Stocks rebound on stimulus, vaccine rollout news
Stocks rebounded strongly on Tuesday, with the key index hitting more than 42-month high, as investors went on buying spree riding on new stimulus and vaccine roll-out news. Prime Minister Sheikh Hasina on Tuesday announced five new stimulus packages worthTk 32 billion for low-income people, who have been affected by the Covid-19 lockdown restrictions.DSEX, the prime index of the DSE, rose 57.62 points or 0.92 per cent to settle at 6,266, highest since January 7, 2018, when the core index was 6,268. Market capitalisation of the prime bourse also soared to an all-time high at Tk 5,219 billion on Tuesday, surpassing the previous day’s record high of Tk 5,177 billion. Turnover, a crucial indicator of the market, also jumped to Tk 16.68 billion on the country’s premier bourse, in a further buck by 4.32 per cent over the previous day’s tally of Tk 15.99 billion.Two other indices also ended higher with the DS30 index, comprising blue chips, advanced 14.70 points to finish at 2,273 and the DSE Shariah Index rose 7.27 points to close at 1,354. Most of the major sectors posted gains with the heavyweight banking generating the highest return of 1.90 per cent, followed by cement with 1.70 per cent, engineering 1.0 per cent, financial institutions 0.90 per cent, power 0.60 per cent and telecom 0.50 per cent.The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI)-gaining 179 points to close at 18,220 while the Selective Categories Index – CSCX rising 103 points to close at 10,932.
Record date for BeximcoSukuk subscription July 19
Bangladesh Export Import Company (Beximco) set record date on July 19 for entitlement of rights to the existing shareholders of the company to subscribe the asset backed Beximco Green-Sukuk al Istisna for Tk 7.50 billion under private offer. The Beximco at a board meeting on Monday set the record date for existing shareholders to participate in the subscription of Sukuk through private placement, the company said in a filing with the Dhaka Stock Exchange (DSE) on Tuesday. The company set the record date to find out the shareholders of Beximco to allow them subscribing to Sukuk worth Tk 7.50 billion. The stock market regulator has accorded consent to Beximco as originator for issuance of Beximco Green-Sukuk Bond of Tk 30 billion on July 8 last.Each share of the Beximco, which was listed on the DSE in 1989, closed at Tk 96.60 on Tuesday, gaining 2.55 per cent over the previous day. Its shares traded between Tk 13 and Tk 101.30 in the last one year. The company has reported earnings per share (EPS) of Tk 2.38 for January-March 2021 as against Tk 0.12 for January-March 2020. Its nine months EPS rose to Tk 4.30 for July 2020-March 2021 as against Tk 0.66 for July 2019-March 2020. The company provided 5.0 per cent cash dividend for the year ended on June 30, 2020. The company’s paid-up capital is Tk 8.76 billion, authorised capital is Tk 10 billion and the total number of securities is 876.31 million.
Women entrepreneurs get 33pc SME loan under stimulus package
Managing Director of the SME Foundation DrMdMofizur Rahman said on Tuesday that women entrepreneurs received 33 per cent of the Tk 1.0 billion (100 crore) loan, distributed by the SME Foundation to overcome losses brought on by the Covid-19 pandemic, reports BSS. MdMofizur Rahman urged the banks and financial institutions concerned to take preparations for distributing another Tk 2.0 billion loan for the current fiscal year, 2021-22. He said this while exchanging views with the representatives of banks and financial institutions virtually. He informed that in the 2020-21 financial year, the SME Foundation distributed about Tk 1.16 billion among 1,069 entrepreneurs in 54 districts of the country through 13 banks and non-bank financial institutions at just 4.0 per cent interest rate. He expressed deep gratitude to the officials of SME Foundation and the banks and non-bank financial institutions concerned, especially BRAC Bank and IDLC, for disbursing the loan in less than two months.
ECB to taper pandemic buys after Sept: Poll
The European Central Bank will start tapering its pandemic-related asset purchases after its September meeting and stop buying them by the end of March, according to a Reuters poll which showed the top economic risk was new COVID-19 variants. After announcing a new strategy last week that allows the central bank to tolerate inflation higher than its new 2 per cent symmetric target, ECB President Christine Lagarde said on Monday the bank would change its policy guidance at its July 22 meeting.Just over 70 per cent of economists, or 36 of 51, who responded to an additional question in the July 5-12 poll said the ECB would start tapering its Pandemic Emergency Purchase Programme (PEPP) after the September meeting, up from nearly 63 per cent last month. All of the 1.85 trillion euro PEPP envelope would be used up, according to the consensus view of 39 economists, with the lowest expectation pencilled in at 1.5 trillion euros.