Stocks fall as second-wave fear grips investors
Stocks nosedived more than 3 per cent in the last two trading sessions as investors became worried following the sudden surge in Covid-19 infections and death tolls. The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dropped 84 points, or 1.56 per cent, to end the day at 5,349 yesterday. This means, the index shed 166.62 points, or 3.04 per cent in the last two sessions.Twenty-two people died of Covid-19 infections across the country in the last 24 hours, according to the Directorate General of Health Services. At least 2,172 people were infected.Turnover, an important indicator of the market, fell 10 per cent to Tk 615 crore yesterday at the DSE. Janata Insurance topped the gainers’ list as it rose 9.67 per cent, followed by Republic Insurance, ICB Islamic Bank, Asia Pacific Insurance, and Paramount Insurance. Beximco Ltd was the most-traded stock, with its shares worth Tk 84 crore changing hands, followed by Robi, Beximco Pharmaceuticals, LankaBangla Finance, and LafargeHolcim. Anlima Yarn took gave up the most as it fell 10 per cent, followed by Aziz Pipes, Beacon Pharmaceuticals, Emerald Oil, and Savar Refractories. The port city bourse also dropped yesterday. The CSCX, the general index of the Chittagong Stock Exchange, fell 157 points, or 1.66 per cent, to close at 9,342. At the CSE, 17 issues rose, 166 fell and 48 remained unchanged.
EXIM Bank to raise Tk 600cr through Mudaraba bond
Bangladesh’s first ever tier-one mudaraba perpetual bond has received the nod from the Bangladesh Securities and Exchange Commission (BSEC) for a Tk 600 crore fund to be raised. Tier-I capital consists of equity and perpetual debt securities, which are similar to equity in nature.The bond’s coupon rate ranges from 6 per cent to 10 per cent and it will be traded in stock exchanges once listed, said the BSEC in a press release. The fund would be raised through issuing the bonds among public sector financial institutions, mutual funds, insurance companies, scheduled and rural banks, trusts and eligible investors through private placement. The fund would be utilised to strengthen Exim Bank’s additional tier-one capital base. The face value of each unit would be Tk 10 lakh.Eight banks are raising funds of Tk 3,600 crore. They are City Bank, Jamuna Bank, Exim Bank, Mutual Trust Bank, Trust Bank, One Bank, First Security Islami Bank and Social Islami Bank.
Citibank, N.A. establishes H2H connectivity with M&J Group
Citibank, N.A. Bangladesh successfully established Host-to-Host (H2H) connectivity with M&J Group to enable them to automate their domestic payment solutions. With business models becoming more complex, and international buyers seeking for more efficiencies in supplier’s core operational process, M&J Group decided to integrate their ERP (Enterprise Resource Planning) system (Oracle) with Citi. The online banking platform will ensure faster and more secured payments for the group’s business, said a statement. H2H will enable secure electronic data transfer between Citibank, N.A. and M&J Group’s ERP system. This connectivity will allow M&J Group to exchange information in their preferred file formats, network protocols, and security standards further solidifying Citi’s ability for digital customization. Citi remains the go to partner for clients’ digitization initiatives. M&J Group is a pioneer in digital payments in Bangladesh. It is currently paying their full work force through mobile wallet. Majority of the group’s suppliers and other stake holders are receiving payments through Bangladesh Electronic Funds Transfer Network (BEFTN), Real-Time Gross Settlement (RTGS) and National Payment Switch Bangladesh (NPSB) with Cheque and Cash money usage at almost nil levels.
BSEC approves Exim Bank’s Tk 6.0b perpetual bond
The stock market regulator has approved an unsecured contingent-convertible mudaraba perpetual bond worth Tk 6.0 billion in favour of Exim Bank. The approval came at a meeting of Bangladesh Securities and Exchange Commission (BSEC) held on Sunday presided over by its Chairman Prof ShibliRubayat-Ul-Islam, said a BSEC statement on Sunday. As per the BSEC approval, the bank will float unsecured contingent-convertible BASEL-111 complaint, Exim Bank’s mudaraba perpetual bond worth Tk 6.0 billion through private placement. The price per unit of the bond is Tk 1.0 million which will be issued to the listed banks, mutual funds, insurance companies, regional rural banks, private organisations, trust funds, autonomous organisations and eligible investors though private placement. The coupon rate of the perpetual bond is 6.0 per cent to 10 per cent.Its shares traded between Tk 8.60 and Tk 13.60 each in the last one year. In nine months, the bank’s consolidated earnings per share (EPS) stood at Tk 1.43 for January-September 2020 as against Tk 0.44 for January-September 2019. The bank disbursed 10 per cent cash dividend for the year ended on December 31, 2019. The bank’s paid-up capital is Tk 14.12 billion and authorised capital is Tk 20 billion while the total number of securities is 1.41 billion. The sponsor-directors own 37.95 per cent stake in the bank, while the institutional investors own 26.08 per cent, foreign investors 1.56 per cent and the general public 34.41 per cent as on February 28, 2021, the DSE data show.