Dhaka stocks close downbeat

Staff Correspondent
Dhaka stocks finished Thursday downbeat after posting a gain in the previous day in a volatile trading amid a downtrend at the market in recent weeks, market operators said.
The general index of Dhaka Stock Exchange lost 3.93 points, or 0.15 per cent, to close at 2649.49, while its blue chips index, DSE20, shed 6.14 points, or 0.28 per cent, to finish at 2175.11.
A merchant bank official said investors, especially retailers, remained shaky amid the downtrend at the market in recent weeks. Starting with an upbeat mood, the market seesawed throughout the day, he said.
Of the total 263 issues traded, 159 advanced, 97 declined, and seven remained unchanged.
Turnover at the DSE, however, increased to Tk 297.59 crore from the Wednesday’s Tk 261.43 crore.
Beximco Pharmaceuticals topped the turnover leaders with a total transaction of Tk 36.56 crore.
Shinepukur Ceramics, Beximco, Aftab Automobiles, Summit Power, Lafarge Surma Cement, Titas Gas, LankaBangla Finance, Aims 1st Mutual Fund, and Grameen Two Mutual Fund were the rest of the top 10 turnover leaders.
Chittagong stocks dropped on Thursday.
The selective categories index of Chittagong Stock Exchange lost 21.42 points, or 0.40 per cent, to close at 5282.19, while its blue chips index, CSE30, shed 42.22 points, or 0.61 per cent, to finish at 6855.88.
Of the total 159 issues traded on the CSE floor, 81 posted gains, 74 dropped, and four remained unchanged.
Turnover at the CSE went up to Tk 49.38 crore from the Wednesday’s Tk 37.96 crore.

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Stocks end nearly flat

Dhaka stocks ended the week virtually unchanged with investors wandering from one sector to another looking for profit.

The market witnessed a cyclical profit-taking trend, analysts said, adding that the investors, especially the individuals, were randomly switching sides -- sometimes influenced by rumours -- to make profits.

“A short-term profit-taking trend appeared in the market. The investors want to book whatever the profit is after four or five days of trade,” said Arif Khan, general manager of IDLC Finance, yesterday.

The benchmark index of Dhaka Stock Exchange, DSE General Index (DGEN), fell 3.92 or 0.14 percent, to 2,649.49 points. The DSE All Share Price Index however rose 2.1 points, or 0.09 percent, to 2,196.96 points.

A total of 2,93,97,643 shares worth Tk 297.58 crore changed hands on the DSE. Of the 263 traded securities on the DSE, 159 advanced, 97 declined and seven remained unchanged.

Beximco Pharma topped the turnover leaders on the DSE with 20,93,100 traded shares worth Tk 36.55 crore. The other turnover leaders were Shinepukur Ceramics, Beximco, Aftab Automobiles, Summit Power, Lafarge Surma Cement, Titas Gas, LankaBangla Finance, AIMS 1st Mutual Fund and Grameen Mutual Fund One: Scheme Two.

Chittagong stocks recorded a slight fell yesterday. The CSE Selective Categories Index declined 21.42 points, or 0.4 percent, to 5,282.19 points. The CSE All Share Price Index also fell 11.3 points, or 0.13 percent, to 8,157.31 points.

A total of 63,91,118 shares worth Tk 49.38 crore changed hands on the Chittagong Stock Exchange. Of the 159 traded scrips on the port city bourse, 81 advanced, 74 declined and four remain unchanged.

Beximco Pharma topped the turnover leaders on the CSE with 3,85,650 traded shares worth Tk 6.73 crore. The other turnover leaders were Beximco, AIMS 1st Mutual Fund, Shinepukur Ceramics, Grameen Mutual Fund One: Scheme Two, AB Bank, Bextex, BSRM Steels, LankaBangla Finance and Union Capital.

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Beximco Pharma down in London trade

Prices of global depository receipts (GDRs) issued by Beximco Pharmaceuticals fell by around 47 percent at the Alternative Investment Market of London Stock Exchange (LSE) since September 1 last year, amid global financial turmoil.

“The world market is facing recession and the London stock market is not immune from the financial downturn,” said Salman F Rahman, vice-chairman of Beximco Group.

Each GDR of Beximco Pharmaceuticals closed at

13.5 pounds on January 28, while it closed at 25.5 pounds on September 1 last, according to the LSE website.

However, the company, one of the leading drug manufacturers in Bangladesh, is among some globally renowned companies that are facing such a price-drop, as a result of the ongoing financial meltdown.

Meanwhile, Beximco Pharma now performs very well on Bangladesh stock markets, as the LSE reflections is not tangible here.

Similarly the reflection of Bangladesh market is not also tangible on the London market because of the absence of any direct link between the two markets, said Rahman.

Besides, he pointed out, the trading of GDR on the local bourses is not allowed.

On the Dhaka Stock Exchange yesterday, each Beximco Pharma share was traded between Tk 170.60 and 177.60 before closing at Tk 171.70.

The trading of GDRs of the drug maker began on the Alternative Investment Market of London bourse on October 21, 2005.

In the first phase, the company raised around Tk 142 crore from international institutional investors through issuing two crore GDRs.

Beximco Pharmaceuticals in June 2006 announced that it raised 6.5 million pounds through issuance of 8,175,750 additional GDRs, each representing one ordinary share of Tk 10 at an issue price of 80 pence per GDR from the LSE.

With the listing on Alternative Investment Market of LSE, the local pharmaceutical giant positioned itself as the lone company from Bangladesh to raise fund from overseas stock market.

The profit margin of the pharmaceutical company has been coming down since 2005 due mainly to rising raw material prices and higher competition both in the local and international markets.

According to DSE website, the company made a net profit of Tk 489.26 million in 2005, while the profit was Tk 470.66 million in 2006 and Tk 353.07 million in 2007.

As per the half yearly financial statement of the company as of June 2008, its net profit was Tk 151.44 million.

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Asian stocks rise

Asian stocks rose in quiet trade Tuesday as dealers took a lead from a jump on Wall Street and some rare positive economic data from the United States amid a slew of grim employment news.

With half the region's markets still closed for the Chinese New Year holiday and many traders staying away for the same reason, there was some bargain hunting as investors took advantage of a poor end to the previous week.

Tokyo jumped nearly five percent after hitting a three-year low Monday.

The Nikkei was helped by a weaker yen, which boosted exporters, as well as an announcement from the government that it will inject public money into companies other than banks to help them through the global economic meltdown.

The news cheered investors who are tentatively awaiting a raft of miserable corporate news over the coming days and weeks.

The dollar traded at 89.56 yen in Tokyo, up from 89.07 in New York late Monday. The euro firmed to 118.31 yen from 117.46.

Sydney added three percent due to stronger resources stocks, while Mumbai gained 3.8 percent despite the central bank lowering the country's growth forecast for this financial year to March.

The markets were helped by a 0.48 percent rise in New York, which had rallied on hopes for a stimulus plan from US President Barack Obama that is going through Congress.

Markets also took confidence from news of a surprise jump in existing US home sales in December, while an index of leading economic indicators rose 0.3 percent, defying expectations of a drop.

However, tens of thousands of job losses from firms including Caterpillar, IBM, Pfizer and General Motors highlighted the depth of the financial crisis.

New Zealand advanced 1.11 percent, Bangkok 1.85 percent and Manila 0.6 percent, while Jakarta added 1.6 percent.

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Stocks fall for second day

Dhaka stocks slid for a second day in what market analysts said was irrational behaviour.

"There's no reason for the market to trade bearish," an analyst said. "No fundamentals are working in the market."

The market remained volatile over the past few days and the trading pattern indicated that it lost direction, an asset management firm said in an analysis.

The benchmark index, DSE General Index (DGEN), fell 25 points, or 0.93 percent, to 2,637.03 points. The DSE All Share Price Index also declined 20.78 points, or 0.94 percent, to 2,181.93 points.

“Liquidity is declining continuously as institutional and individual investors are following a wait-and-see policy. Lack of policy direction from the new government has frustrated market players,” the firm said.

Sharif Ataur Rahman, managing director of SAR Securities, said: “The investors should now go for long-term investment instead of short-term gains."

The investors should also not make investment decisions, influenced by rumours, he suggested.

The market opened rather steadily. In the opening 20 minutes, DGEN gained about 5 points. But the market found itself on the downward curve.

Of the 248 traded securities on the DSE, 74 advanced, 167 declined and seven remained unchanged.

A total of 2,10,68,892 shares worth Tk 254.39 crore changed hands on the premier bourse.

Beximco Pharma topped the turnover leaders on the DSE with 22,48,250 traded shares worth Tk 37.06 crore. The other turnover leaders were Shinepukur Ceramics, Beximco, Summit Power, Titas Gas, Aftab Automobiles, Quasem Drycells, Eastern Housing, S Alam Cold Rolled Steel and Grameen Mutual Fund One: Scheme Two.

Chittagong stocks also posted a fall. The CSE Selective Categories Index dropped 33.92 points, or 0.63 percent, to 5,286.28 points. The CSE All Share Price Index also slid 42.37 points, or 0.51 percent, to 8,138.67 points.

A total of 35,77,105 shares worth Tk 32.69 crore changed hands on the Chittagong Stock Exchange. Of the 145 traded scrips on the port city bourse, 35 advanced, 102 declined and nine remain unchanged.

Beximco Pharma topped the turnover leaders on the CSE with 2,34,400 traded shares worth Tk 3.87 crore. The other turnover leaders were Shinepukur Ceramics, Beximco, Eastern Housing, AIMS 1st Mutual Fund, BSRM Steels, Grameen Mutual Fund One: Scheme Two, Meghna Petroleum, Bextex and Jamuna Oil.

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Dhaka stocks fall again

The Dhaka Stock Exchange registered fall on Monday after gaining in two consecutive days as the prices of shares fell across the board.
The general index of DSE, the benchmark index, gained 26 points, or 0.97 per cent, to close at 2,662 on Monday from 2,688 on Sunday.
The all shares Price Index dropped 22 points or 0.98 percent to close at 2,202 from 2,224 on Sunday. The DSE-20 of selective shares also fell 18 points or 0.82 percent to close at 2,193 from Sunday’s 2,211 points.
Of the total 254 issues traded on Monday, only 66 registered gains, 181 incurred losses and seven remained unchanged.
The day’s total turnover increased to Tk 2.83b from Tk 2.71b on Sunday while the market capitalization declined to Tk 1.017 trillion from Tk 1.024 trillion on the previous trading day.
Beximco Pharma, Beximco, Shinepukur Ceramics, Summit Power, BATBC, AIMS 1st Mutual Fund, Summit Alliance, Aftab Auto, GRAMEENS2 and BSRM Steel were the turnover leaders in terms of value.
The day’s volume leaders were AIMS 1st Mutual Fund, Beximco Pharma, GRAMEENS2, Shinepukur Ceramics, Fu-Wang Food, Quasem Dry Cell, Beximco Textiles, Beximco, BATBC and BD Welding.
Top gainers of the day were Apex Weaving, Quasem Silk, Quasem Textiles, Tulip Dairy, Sreepur Textile, Rahim Textile, Bengal Fine Ceramics, Monno Jutex, United Leasing Company and M. Hossain Garments.

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Stocks slip back into losses

Dhaka stocks treaded back into the red yesterday, driven by the profit-taking sales of shares that capped a two-day rally.

Shares of most companies that gained over the previous few days traded down on the Dhaka Stock Exchange (DSE).

Some analysts however said investors' shakiness and confusion about the market were the reason behind bearish trade.

“Despite having interest in the market, the investors are still in confusion. Their confidence is running low,” said Yawer Sayeed, managing director of AIMS of Bangladesh.

The benchmark index, DSE General Index, fell 26.12 points, or 0.97 percent, to 2,662.04 points. The DSE All Share Price Index also declined 21.79 points, or 0.97 percent, to 2,202.72 points.

Although the market started positively by gaining about 7 points in opening trade, it soon started sliding. By the 60-minute mark, the net loss of the day stood at about eight points.

In the next 45 minutes, the market gained around 13 points. Later, DGEN traded down for the rest of the day.

Of the 254 traded securities on the DSE, 66 advanced, 181 declined and seven remained unchanged.

A total of 2,45,94,615 shares worth Tk 283.01 crore changed hands on the premier bourse.

Beximco Pharma topped the turnover leaders on the DSE with 21,40,650 traded shares worth Tk 36.05 crore. The other turnover leaders were Beximco, Shinepukur Ceramics, Summit Power, British American Tobacco, AIMS 1st Mutual Fund, Summit Alliance Port, Aftab Automobiles, Grameen Mutual Fund One: Scheme Two and BSRM Steels.

Chittagong stocks also recorded a fall. The CSE Selective Categories Index dropped 50.25 points, or 0.93 percent, to 5,320.2 points. The CSE All Share Price Index also slid 72.26 points, or 0.87 percent, to 8,181.04 points.

A total of 42,78,052 shares worth Tk 35.38 crore changed hands on the Chittagong Stock Exchange. Of the 151 traded scrips on the port city bourse, 38 advanced, 109 declined and four remain unchanged.

Beximco Pharma topped the turnover leaders on the CSE with 2,51,750 traded shares worth Tk 4.22 crore. The other turnover leaders were Beximco, Shinepukur Ceramics, AIMS 1st Mutual Fund, BSRM Steels, Grameen Mutual Fund One: Scheme Two, Summit Power, Titas Gas, Eastern Housing and AB Bank.

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Beximco Pharma to raise Tk 460cr from GEM

Beximco Pharmaceuticals Limited (BPL) yesterday announced a subscription agreement with GEM Global Yield Fund Limited (GEM Global), USA to raise Tk 460 crore by issuing its shares or warrants.

Bangladesh's pharmaceutical giant approved the issuance of ordinary shares aggregating up to Tk 410 crore and warrants worth Tk 50 crore to GEM, according to a press statement.

The company intends to utilise the capital for its BMRE, diversification and working capital.

“The move is testimonial of international of foreign fund manager to Bangladeshi market and reflects the tremendous confidence shown by foreign investors to Bangladeshi market," said Salman F Rahman, vice chairman of Beximco Group.

The shares of BPL will be issued under the variable pricing method at 90 percent of the average market value on Dhaka Stock Exchange Limited (DSE), whereas the warrants will be issued at Tk 200 per warrant/share.

The shares/warrants will be issued to GEM under the Companies Act 1994, subject to approval of its shareholders in their extraordinary general meeting (EGM) and the approval of the Securities and Exchange Commission.

Beximco Pharma expects to increase its turnover and net profit to Tk 1,006 crore and Tk 203 crore respectively in 2010 as most of the additional turnover and profit comes from exports.

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Grameen Mutual Fund floats 3rd scheme this year

The third scheme of Grameen Mutual Fund One will be floated this year following the success of earlier two schemes, a move that will strengthen the mutual fund's contribution to the country's stock market.

The AIMS of Bangladesh, the asset management firm of Grameen Bank, the sponsor of Grameen Mutual Fund One, will float the minimum Tk 300 crore scheme through initial public offering (IPO) and private placement.

“Launching of the third scheme is being designed under the sponsorship of Grameen Bank,” said Yawer Sayeed, managing director of AIMS (Asset and Investment Management Services) of Bangladesh.

“It will be a remarkable addition in the capital market and mutual fund industry,” he said.

The 'Grameen Mutual Fund One' was established under the Trust Act 1882, and registered under the Registration Act 1908 on May 09, 2001. The fund received SEC registration on August 27, 2001.

With a 15-year initial tenure, it is the first mutual fund that floats multiple schemes in Bangladesh.

The face value of per unit of the third scheme will be Tk 10.

Apart from the Grameen's third scheme, the AIMS plans to launch its own second mutual fund targeting the non-resident Bangladeshis (NRBs).

The size of the mutual fund, styled 'AIMS 2nd Probashi Mutual Fund', will be Tk 400 crore to Tk 500 crore.

Ten percent of the fund will be offered to the local investors through IPO, the AIMS MD said.

“We are committed to develop the mutual fund sector of Bangladesh capital market,” he said, adding that the AIMS will go for sectoral and fixed termed mutual funds in future.

The more mutual funds come the more the market becomes vibrant, market analysts said, pointing to the fact that mutual fund's contribution is bigger than other securities in developed countries.

The contribution of the existing mutual funds in terms of the local stock market capitalisation is around 3 percent, which is more than 50 percent in many developed countries.

Presently, 14 mutual funds are being traded on the Dhaka Stock Exchange.

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Dhaka stocks gain for 2nd day

Staff Correspondent

Dhaka stocks on Sunday gained for the second trading day with investors’ participation on the rise, market operators
said.
The general index of Dhaka Stock Exchange gained 17.11 points, or 0.64 per cent, to close at 2688.17, while its blue chips index, DSE20, advanced by 22.04 points, or 1.01 per cent, to finish at 2211.25.
A merchant bank official said the market
saw a buying spree of investors who bought shares to avail themselves of the lower prices of securities after recent weeks’ price fall.
The market, however, witnessed fluctuating movements of price indices on the day, he said.
Market analysts said the market had gained some sort of steadiness since the Securities and Exchange Commission held a market-review meeting with merchant banks and stock exchanges.
The stock market regulatory body convened the meeting on Tuesday following a demonstration staged by a group of retail investors in front of the DSE building on Monday amid a continuous fall in share prices.
Of the total 250 issues traded on the DSE on Sunday, 147 advanced, 98 declined, and five remained unchanged.
Turnover at the DSE increased to Tk 271.23 crore from the Thursday’s Tk 244.62 crore.
Beximco Pharmaceuticals topped the turnover leaders with a total transaction of Tk 25.10 crore.
ACI, Beximco, Shinepukur Ceramics, Summit Power, ACI Formulations, Titas Gas, Summit Alliance Port, Aftab Automobile, and Uttara Bank were the rest of the top 10 turnover leaders of the day.
Chittagong stocks also posted a gain for the second consecutive trading day on Sunday.
The selective categories index of Chittagong Stock Exchange gained 13.23 points, or 0.25 per cent, to close at 5370.46, while its blue chips index, CSE30, advanced by 19.43 points, or 0.28 per cent, to finish at 7027.76.
Of the total 150 issues traded on the CSE floor, 74 posted gains, 70 dropped, and six remained unchanged.
Turnover at the CSE, however, decreased slightly to Tk 32.68 crore from the Thursday’s Tk 33.13 crore.

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5 sponsor directors to quit BD Welding

Five sponsor directors of a listed company, Bangladesh Welding and Electrodes (BD Welding), have sought to quit the company, officials said.

The sponsors, who are also close relative to each other, have already sent a proposal to the state-run Investment Corporation of Bangladesh (ICB) to buy their shares outside the trading floor of the stock exchanges.

These sponsors are AR Khan, founder of BD Welding, Hosne Ara Khan, wife of AR Khan, Aminur Reza Khan, son of AR Khan, Nahreen Mahmud, sister of AR Khan, and Kazi Anwar Ahmed, husband of Nahreen Mahmud.

The five sponsors hold 35,92,500 shares out of 1,04,00,000 shares of the company.

People close to the sponsors said AR Khan, who is the key person behind the management of the company, is an aged person of 90 years and sick.

Now he wants to transfer his and his relatives' sponsorship to a strong managerial person or company like ICB.

Transfer of the sponsorship is however subject to the approval of Securities and Exchange Commission and other regulatory authorities.

“We have received the proposal from the sponsor directors of BD Welding and we are now studying the proposal as well as the company's business performance,” said Ziaul Haque Khondker, managing director of ICB.

Excluding the five sponsor directors, BD Welding, which was listed with the stock exchanges in 1999, has three other sponsors/directors.

The sponsors and directors hold 48.08 percent stakes in the company, while institutions hold 6.93 percent stakes and general investors hold 44.99 percent shares.

As per the half yearly financial report posted on the Dhaka Stock Exchange website, the company made a net profit of Tk 4.09 million as of June 30, 2008.

The company, however, incurred a net loss of Tk 6.99 million in 2007 against Tk 2.43 million in 2006.

Chittagong-based BD Welding, which is being traded under B category on the stock exchanges, mainly produces welding rod and industrial oxygen.

The authorised capital of the company is Tk 150 million and paid up capital is Tk 104 million.

On the DSE yesterday, each BD Welding share of Tk 10 was traded between Tk 40 and Tk 45.

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FDI proposals decline

Foreign direct investment (FDI) commitments were the lowest in 2008 both in terms of value and the number of proposals, according to Board of Investment (BoI) data.

Only 13 projects worth $60 million from intended foreign investors were registered with the BoI last year. Canada alone intended to invest about $53 million in one project.

Some 141 projects worth $327 million were registered in 2007.

Registration means an investment commitment by an intending investor, not actual investment. Registration is an official approval for expression of investment intent by an investor.

During registration, an entrepreneur submits an investment proposal to BoI to be implemented in a specified period.

The number of foreign investment proposals registered with BoI in 2006 was 166 worth $1,471 million. The number of proposals was 131 worth $3.8 billion in 2005.

“Investors want stable politics. The years 2007 and 2008 were volatile for domestic and foreign investors,” said a senior BoI official.

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Leasing companies demand tax cuts

The Bangladesh Leasing and Finance Companies Association (BLFCA) yesterday demanded cuts in corporate taxes for non-bank financial institutions to help the sector grow and contribute to increased economic activities.

A delegation, led by BLFCA Chairman Anis A Khan, met Finance Minister AMA Muhith at his ministry.

BLFCA, the representative body of non-bank financial institutions (FIs), demanded that the government lower the tax rate for FIs from 45 percent, a rate that also applies to banks.

"It was not practical to keep the banks and financial institutions in the same tax bracket, since a major part of the revenue of a bank comes from fee-based earnings such as L/C commission, commission on guarantees, remittances, substantial exchange income, which a financial institution cannot earn," BLFCA said in a statement.

Moreover, the cost of funds for a bank is much lower than non-bank financial institutions, according to BLFCA.

The authorities must set a lower rate for non-bank financial institutions than banks, it demanded.

"Financial institutions in our country play an important role in mobilising and channeling resources. These institutions comprise leasing companies, investment and finance companies, house finance companies," BLFCA said.

The leasing sector, a vital segment of the financial sector, has contributed significantly over the years, despite a string of setbacks, it said.

"It plays a catalytic role in providing alternate sources of finance to the private sector. The leasing industry is facing tremendous competition, challenges and regulatory changes, which affects adversely on the business," BLFCA said.

The association also demanded reinstatement of depreciation allowance to the industry saying that otherwise it would increase the tax burden. The government withdrew depreciation allowance for the leasing companies in 2007-08. The industry had been enjoying the allowance since 1985.

Depreciation allowance means, in all leasing transactions the owner of the asset is entitled to a depreciation allowance on machinery, plant, vehicle or furniture given to a lessee.

The finance minister said the ministry would examine the issue.

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DSE team calls on commerce minister

A team of the Dhaka Stock Exchange on Thursday called on the commerce minister, Faruk Khan, at his office in the capital.
Saiful Islam, senior vice-president of the DSE, led the 12-member team of the bourse.
‘At the meeting, we have updated the minister on the current position of the country’s stock market,’ Saiful Islam told New Age.
He said the DSE team urged the government to develop the market much more. ‘We have urged him to raise funds from the country’s stock market in implementing large infrastructure projects and to offload shares of more state-owned enterprises on the market,’ he said.
‘The minister has assured us that the government will provide all sorts of supports for further growth of the country’s capital market,’ Saiful said, adding, ‘The minister has also asked us to ensure transparency in the market.’
DSE vice-president Sharif Ataur Rahman, directors Md Abdullah Bokhari, Md Rakibur Rahman, MA Quayum, Nasir Uddin Chowdhury, Md Hanif Bhuiya, Lailun Nahar Ekram, Brig Gen Md Johurul Alam, and chief executive officer (current charge) AFM Shariful Islam, among others, were also on the visiting team.

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Dhaka stocks inch upward

Staff Correspondent
Dhaka stocks gained slightly on Thursday amid a volatile trend at the market in recent weeks, market operators said.
The general index of Dhaka Stock Exchange gained 6.16 points, or 0.23 per cent, to close at 2671.06, while its blue chips index, DSE20, advanced by 2.97 points, or 0.14 per cent, to finish at 2189.21.
A DSE stockbroker said the market finished almost flat as investors remained shaky amid the recent bearish trend in the market.
Dhaka stocks finished mixed on Wednesday after Tuesday’s quick-fire surge. On Tuesday, the market jumped after the Securities and Exchange Commission held a market-review meeting with merchant banks and stock exchanges.
The stock market regulatory body convened the meeting following a demonstration of a group of retail investors in front of the DSE building on Monday amid a continuous fall in share prices in recent weeks.
Of the total 254 issues traded on Thursday, 188 advanced, 61 declined and five remained unchanged.
Turnover at the DSE, however, dropped to Tk 244.62 crore from the Wednesday’s Tk 299.55 crore.
Beximco Pharmaceuticals topped the turnover leaders with a total transaction of Tk 16.08 crore.
Shinepukur Ceramics, Beximco, Titas Gas, Apex Tannery, Summit Power, Fu Wang Food, ACI Formulations, Aftab Automobiles, and Quasem Drycells were the rest of the top 10 turnover leaders on the day.
Chittagong stocks also posted a marginal gain on Thursday.
The selective categories index of Dhaka Stock Exchange gained 14.53 points, or 0.27 per cent, to close at 5357.23, while its blue chips index, CSE30, advanced by 1.95 points, or 0.03 per cent, to finish at 7008.33.
Of the total 144 issues traded on the CSE floor, 86 posted gains, 52 dropped, and six remained unchanged.
Turnover at the CSE, however, went down to Tk 33.13 crore from the Wednesday’s Tk 41.02 crore.

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Stocks end slightly higher

Dhaka stocks ended slightly higher yesterday, driven by sharp gain in the share prices of some state-owned and small market capitalisation companies.

Many investors rushed for the shares of government-run companies on speculation that those will see a business momentum under the newly elected government, market operators said.

“It was nothing but a high speculation,” said a member of Dhaka Stock Exchange.

The benchmark index of the premier bourse, DSE General Index, rose 6.16 points, or 0.23 percent to 2,671.06 points. The DSE All Share Price Index also gained 3.53 points, or 0.16 percent to 2,208.28 points.

In the opening 20 minutes or so, the market lost almost 10 points. Then it gained about 18 points in the next 20 to 25 minutes.

In the next 30 minutes the whole gain of the day diminished completely. For the next 75 minutes the market stayed within a band of 5 points.

Then in the following 30 minutes the market lost 6 to 7 points. At the fag end of the session, the market witnessed a rapid rise in the index.

Most securities traded up on the DSE. Of the 254 traded issues, 188 advanced, 61 declined and five remained unchanged.

A total of 2,36,47,560 shares worth Tk 244.62 crore changed hands on the premier bourse.

Beximco Pharma topped the turnover leaders on the DSE with 9,59,850 traded shares worth Tk 16.07 crore. The other turnover leaders were Shinepukur Ceramics, Beximco, Titas Gas, Apex Tannery, Summit Power, Fu-Wang Foods, ACI Formulations, Aftab Automobiles and Quasem Drycells.

Chittagong stocks also posted a slight gain. The CSE Selective Categories Index rose 14.53 points, or 0.27 percent to 5,357.22 points. The CSE All Share Price Index also increased 13.34 points, or 0.16 percent to 8,224.27 points.

A total of 40,88,475 shares worth Tk 33.12 crore changed hands on the Chittagong Stock Exchange. Of the 144 traded scrips on the port city bourse, 86 advanced, 52 declined and six remain unchanged.

Shinepukur Ceramics topped the turnover leaders on the CSE with 2,16,900 traded shares worth Tk 2.48 crore. The other turnover leaders were Beximco, Beximco Pharma, Grameen Mutual Fund One: Scheme Two, BSRM Steels, Apex Tannery, Titas Gas, Dutch-Bangla Bank, Jamuna Oil and AIC Formulations.

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Dhaka stocks finish on low note

Dhaka stocks finished mixed on Wednesday owing to a profit-taking selling pressure amid a volatile trading after Tuesday’s a quick-fire surge, market operators said.
The general index of the Dhaka Stock Exchange lost 7.75 points, or 0.29 per cent, to close at 2664.90, while its blue chips index, DSE20, gained 2.70 points, or 0.12 per cent, to finish at 2186.23.
A DSE stockbroker said the market witnessed a profit-taking selling spree of investors in the late trading. Starting with an upbeat mood, the market finished with on a low note, he said.
On Tuesday, the market jumped after the Securities and Exchange Commission held a market-review meeting with merchant banks and stock exchanges.
The stock market regulatory body convened the meeting following a demonstration of a group of retail investors in front of the DSE building on Monday amid a continuous fall in share prices in recent weeks.
Of the total 258 issues traded on Wednesday, 146 advanced, 105 declined and seven remained unchanged.
Turnover at the DSE, however, increased to Tk 299.55 crore from the Tuesday’s Tk 233.72 crore.
Beximco Pharmaceuticals topped the turnover leaders with a total transaction of Tk 34.09 crore.
Titas Gas, Shinepukur Ceramics, Beximco, BSRM Steels, Summit Power, Apex Tannery, Quasem Drycells, Uttara Bank, and Apex Adelchi Footwear were the rest of the top 10 turnover leaders on the day.
Chittagong stocks closed down on Wednesday.
The selective categories index of Chittagong Stock Exchange lost 31.19 points, or 0.58 per cent, to close at 5342.69, while its blue chips index, CSE30, shed 20.68 points, or 0.29 per cent, to finish at 7006.37.
Of the total 154 issues traded on the CSE floor, 80 posted gains, 70 dropped, and four remained unchanged.
Turnover at the CSE went up to Tk 41.02 crore from the Tuesday’s Tk 37.29 crore.
Trading at upazila-level branches of the DSE brokerage houses will remain closed today due to local government polls. However, settlement obligations shall be settled by the respective head offices of the brokerage houses, said an official of the bourse.

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Dhaka stocks slip

Dhaka stocks fell slightly yesterday amid a spell of confusion that surfaced over the government's pledges about the capital market.

Although the government has sent out a message of its commitment through the market regulator, the investors are waiting for a clear positive statement from the government itself, analysts said.

The Securities and Exchange Commission said on Tuesday Finance Minister AMA Muhit will visit the commission soon and sit with the regulator and stock exchanges authorities to discuss the problems and prospects of the market.

"The decline seems irrational. It appears that investor confidence is still low," said Mahmudul Bari, deputy general manager of the merchant banking division of IDLC Finance.

“Investors are failing to look at the bright side of the market,” he said, adding that it is however a temporary phenomenon. “The investors will start buying soon,” he hoped.

The benchmark index of Dhaka Stock Exchange, DSE General Index, fell 7.75 points, or 0.29 percent, to 2,664.89 points. The DSE All Share Price Index also declined 3.68 points, or 0.16 percent, to 2,204.75 points.

A DSE delegation meets the finance minister today, as the meeting, set for yesterday, was eventually cancelled.

The market started with a momentum and gained about 40 points in the opening 60 minutes.

In the next 30 minutes, the market lost about 20 points. Then the market gained in a bullish trade that lasted about 30 minutes.

Gainers however dominated the losers on the DSE. Of the 258 traded issues, 146 advanced, 105 declined and seven remained unchanged.

A total of 2,73,06,086 shares worth Tk 299.54 crore changed hands on the premier bourse.

Beximco Pharma topped the turnover leaders on the DSE with 20,31,300 traded shares worth Tk 34.08 crore. The other turnover leaders were Titas Gas, Shinepukur Ceramics, Beximco, BSRM Steels, Summit Power, Apex Tannery, Quasem Drycells, Uttara Bank and Apex Adelchi Footwear.

Chittagong stocks also marked a slight fall. The CSE Selective Categories Index declined 31.19 points, or 0.58 percent, to 5,342.69 points. The CSE All Share Price Index also dropped 40.65 points, or 0.49 percent, to 8,210.92 points.

A total of 46,44,746 shares worth Tk 41.02 crore changed hands on the Chittagong Stock Exchange. Of the 154 traded scrips on the port city bourse, 80 advanced, 70 declined and four remain unchanged.

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ICB to manage IT project under equity fund

The state-owned Investment Corporation of Bangladesh (ICB) is set to manage the IT project under the Equity and Entrepreneurship Fund (EEF).

The finance ministry has already approved the transfer of the fund management to the ICB from the central bank, officials said.

“We have received the approval letter. An agreement will be signed with the central bank soon to transfer management,” said Iftikhar-Uz-Zaman, general manager of ICB.

The government allocated Tk 100 crore in the budget for the IT project under the EEF for the current fiscal year.

The central bank had earlier sent a proposal to the finance ministry for approval to the management transfer.

Although Bangladesh Bank decided in November last year in principle to transfer the management of the entire EEF to the ICB for better use of the government fund, the IT project under the EEF will initially be handed over to the ICB.

The ICB had earlier submitted a proposal to the BB, seeking to manage the EEF following the government's intention to separate the EEF management from the central bank. This was because the management of the fund was not a suitable job for the central bank.

The government formed the EEF in 2000 with an initial fund of Tk 100 crore to extend equity support to eligible companies in IT, agriculture and food processing sectors, so that investors are encouraged to invest in these risky, yet promising sectors.

Presently, all the scheduled commercial banks and financial institutions are involved in the administration of EEF.

The BB has so far disbursed Tk 444.31 crore against the granted Tk 528.60 crore for 197 projects in agriculture and food processing and Tk 44.05 crore against the approved fund of Tk 56.87 crore for 32 projects in the IT sector.

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Investors stage street protest as Dhaka stocks' downslide goes on

Share prices went into a tailspin at DSE Monday in the absence of policy direction from the newly elected government, leading unnerved retail investors to take to the street in front of the Dhaka Stock Exchange.

The benchmark index DSE General Index (DGEN) shed 80 points, the single-day biggest drop since June 10 last, to close at 2596.31, the lowest since December 22 last.

Meanwhile, the Securities and Exchange Commission (SEC) will sit today (Tuesday) with the merchant bankers to find out the cause of continuous downslide of the market.

A group of investors gathered outside the prime bourse at around 11 am, chanted slogans and demanded of the government steps to halt the persistent slide of the market as the benchmark index fell for the fourth straight day, the worst losing streak in one month.

The market lost about 250 points in the last 15 days.

"I have lost all my savings in the last 15 days and no one from the government or regulator came to our rescue,'' said Aminur Rahman, 40, a protester. "I lost about Tk 0.5 million," said aggrieved Amin.

The government did not utter any single word to boost the investors' confidence since it was formed on January 6 last, he said.

Police took control of the situation without any untoward incident happening and surrounded the exchange for a while.

Most of the share prices went down on the day. Out of 246 issues traded, only 33 gained, 210 declined and three remained unchanged.

Two other market barometers--All Shares Price Index (DSI) and DSE 20 comprising blue chips-- also lost 62.99 points and 46.70 points to finish at 2147.04 and 2118.00 respectively.

The total turnover came down to Tk 3.22 billion against the previous day's Tk 3.39 billion while the market capitalisation fell below Tk 1.0 trillion-mark to stand at Tk 998.13 billion against previous day's Tk 1.03 trillion.

"The market saw high volume in daily transaction but no fresh fund has been injected as around Tk 3.50 billion was stuck in the private placement of GrameenPhone (GP)," said Yawer Sayeed, a capital market expert.

To add to the woes, a substantial amount of money has also been locked due to extension of application submission period for Puraba Chal project by Rajuk.

He said, some policy direction statement from the newly formed government may restore some confidence of the investors.

DSE acting chief executive officer AFM Shariful Islam said, said, "Institutional investors, the major market players, are reluctant to take part in trading and probably adopted wait and see policy."

Managing director of Prime Finance and Investment Limited Akter H Sannamat said institutional investors took to the sideline in the downslide market as they failed to understand the trend of the market.

Shinepukur Ceramics Limited was the top turnover leader with shares worth Tk 358.26 million traded while Beximco Limited was the second turnover leader with shares worth Tk 313.65 million traded.

Other next turnover leaders were Summit Power, Titas Gas, BSRM Steel Mills Limited, Grameen Scheme Two Mutual Fund and Uttara Bank.

The day's top gainers were Fine Foods, Meghna Pet, Dulamia Cotton, Modern Dyeing and Savar Refractories.

Padma Oil, Janata Insurance, Dandy Dyeing, Paper Processing, BEMCO and Al-Haj Textile were the top losers on the day.

Meanwhile, a delegation of the Dhaka Stock Exchange will meet the Finance Minister AMA Muhith tomorrow (Wednesday) to discuss the latest market situation.

"We are scheduled to meet the Finance Minister tomorrow to talk about the stock market," said AFM Shariful Islam, DSE acting chief executive officer.

The move came at a time when the market lost around 250 points in the last 15 days.

Some policy statement direction from the newly elected democratic government will help restore some confidence in the market, according to the market observers.

Meanwhile, chairman of the Securities and Exchange Commission (SEC) Faruq Ahmad Siddiqi has already met the finance minister recently.

"I met the finance minister recently. During our conversation about various topics, it seemed to me that he has positive attitude towards the stock market," the SEC chairman told the FE.

About the current downslide of the market, he said, "We will hold a meeting with the merchant bankers today (Tuesday) to know the reasons behind the fall of the market."

On Monday, share prices of the DSE, prime bourse, saw a freefall.

The benchmark index DSE General Index (DGEN) tumbled shedding 80 points, a single-day biggest decline in almost six months, or 3.02 per cent to close at 2596.31, its lowest since December 22 last.

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Stocks return from losses

After a long bearish spell, Dhaka stocks returned from losses yesterday on expectations of a positive outcome from a meeting between the market regulators and merchant bankers.

The Securities and Exchange Commission (SEC) sat with the merchant bankers yesterday to discuss the market situation.

The bankers told the SEC that they would take all necessary steps to stabilise the market, SEC officials said.

The officials said the merchant bankers had assured the SEC that they would not force any client into sell-offs to adjust margin loans.

The merchant bankers also told the meeting that they had been rattled by talk of SEC's move to launch an investigation against some merchant banks.

"We have assured them that there was no such move underway,” said SEC Executive Director Farhad Ahmed after the meeting.

The benchmark DSE General Index jumped 76.33 points, or 2.94 percent, to 2,672.65 points. The DSE All Share Price Index went up 61.38 points, or 2.85 percent, to 2,208.43 points.

The market started with a huge momentum toward an upward trend. After four days of index shedding, the market gained more than 74 points in ten minutes.

The market stayed steady all day except for the mid session that saw a decline of six points.

The gainers outnumbered the losers on the DSE. Of the 249 traded issues, 232 advanced, 14 declined and three remained unchanged.

A total of 2,02,11,050 shares worth Tk 233.72 crore changed hands on the premier bourse.

Beximco topped the turnover leaders on the DSE with 10,27,800 traded shares worth Tk 21.53 crore. The other turnover leaders were Shinepukur Ceramics, Beximco Pharma, Summit Power, Titas Gas, Jamuna Oil, Uttara Bank, Grameen Mutual Fund One: Scheme Two, Summit Alliance Port and ACI Formulations.

Chittagong stocks also posted a sharp rise. The CSE Selective Categories Index shot up 151.34 points, or 2.89 percent, to 5,373.88 points. The CSE All Share Price Index also jumped 219.22 points, or 2.72 percent, to 8,251.58 points.

A total of 41,35,663 shares worth Tk 37.29 crore changed hands on the Chittagong Stock Exchange. Of the 142 traded scrips on the port city bourse, 129 advanced, 10 declined and three remain unchanged.

Beximco topped the turnover leaders on the CSE with 1,90,500 traded shares worth Tk 3.97 crore. The other turnover leaders were Jamuna Oil, Beximco Pharma, Shinepukur Ceramics, Meghna Petroleum, BSRM Steels, Titas Gas, Grameen Mutual Fund One: Scheme Two, AIMS 1st Mutual Fund and Summit Power.

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Dhaka stocks rebound on buying spree

SEC holds meeting with bourses merchant banks
Dhaka stocks rebounded on Tuesday mainly owing to institutional buying after the SEC’s market-review meeting with merchant banks and stock exchanges, said market operators.
The general index of Dhaka Stock Exchange gained 76.34 points, or 2.94 per cent, to close at 2672.65, while its blue chips index, DSE20, advanced by 65.53 points, or 3.09 per cent, to finish at 2183.54.
The Securities and Exchange Commission, stock market regulatory body, held the meeting in the SEC conference room a day after a group of retail investors, frustrated with the continuous fall in share prices, staged demonstration in front of the DSE building.
Before the Tuesday’s rise, the market had dropped for the straight fourth trading day. The market had remained bearish for couple of weeks, said the operators.
DSE stockbrokers said institutional buying pushed the share prices up across the board on Tuesday. The SEC’s meeting also gave a positive signal to the market, they said.
‘In today’s (Tuesday’s) meeting, we have discussed the present market situation,’ the SEC executive director, Farhad Ahmed, told reporters.
He said investors should not be panicky with the downward trend at the market.
‘SEC chairman has communicated with the finance minister, who showed his willingness to visit the commission soon,’ he said.
Representative of the leading merchant banks and stock exchanges were present in the meeting.
Market analysts said the market had been dull in the recent weeks as institutional investors preferred a ‘wait-and-see’ policy while retail investors, dejected by the recent dullness at the market, scurried to sell off their holdings.
Of the total 249 issues traded on Tuesday, 232 advanced, 14 declined and three remained unchanged.
Turnover at the DSE increased to Tk 233.72 crore from the Monday’s Tk 321.40 crore.
Beximco topped the turnover leaders with a total transaction of Tk 21.54 crore.
Shinepukur Ceramics, Beximco Pharmaceuticals, Summit Power, Titas Gas, Jamuna Oil, Uttara Bank, Grameen Two Mutual Fund, Summit Alliance Port and ACI Formulations were the rest of the top 10 turnover leaders on the day.
Chittagong stocks also gained sharply on Tuesday.
The selective categories index at the Chittagong Stock Exchange gained 151.34 points, or 2.90 per cent, to close at 5373.88, while its blue chips index, CSE30, advanced by 217.77 points, or 3.20 per cent, to finish at 7027.05.
Of the total 142 issues traded on the CSE floor, 129 posted gains, 10 dropped and three remained unchanged.
Turnover at the CSE, however, dropped to Tk 37.29 crore from the Monday’s Tk 46.29 crore.

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Finance minister to visit SEC soon

As investors await a positive policy direction on the bearish capital market from the new government, Finance Minister AMA Muhit's forthcoming first-ever visit to the regulatory body has ushered a ray of hope.

The officials with the Securities and Exchange Commission told The Daily Star yesterday that problems and prospects of the market would come up for discussion during the minister's visit.

However, the date is yet to be scheduled, the officials said.

Meanwhile a team from the Dhaka Stock Exchange will meet Muhit today to place its five-year work plan for market development.

The plan styled 'Vision-2013', includes increasing market capitalisation to $35 billion from the existing $13 billion, bringing daily turnover to Tk 2,000 crore by 2013, introducing internet based trading, setting up an online-based National Settlement and Clearing House and upgrading the IT infrastructure.

Bringing the trading facility to people's doorstep and figuring strategies to protect investors' interest are also under the plan.

Referring to the SEC chairman's recent meeting with the finance minister, SEC Executive Director Farhad Ahmed said it seems that the new government is deeply committed to developing the capital market further.

Remembering the 1996 bubble and bust that took place in the market during the last Awami League regime, the investors, especially individual investors, are very eager for a policy support, analysts say.

They said despite several qualitative changes since the market crash, there is no chance of such a debacle. The investors want the government to come forward and restore their confidence, they added.

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DSE investors stage demo as prices fall

Frustrated at the continuous fall in share prices, a group of retail investors on Monday staged a demonstration in front of the Dhaka Stock Exchange building.
Dhaka stocks plunged for the straight fourth trading day on Monday due to selling pressure amid a volatile trend in the market in recent weeks, market operators said.
The general index of DSE lost 80.87 points, or 3.02 per cent, to close at 2596.32, while its blue chips index, DSE20, shed 46.71 points, or 2.16 per cent, to finish at 2118. The DSE general index lost 248.45 points since January 4.
The group of retail investors gathered in front of the DSE building at about 10:45am and agitated on the road, blocking traffic for about half an hour, until the police came to foil their protest, witnesses said.
The demonstrators demanded that the authorities should take steps to arrest any further slide in share prices in the market, the witnesses said.
Most of the securities dropped on Monday. Out of 246 issues traded on the DSE floor, 210 declined, 33 advanced and three remained unchanged.
Market analysts said the market had been dull in recent weeks as institutional investors preferred a ‘wait-and-see’ policy while retail investors, dejected by the recent prevalence of dullness at the market, scurried to sell off their holdings.
‘It seems that institutional investors, the prime movers of the market, are waiting for what policy directions come from the new government,’ said Yawer Sayeed, managing director and chief executive officer of Aims of Bangladesh, an asset management company.
The price movement fluctuated most of the days in recent weeks, reflecting the investors’ shakiness, he added.
A DSE official said the price adjustment of Padma Oil Co Ltd, after its corporate benefits, also contributed to the Monday’s sharp fall.
Due to the adjustment, share price of Padma Oil dropped to Tk 750.60, down by 47 per cent from the previous day’s closing.
Before the last two-week’s bear run, the market had been in a bull run for a couple of weeks thanks to an increased participation of investors after a two-and-a-half-month lull.
Turnover at the DSE dropped to Tk 321.40 crore on Monday from the Sunday’s Tk 338.02 crore.
Shinepukur Ceramics topped the turnover leaders with a total transaction of Tk 35.83 crore.
Beximco, Beximco Pharmaceuticals, Summit Power, Titas Gas, BSRM Steels, Grameen Two Mutual Fund, Uttara Bank, Aims 1st Mutual Fund, and Summit Alliance Port were the rest of the top 10 turnover leaders on the day.
Chittagong stocks also fell sharply on Monday.
The selective categories index of Chittagong Stock Exchange lost 119.02 points, or 2.23 per cent, to close at 5222.54, while its blue chips index, CSE30, shed 129.53 points, or 1.87 per cent, to finish at 6809.28.
Of the total 133 issues traded on the CSE floor, 120 dropped and 13 posted gains.
Turnover at the CSE decreased slightly to Tk 46.29 crore from the Sunday’s Tk 46.95 crore.

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Shinepukur Ceramics to raise Tk80cr in bonds

Shinepukur Ceramics, a fully export-oriented bone china and porcelain tableware manufacturing company, has decided to borrow Tk 80 crore from its parent company Beximco through issuing convertible bond to invest in setting up a new bone china unit.

Issuing of the convertible bond is however subject to the approval of the company's shareholders as well as Securities and Exchange Commission.

Bond is a debt instrument, while convertible bond means that it is convertible into a company's common stock or share.

The new bone china manufacturing unit, the completion of which is due in October next, aims at increasing production capacity and sales turnover, the company high officials said.

On expansion, the production capacity will be raised by 150 percent to 25,000 pieces a day from the existing manufacture of 10,000 pieces.

An additional Tk 110 crore exports and Tk 20 crore net profit is also expected. The present per annum turnover is around Tk 155 crore.

“We are happy to announce this expansion plan,” said Shinepukur Ceramics Chairman Nazmul Hassan, hopping that Bangladesh's image would increase abroad as more and more world renowned manufacturers are keen to tie-up with Shinepukur Ceramics for tableware production.

“Shinepukur, the country's single largest exporter of ceramic tableware, contributes around 50 percent of the total export of the item from Bangladesh,” Hassan added.

For setting up the new unit at the Beximco Industrial Park in Gazipur, Shinepukur signed an agreement with a German company on Sunday.

The company, equipped with the state-of-the-art machineries, has two independent units producing high quality porcelain and bone china tableware. The porcelain unit has a capacity of manufacturing 65,000 pieces per day.

Since its commercial production at the end of 1999, Shinepukur has successfully developed a substantial export market for the top-of-the-line bone china and porcelain tableware and the customer portfolio now includes world-class tableware companies in the UK, USA, Spain, Italy, Australia, New Zealand, Norway, Sweden, Russia and UAE.

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Stocks slump as investors seek refuge in Beximco

Dhaka stocks fell sharply yesterday with a trend of investors flocking to Beximco Group shares.

Over the past few weeks, the investors have showed interest mainly in Beximco shares. They showed the least interest in the banking sector, which accounts for more than 50 percent of total market capitalisation, market analysts said.

Three Beximco Group companies were top three turnover leaders on Dhaka Stock Exchange yesterday.

"Many investors are offloading their stakes in other sector companies and putting the money in Beximco shares on expectations of minimising their losses from the recent slump,” said a merchant banker.

Too much attention to Beximco shares has distorted the prices of other shares, he said, adding that profit-taking sales are part of the reason behind the bearish trend.

The benchmark DSE General Index dropped 80.87 points, or 3.02 percent, to 2,596.31 points. The DSE All Share Price Index also declined by 62.99 points, or 2.85 percent, to 2,147.04 points.

The market looked bearish from the beginning except a slight gain after 30 minutes of trading. The market lost at a prolonged but steady rate throughout the day.

Most securities traded down on the DSE. Of the 246 traded issues, 33 advanced, 210 declined and three remained unchanged.

A total of 2,54,83,728 shares worth Tk 321.39 crore changed hands on the premier bourse.

Shinepukur Ceramics topped the turnover leaders on the DSE with 30,72,000 traded shares worth Tk 35.82 crore. The other turnover leaders were Beximco, Beximco Pharma, Summit Power, Titas Gas, BSRM Steels, Grameen Mutual Fund One: Scheme Two, Uttara Bank, AIMS 1st Mutual Fund and Summit Alliance Port.

Chittagong stocks also recorded a sharp fall. The CSE Selective Categories Index declined 119.01 points, or 2.22 percent, to 5,222.54 points. The CSE All Share Price Index also fell 171.91 points, or 2.09 percent to 8,032.36 points.

A total of 45,71,202 shares worth Tk 46.28 crore changed hands on the Chittagong Stock Exchange. Of the 133 traded scrips on the port city bourse, 13 advanced and 120 declined.

Beximco topped the turnover leaders on the CSE with 2,94,700 traded shares worth Tk 6.06 crore. The other turnover leaders were Shinepukur Ceramics, Beximco Pharma, Grameen Mutual Fund One: Scheme Two, Titas Gas, BSRM Steels, Summit Power, AIMS 1st Mutual Fund, Jamuna Oil and ACI Formulations.

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Shinepukur to expand bone china output

Shinepukur Ceramics Ltd has signed a memorandum of understanding with a German company for setting up an expansion unit of bone china.
The deal was signed Sunday to boost Shinepukur’s bone china output by 150 per cent. Nazmul Hassan, chairman of Shinepukur Ceramics Ltd, and Konrad Schmidling, managing director of Ceramic Info Centre, Germany, signed the expansion agreement at Beximco Corporate Headquarters in Dhaka.
Under the deal, Germany’s Ceramic Info Centre will erect and commission Shinepulur’s bone china expansion unit, to be set up at Beximco Industrial Park, having a capacity of 4.5 tonnes a day.
The expansion is scheduled for completion in less than 10 months ‘at an estimated cost of Tk 80 crore which will entirely be financed’ by Beximco, the parent company of ‘fully export-oriented’ Shinepukur.
‘Once the expansion project is completed additional export sales of Tk 110 crore and net profit of Tk 20 crore is expected,’ a Group statement said.
‘This is a reflection of the business community’s confidence in the democratic process and in the new government,’ said Salman F Rahman, deputy chairman of the Beximco Group.
‘We are also planning to expand our existing plants and exploring new avenues to invest,’ Salman Rahman told the news agency.
With around 50 per cent of the Bangladesh’s total tableware export, Shinepukur Ceramics is clearly the market leader in the country’s ceramic tableware industry.
The company now has two independent units, producing high quality porcelain and bone china tableware. The porcelain unit has a capacity of 65,000 pieces.
Since the launch of commercial production at the end of 1999, Shinepukur has made rapid inroads into the export market, with a customer portfolio that includes world-renowned tableware companies in the UK, the US, Spain, Italy, Australia, New Zealand, Norway, Sweden, Russia, UAE, Denmark, Germany, France, Mexico, and Turkey.

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Dhaka stocks drop for 3rd day

Dhaka stocks finished down on Sunday, the third consecutive trading day, in a market that saw continuous price fluctuations amid a downtrend for the last couple of weeks.
The general index of Dhaka Stock Exchange lost 18.39 points, or 0.68 per cent, to close at 2677.19, while its blue chips index, DSE20, shed 34.63 points, or 1.57 per cent, to finish at 2164.71.
‘The market remained dull in recent weeks as institutional investors preferred a “wait-and-see” policy,’ said Yawer Sayeed, managing director and chief executive officer of Aims of Bangladesh, an asset management company.
He said, ‘It seems that institutional investors, the prime movers of the market, are waiting for what policy directions come from the new government.’
The price movement fluctuated most of the days in recent weeks, reflecting the investors’ shakiness, he added.
A merchant bank official said the market witnessed a selling pressure from investors, especially from retailers, who—dejected by the recent prevalence of dullness at the market—scurried to sell off their holdings. He, however, said some investors also offloaded shares to gather cash to buy initial public offerings of Bay Leasing and Investment Ltd, subscription of which started on Sunday.
Before the last two-week’s bear run, the market had been in a bull run for a couple of weeks thanks to an increased participation of investors after a two-and-a-half-month lull.
Of the total 241 issues traded on Sunday, 39 advanced, 196 declined, and six remained unchanged.
Turnover at the DSE, however, increased slightly to Tk 338.02 crore from the Thursday’s Tk 330.15 crore.
Titas Gas topped the turnover leaders with a total transaction of Tk 34.95 crore.
Beximco Pharmaceuti-cals, Beximco, BSRM Steels, Summit Power, Shinepukur Ceramics, ACI Formulations, Summit Alliance Port, Aims 1st Mutual Fund, and Grameen Two Mutual Fund were the rest of the top 10 turnover leaders on the day.
Share-trading of the BSRM Steels and the Republic Insurance Company started at the DSE and the Chittagong Stock Exchange on Sunday.
The share price of BSRM Steels posted a 429.50-per cent rise to close at Tk 529.50 at the DSE, while Republic Insurance Company gained 81.75 per cent to close at Tk 181.75. Face values of the two companies’ shares are Tk 100 each.
Chittagong stocks also dropped on Sunday, the opening trading day of the week.
The CSE selective categories index lost 88.48 points, or 1.63 per cent, to close at 5341.56, while its blue chips index, CSE30, shed 130.41 points, or 1.84 per cent, to finish at 6938.81.
Of the total 130 issues traded on the CSE floor, 22 posted gains, 106 dropped, and two remained unchanged.
Turnover at the CSE increased to Tk 46.95 crore from the Thursday’s Tk 45.75 crore.

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Dhaka stocks end lower

Dhaka stocks fell on the first trading day of the week, despite the debut of two issues yesterday.

The benchmark index of Dhaka Stock Exchange, DSE General Index, dropped 18.38 points, or 0.68 percent, to 2,677.19 points. The DSE All Share Price Index declined by 17.11 points, or 0.76 percent to 2,210.04 points.

The indices would have lost around 45 points if the two companies had not debuted, market analysts said. The two companies -- BSRM Steels and Republic Insurance Company -- added some 25 points to the indices.

BSRM Steels has joined the stock market by floating 20 lakh ordinary shares of Tk 100 each. Republic Insurance has joined in by offloading 0.9 lakh ordinary shares of Tk 100 each.

The market looked bearish from the beginning except the gain driven by the two new companies. The market lost at a prolonged but steady rate throughout the day.

Most securities traded down on the DSE. Of the 241 traded issues, 39 advanced, 196 declined and six remained unchanged.

A total of 2,69,13,286 shares worth Tk 338.01 crore changed hands on the premier bourse.

Titas Gas topped the turnover leaders on the DSE with 7,02,250 traded shares worth Tk 34.95 crore. The other turnover leaders were Beximco Pharma, Beximco, BSRM Steels, Summit Power, Shinepukur Ceramics, ACI Formulations, Summit Alliance Port, AIMS 1st Mutual Fund and Grameen Mutual Fund One: Scheme Two.

Chittagong stocks also recorded a fall. The CSE Selective Categories Index declined 88.48 points, or 1.62 percent, to 5,341.56 points. The CSE All Share Price Index also fell 127.32 points, or 1.52 percent to 8,204.28 points.

A total of 47,20,839 shares worth Tk 46.94 crore changed hands on the Chittagong Stock Exchange. Of the 130 traded scrips on the port city bourse, 22 advanced, 106 declined and two remained unchanged.

BSRM Steels topped the turnover leaders on the CSE with 1,45,850 traded shares worth Tk 6.99 crore. The other turnover leaders were Beximco Pharma, Beximco, Titas Gas, Shinepukur Ceramics, ACI Formulations, AIMS 1st Mutual Fund, Grameen Mutual Fund One: Scheme Two, Summit Power and Jamuna Oil.

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ACI to raise Tk 130cr in bonds

Advanced Chemical Industries (ACI) Limited has decided to borrow Tk 130 crore through issuing convertible zero coupon bonds for loan repayment and fresh investment.

The decision came at the company's Board of Directors meeting on Thursday.

A zero coupon bond is a bond bought at a price lower than its face value, but at the time of maturity the repayment will be an amount that the face value actually means. And convertible zero coupon bond means that it is convertible into a company's common stock or share.

The issuance of the bond 'ACI 20% Convertible Zero Coupon Bond', first of its kind, is however subject to the approval of Securities and Exchange Commission, the company officials said.

“The prime object of issuing the zero coupon bond is to repay the loan provided by the existing financiers,” said Muallem A Choudhury, executive director (finance and planning) of ACI.

“The rest of the borrowed money, if there is any, will be injected to the company's business as fresh investment,” he added.

Maturity period of the bond is five years with yearly redemption. It means 20 percent value of the bond will be repaid to the investors in each year with a 10.5 percent discount rate.

Of the yearly repaying amount, 20 percent will be converted into ACI shares.

Along with the discount or interest, the investors, excluding banks and insurance companies, will also get tax exemption on the income from the zero coupon bond.

The bond will be traded in Dhaka and Chittagong stock exchanges, which is also subject to the approval of the authorities.

The trading of the debt instrument will help the capital market in activating the bond market, as the existing one is almost inactive.

The bond will be issued through both private placement and initial public offering. Alliance Financial Services Ltd is the issue manager of the bond, while Industrial and Infrastructure Development Finance Co Ltd is the facility manager.

ACI, which has investments in pharmaceuticals, consumer brands and commodity products, agribusinesses, crop care and public health, livestock and fisheries, fertiliser and seeds business, posted net profits of Tk 36.25 crore in 2007. The company posted net profits of Tk 17.18 crore as of June 30.

The ACI subsidiaries include ACI Formulations Limited, Apex Leathercrafts Limited, ACI Salt Limited, ACI Pure Flour Limited, ACI Foods Limited, Consolidated Chemicals Limited, Premiaflex Plastics Limited, Creative Communications Limited, ACI Motors Limited and ACI Logistics Limited.

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Stocks mostly down

Dhaka stocks fell with a topsy-turvy trading yesterday, showing a lack of investors' confidence.

The price fluctuations throughout the day reflected that the investors were yet to get back their confidence fully, according to experts.

They said institutional investors remained aloof from the market, taking its recent behavioural pattern into consideration.

The DSE General Index (DGEN), declined by 17.07 points, or 0.62 percent to 2,695.57 points. The DSE All Share Price Index also fell by 14.28 points, or 0.63 percent to 2,227.16 points.

Most of the securities traded down on the DSE. Of the 244 traded issues, 72 advanced, 162 declined and 10 remain unchanged.

Within the opening 15 minutes, DGEN gained about 5 points. In the following 30 minutes, the market lost over 10 points.

Then the market started witnessing ups and downs and this trend continued to the end of trading.

A total of 2,88,82,354 shares worth Tk 330.14 crore changed hands on the premier bourse.

Beximco topped the turnover leaders with 17,32,300 traded shares worth Tk 37.46 crore. The other turnover leaders were Shinepukur Ceramics, Titas Gas, Summit Port, Beximco Pharma, ACI Formulations, Grameen Mutual Fund One: Scheme Two, Summit Alliance Port, AIMS 1st Mutual Fund and Bextex.

Chittagong stocks also recorded a fall. The CSE Selective Categories Index dropped 34.43 points, or 0.63 percent to 5,430.04 points. The CSE All Share Price Index also decreased 51.29 points, 0.61 percent to 8,331.6 points.

A total of 52,53,607 shares worth Tk 45.75 crore changed hands on the Chittagong Stock Exchange. Of the 130 traded scrips on the port city bourse, 33 advanced, 94 declined and three remain unchanged.

Beximco topped the turnover leaders on the CSE with 2,89,300 traded shares worth Tk 6.23 crore. The other turnover leaders were Shinepukur Ceramics, Beximco Pharma, ACI Formulations, Grameen Mutual Fund One: Scheme Two, AIMS 1st Mutual Fund, Titas Gas, Bextex, Summit Power and Islami Bank

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BB mulls farm credit target for banks

Bangladesh Bank (BB) mulls fixing a farm credit target to boost agriculture production, officials said.

“BB is considering a target for private local and foreign commercial banks, as those are reluctant to give farm loans,” a senior central bank official told The Daily Star yesterday.

In fiscal year 2007-08, 30 private commercial banks (PCBs) disbursed Tk 1,560 crore in farm loans, while nine foreign commercial banks (FCBs) disbursed only Tk 854 crore.

The PCBs' lending to the agricultural sector was Tk 1,117 crore and Tk 334 crore in 2006-07 and 2005-06 fiscal years respectively.

“The contribution of the private local and foreign banks in agricultural lending still remained poor compared to that of the state-owned and specialised lenders,” the official said, supporting the BB move to impose a minimum requirement.

Four state-owned and five specialised banks, including Bangladesh Krishi Bank (BKB), disbursed Tk 6,167 crore and Tk 5,293 crore farm credit in 2007-08 and 2006-07 respectively.

FCBs operating in Bangladesh did not disburse any agricultural loan before the last fiscal year ended in June 2008, according to BB statistics.

The government, private sector and donors emphasised raising farm productivity in the wake of a huge rise in the prices of agriculture products, especially food grains, in 2008.

In a bid to increase farm output, the Awami League-led grand alliance government has halved the prices of non-urea fertiliser just a week after assuming power.

Meanwhile, the central bank in September 2008 issued a circular asking all banks operating here for agriculture lending, but there was no mention of a ceiling in the circular.

“We have asked the PCBs and FCBs to give a reasonable amount as farm credit, but we don't get expected response from all banks,” said another official in the central bank's agriculture credit department.

Pointing to the poor presence of some PCBs and FCBs in rural areas, the official said the central bank has asked the banks for making collaboration with other banks and NGOs located in rural areas to disburse farm credit.

On the alleged FCBs' industrial lending in the name of farm credit, the official said, “We don't allow it”.

Even any lending to 33 areas identified as agro-based industry will not be considered as farm credit, he added.

“The government can consider giving tax incentives against farm credit to encourage banks for more loans,” said Shahjahan Bhuiyan, managing director of United Commercial Bank.

He suggested that a certain percent tax rebate might be given against a bank's farm credit. Currently, banks give 45 percent tax against their income.

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