DSE turnover crosses Tk 4.0b-mark after one month
Stocks kept the gaining streak for the second consecutive session on Monday as the buoyant investors continued their appetite on large-cap issues amid optimism. DSEX, the key index of the Dhaka Stock Exchange, went up by 16.30 points or 0.39 per cent to settle at 4,145 during the four hours trading.Market operators said gradual reopening of the economy and the stock market regulator’s assurance not to lift floor price restriction right now, led investors for buying shares. Gradual reopening of the economy and static daily number of Covid-19 cases led investors to strike bargains on promising issues, said a merchant banker. The securities regulator’s hard stance on ensuring mandatory 2.0 per cent shareholding by each director of listed companies had a positive impact on the stock prices, he said. The stock market regulator has recently asked 61 directors of 22 listed companies to ensure a minimum 2.0 per cent shares in their own companies within 45 days to continue their directorship.The gradual reopening of the economy and no major spike in daily Covid-19 infected cases led investors to take position in sector-wise stocks, said the UCB Capital. Two other indices also ended higher. The DS30 index, comprising blue chips, rose 3.20 points to finish at 1,400 and the DSE Shariah Index advanced 1.99 points to close at 965. Turnover, another important indicator of the market, stood at Tk 4.37 billion on the country’s prime bourse, which was 18 per cent higher than the previous day’s turnover of Tk 3.71 billion. General insurance, power, financial institutions, pharma and banking sectors gained, 4.20 per cent, 0.80 per cent, 0.50 per cent, 0.40 per cent and 0.40 per cent respectively. Food and telecom sectors lost 2.10 per cent and 1.0 per cent respectively. Most of the shares remained stuck at the trading. Of the issues traded, 160 remained unchanged while 117 issues advanced and 67 declined on the DSE floor. A total number of 93,273 trades were executed in the day’s trading session with a trading volume of 132.61 million shares and mutual fund units.The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI)-gaining 46 points to close at 11,796 and the Selective Categories Index – CSCX -rising 29 points to finish at 7,152. Of the issues traded, 74 gained, 46 declined and 102 remained unchanged on the CSE. The port city bourse traded 2.81 million shares and mutual fund units with turnover value of Tk 95 million.
Reckitt Benckiser’s profit jumps 53pc in Q2
Reckitt Benckiser Bangladesh’s profit after tax jumped more than 53 per cent in April-June, 2020 quarter due to strong revenue growth driven by increased demand of personal hygiene products during pandemic. The board of directors of the company in a virtual meeting on Sunday approved the un-audited financial statements for April-June, 2020 period. Reckitt Benckiser is engaged in manufacturing and marketing of household and toiletries, pharmaceuticals and food products.The personal care products manufacturer’s profit after tax rose to Tk 158 million in April-June, 2020 which was Tk 103 million in the same quarter of the previous year. In six months for January-June, 2020, the company’s profit after tax was Tk 271.73 million as against Tk 176.14 million for January-June, 2019. Accordingly, the company’s earnings per share (EPS) jumped to Tk 33.47 for April-June, 2020 as against Tk 21.82 for April-June, 2019. In six months for January-June, 2020, the company’s EPS was Tk 57.51 as against Tk 37.28 for January-June, 2019. The net operating cash flow per share (NOCFPS) was Tk 211.98 for January-June, 2020 as against 72.22 for January-June, 2019.The net asset value (NAV) per share was Tk 200.15 as on June 30, 2020 and Tk 142.64 as on December 31, 2019.Listed in 1987, each share of the Reckitt Benckiser closed at Tk 3,573.70 on Monday, losing 2.29 per cent over the previous day. Its share traded between Tk 2,330 and Tk 3,775 in the last one year.The company’s paid-up capital is Tk 47.25 million, authorised capital is Tk 250 million and the total number of securities is 4.72 million.
IPDC’s net profit after tax rises in the first half of the year
After setting aside adequate provisioning due to difficult times ahead, IPDC Finance registered a net profit after tax of Tk. 316 million in the first half of the year 2020, which is one per cent higher than the first half of last year. The revenue of IPDC Finance rose 24.9 per cent in the first half of the year, as against first half of 2019 while its default loan rate remained steady at 1.59 per cent. IPDC Finance’s customer deposit has increased by 8.7% compared to December 2019, it has maintained a solid capital adequacy ratio of 17.28%. The company has also ended H1’20 with a strong liquidity cushion of Tk. 6.65 billion.IPDC’s half yearly financial highlights are a testimony of its good corporate governance, proactive planning, and taking responsibility of its customers, employees and the community. We thank all our clients and partners for keeping their faith in us. Our efforts lie in maintaining the momentum with which we are moving forward and extend our hands to help the community emerge out of this crisis together.
BD auctions white tea for first time
For the first time in the history of tea auction in the port city of Chattogram, white tea was sold in the auction on Monday. White tea was sold in the regular auction of the season. Only 10 kilogram of white tea was displayed at the auction and it was sold at Tk 2,500 per kilogram. Earlier, green tea was sold in the auction. But for the first time in Bangladesh, white tea was sold in the auction of tea here.The price of white tea at retail level is Tk 8,000 to Tk 9,000 per kilogram.
Gold hits record high as US-China ties worsen
Gold hit an all-time high on Monday as tit-for-tat consulate closures in China and the United States rattled investors, boosting the allure of safe haven assets, although sentiment was mixed with tech gains supporting some Asian stocks. MSCI’s ex-Japan Asia-Pacific index rose 1.3 per cent as Taiwan’s TSMC, Asia’s third-largest company by market capitalisation, rose almost 10 per cent.The chipmaker’s gains boosted other tech stocks in the region and came after rival Intel signalled it may give up manufacturing its own components due to delays in new 7 nanometer chip technology. Also soothing sentiment, Chinese shares eked out gains after big falls late last week, with CSI300 index rising 0.5 per cent. S&P500 futures were last up 0.4 per cent in choppy trade while Japan’s Nikkei fell 0.5 per cent, resuming trade after a long weekend and catching up with falls in global shares late last week. Global shares had lost steam last week after Washington ordered China’s consulate in Houston to close, prompting Beijing to react in kind by closing the U.S. consulate in Chengdu.Gold rose 1.0 per cent to a record high of $1,920.9 per ounce , surpassing a peak touched in September 2011, as Sino-U.S. tensions boosted the allure of safe haven assets, especially those not tied to any specific country.Concerns about the U.S. economic outlook started to weigh on the dollar, reversing its inverse correlation with the economic well-being over the past few months. The dollar index dropped 0.3 per cent to its lowest level in nearly two years. The euro gained 0.3 per cent to $1.1693, hitting a 22-month high of $1.16590 as sentiment on the common currency improved after European leaders reached a deal on a recovery fund in a major step towards more fiscal co-operation. Against the yen, the dollar slipped 0.5 per cent to 105.605 yen , a four-month low while the British pound hit a 4 1/2-month high of $1.2832. Oil prices dipped on worries about the worsening Sino-U.S. relations. Brent futures fell 0.46 per cent to $43.14 per barrel while U.S. crude futures lost 0.44 per cent to $41.11.
China to fast-track construction of its economic zone in Ctg
China has finally decided to speed up the development of the dedicated Chinese Economic and Industrial Zone (CEIZ) in Chattogram mainly to benefit from the competitive advantage Bangladesh enjoys in global trade. Prime Minister Sheikh Hasina had offered creation of the zone during her visit to China in 2014. In 2015, the Executive Committee of the National Economic Council had given approval for CEIZ to be set up exclusively for Chinese investors on 774.25 acres of land in Anwaraupazila.China Harbour said the $100 million was ready to be brought in while it had got businesses interested through promotional activities and follow ups based on Bangladesh’s favourable investment environment and global reputation of its parent company, China Communications Construction Company (CCCC). Over 60 enterprises have expressed their willingness to invest nearly $280 million to set up businesses in CEIZ and wanted to take 40 per cent of the land of the zone through sub-lease.The CEIZ will be able to eventually attract more than $1 billion in foreign investment, create 60,000 to 90,000 new jobs, directly or indirectly, and ultimately boost industrialisation and develop the economy of the surrounding Chattogram district. Policy stability was needed to help investors prepare their business plan and avoid uncertainties as the world’s second-largest economy looked to broaden its footprint in Bangladesh through investments and relocating factories, they said.