Stocks start day with rising trend
The stock market gained in the first two hours of trading today. The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 41 points, or 0.59 per cent, to 6,971 till 12 pm. At the DSE, 165 stocks advanced, 150 fell and 53 remained the same. The index rose thanks to the increased participation of investors. Square Textile topped the gainers’ list that rose 10 per cent followed by Acme Pesticides, Brac Bank, Sena Kalyan Insurance and Mozaffar Hossain Spinning Mills.
Most spinning mills enjoy profitability improvement
The top-tier spinning mills listed on both Dhaka and Chattogram bourses are posting stellar growth in their profits as the price they are enjoying has outgrown their costs amid an increase in sales, especially for the spinners who produce comparatively higher value yarns. Matin Spinning Mills, a concern of DBL Group, posted 212% year-on-year growth in its quarterly profits for the July-September quarter this year. Its quarterly earnings per share stood at Tk2.68 for the first quarter of the current fiscal year, which was Tk0.86 in the corresponding period of the previous year. It secured Tk0.75 in EPS for the first quarter of this fiscal year, which was a meagre Tk0.11 in the same period a year ago. Following years of struggle to contain costs amid a downward pressure in yarn price, its stock price plunged below the Tk5 level in mid-2020. Spinners with the internal legacy of management problems that often caused production disruption or irregular disclosures, such as Delta Spinners, Dulamia Cotton are found posting deterioration in earnings and it is not a big shock to analysts.
Mercantile Bank signs deal with Narayanganj City Corporation
Mercantile Bank Limited has signed an agreement with Narayanganj City Corporation recently. The agreement was signed by Adil Raihan, DMD & CSBO of the bank, and Md Abul Amin, CEO of Narayanganj City Corporation & Deputy Secretary, in presence of Narayanganj city Mayor Salina Hayat Ivy. As per the agreement, Mercantile Bank will facilitate the collection of water and sewerage bills, holding tax, trade licence fees (new and renewal) and other services of Narayanganj City Corporation through online banking system, collection booth, mobile financial services ‘MyCash’, agent banking, digital banking app ‘MBL Rainbow’, Internet banking and other delivery channels.
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