed a marginal rise both in the benchmark index and turnover value for the third consecutive session as major sectors contributed positively.

The market started its session with a flying note at 10.30 am and the benchmark index DSEX gained 23 points at 11.00 am.

Later, the DSEX lost some points and it shortly came back and ended through see-saw movement.

At the end of the session, the DSEX posted a gain of 0.45 per cent or 20.70 per cent to close at 4527.41 points.

DSE Shahriah Index went up by 0.22 per cent or 2.47 points to close at 1104, whereas another index DSE30 comprising of blue chips gained 0.24 per cent or 4.25 points to close at 1746.

Among 316 issues traded, 200 advanced, 85 declined and 31 remained unchanged on the Dhaka Stock Exchange (DSE).

Activities increased in the major bourse (DSE) where turnover and trade were up by 8.91 per cent and 39.36 per cent respectively.

A total of 0.13 million trades were executed at Wednesday's trading session generating the turnover of Tk 4.71 billion with a trading volume of 112.23 million securities.

The Wednesday's turnover value was 8.91 per cent up against the value observed in previous session.

"Market participation remained low with turnover value around as investors opted for cautious trading approach until the current consolidation phase ends," said a market commentary of the LankaBangla Securities.

"Despite day long volatility, market continued last day's momentum amid participation from both retail and institutional investors. Subsequently prime index added another 20.7 points before closing to 4,527.4 points," said another market commentary of the IDLC Investments.

On Wednesday Tosrifa Industies made its debut trading and observed a rise of 37.31 per cent or Tk 9.7 in market price. The company's shares were traded ranging between Tk 35.2 and Tk 50.

At the end of the session, Tosrifa Industries topped the chart of turnover leaders with a value of Tk 250 million followed by the Grameenphone, United Airways, Khulna Power Company Limited (KPCL), Familytex (BD) and BEXIMCO.

Al-Haj Textile was the day's number one gained with a rise of 9.94 per cent in market price followed by Prime Islami Life Insurance, Golden Harvest Agro Industries, Atlas Bangladesh, Desh Garments and Appollo Ispat Complex.

Savar Refractoris was the day's worst loser with fall of 10.00 per cent in market price.

Almost all the major sectors gained in market cap today. Among the major gainers, the Fuel & Power, Banks, and Textile sectors were up by 0.99 per cent, 0.24 per cent and 1.49 per cent respectively.

On the other hand, the Cement, Food & Allied and Telecommunications were down by 1.26 per cent, 0.69 per cent and 0.24 per cent respectively.

On the Chittagong Stock Exchange (CSE), the broad index CASPI rose 68 points to close at 13922 points.

Among 229 issues traded, 143 advanced, 57 declined and remaining 29 remained unchanged.

At the end of the session, the turnover value stood at Tk 440.16 million on the port city bourse.

mufazzal.fe@gmail.com

Thursday, June 11, 2015

Stocks fall for second day despite budgetary support

New Age - 11 June'2015 Thursday


Amid volatile trading, Dhaka stocks remained negative for the second trading session on Tuesday as institutional investors continued to book profit, leaving the general investors confused.
The key index of Dhaka Stock Exchange, DSEX, closed at 4,513.97 points, declining 0.52 per cent or 28.29 points on Tuesday.
Turnover of the bourse declined to Tk 467.70 crore on the day compared with that of Tk 586.05 crore in the previous trading session.
Market operators said that the market declined for another trading session as institutional investors continued share sell-offs to book profit.
Investors became skeptical as they did not find any reflection of their expectation in the market in last two trading sessions despite the fact that the government in the proposed budget offered a set of incentives for the capital market, they said.
Of the 312 shares and mutual funds traded on the day, 128 advanced, 143 declined and 41 remained unchanged.
‘Profit booking in post-budget scenario continued on the day, as investors sold off appreciated stocks and diverted funds to safer alternatives,’ IDLC Investments said in its daily market commentary.
‘However, sell pressure faced resistance on the day along the session, yielding volatility in market level,’ it said.
‘Market extended its losing streaks on the day amid falling market turnover value,’ LanakBangla Securiteis said in its market analysis on Tuesday.
‘After bottoming out at 3960 points, index raced up above 4600 index level in just last one month,’ it said.
‘Budget hope garnered the market sentiment throughout the period of pre-budget rally.’
‘Now the market seems to have entered into the correction phase,’ it said.
DS30, the blue-chip index of DSE, fell by 0.55 per cent, or 9.68 points, to finish at 1,738.48 points on the day.
The Shariah index of the bourse, DSES, declined at 1,094.92 points, shedding 0.74 per cent or 8.25 points.
United Airways led the turnover chart as its shares worth Tk 46.30 crore changed hands.
BEXIMCO, Khulna Power Compnay, Summit Power, United Power Generation and Distribution Company, Beximco Pharma, Lafarge Surma Cement, AFC Agro Biotech, ACI Formulations and Bangladesh Submarine Cable Company were other turnover leaders.
United Airways gained the most on the day as its share prices rose by 9.80 per cent, while Pioneer Insurance was the worst loser of the day, shedding 8.80 per cent.