Foreign investors to purchase shares worth $100m of United Mymensingh Power
United Power Generation & Distribution Company Limited and its major shareholder United Mymensingh Power Limited (“UMPL”) executed an agreement with an international private equity group for an investment of BDT 8.5 billion (approximately US$100 million). The investors will purchase existing shares from UMPL. The share sales will be by way of an agreed plan of UMPL and United Power. According to statistics available with the DSE, 770,520 shares of United Power were traded, generating a turnover of Tk 302 million, which was 5.31 per cent of the total turnover. The total turnover on the DSE stood at Tk 5.68 billion on Tuesday, up from Tk 4.77 billion in the previous session. The company’s share closed at Tk 394.50 each, gaining 2.68 per cent over the previous day. The company has also reported consolidated earnings per share (EPS) of Tk 16.08, consolidated net asset value (NAV) per share of Tk 62.80 and consolidated net operating cash flow per share (NOCFPS) Tk 16.14 for the year ended on June 30, 2019. The United Power, listed on the DSE in April 2015, disbursed 90 per cent cash and 20 per cent stock dividends in 2018. The company’s paid-up capital is Tk 4.79 billion and authorised capital is Tk 8.0 billion while total number of scurrilities is 479.08 million. The sponsor-directors own 90 per cent stake in the company, while institutions own 6.54 per cent, foreign investors 0.04 per cent and the general public 3.42 per cent as of July 31, 2019. Bangladesh Shipping Corporation clinched the third spot, with shares worth Tk 189 million changing hands. The state-run company’s share closed at Tk 58.70, shedding 4.71 per cent. JMI Syringes emerged fourth, with shares worth Tk 183 million changing hands. The company’s share price soared 8.73 per cent to close at Tk 483 each. Indo-Bangla Pharma notched the fifth spot, with units worth Tk 142 million changing hands. The company’s share closed at Tk 25.80 each, gaining 1.18 per cent. In order to become an upper middle-income country by 2031 and achieve high-income country status by 2041, Bangladesh will require huge investment in physical capital, human capital, and innovation enabled by reforms in areas such as financial sector and business regulation.
Maintaining steady economic growth a big challenge: ICCB
Maintaining steady economic growth and reducing inequality are two big challenges for Bangladesh now, Mahbubur Rahman, president of the International Chamber of Commerce Bangladesh, said yesterday. The government has to ensure the equal distribution of the benefits of the economic growth among all and for that more importance should be given to delivery of social services.
DSE turnover hits two-month high
The turnover on Dhaka Stock Exchange (DSE) crossed Tk 5.0 billion-mark on Tuesday again as investors put fresh stakes on stocks amid post-Eid expectation. Turnover, a crucial indicator of the market, stood at Tk 5.68 billion on the country’s premier bourse, climbing further by 19 per cent over previous day’s mark of Tk 4.77 billion. It was the highest single-day turnover in nearly two months since June 13, when the turnover totaled Tk 5.72 billion. Along with the rising turnover value, DSEX, the prime index of the prime bourse also rebounded after a single-day break. DSEX, the prime index of the DSE, went up by 26.92 points or 0.52 per cent to settle at 5,187. CB Capital said the market remained upbeat throughout the session driven by large-cap shares like United Power, Khulna Power and Grameenphone. The UCB Capital noted that pre-Eid sell-off waned and investors started injecting fund to take position in undervalued stocks. Two other indices also ended higher. The DS30 index, comprising blue chips, advanced 9.76 points to finish at 1,836 and the DSES (Shariah) index rose 4.66 points to settle at 1,194. Trading activities increased as the investors’ injected fresh fund which helped to cross the turnover Tk 5.50 billion levels after June 13, 2019. Power posted the highest gain of 2.37 per cent, followed by non-bank financial institutions with 0.70 per cent, engineering 0.67 per cent, telecom 0.43 per cent and banking 0.37 per cent. Food and allied and pharmaceuticals sectors suffered 0.24 per cent and 0.02 per cent loss. A total number of 145,030 trades were executed in the day’s trading session with trading volume of 148.18 million shares and mutual fund units. The port city bourse, the Chittagong Stock Exchange, also ended higher lower with the CSE All Share Price Index – CASPI – gaining 85 points to settle at 15,873 while the Selective Categories Index – CSCX -rising 50 points to finish at 9,646.
Idea and innovation key to success
Generating ideas and having a keen mind for innovation are key for a fledgling entrepreneur to attain success, said Md Arfan Ali, president and managing director of Bank Asia. In future, there will be no physical form of money. Introduction of technology like fintech and blockchain will replace traditional banking and banking transactions will be easier and wide-ranging. Such innovation not only serve the country but also uphold the image of the country on global stage. On the other hand, if we can’t have secured and modern payment platform, we have to rely on foreign conglomerates. Every citizen of Bangladesh will have a bank account within 10 to 15 years.
One Bank re-elects chairman
Sayeed H Chowdhury has recently been re-elected chairman of One Bank for a one-year term from August 1. The board of director of the bank also re-elected Asoke Das Gupta as its vice chairman and Zahur Ullah as chairman of the executive committee. Chowdhury is the founder chairman and CEO of conglomerate HRC, a member of the British Institute of Management and chairman of Media New Age Ltd and Information Services Network Ltd.
CPD to form citizens’ commission on banking
The Centre for Policy Dialogue has decided to set up a “Citizens’ Review Commission on Banking” because of the deteriorating health of the banking sector and the ‘inertia’ of the government to address the problems. The board of trustees (BoT) of the think-tank took the decision at its 53rd meeting in Dhaka yesterday. The commission will include eminent economists, experts, private sector representatives and former bankers and government officials. The proposed Citizens’ Review Commission on Banking seeks to establish transparency regarding data and information on the sector, identify the root causes of the malaise, and, suggest remedial measures for the policymakers.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|FTSE100||7,171.69 ||↓52.16 ||↓0.72%|
|Nikkei 225|| 20,417.56 ||↓167.75||↓0.81%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 53.52 ||↓0.11||↓0.21%|
|Crude Oil (Brent)|| $ 58.86 ||↓0.08||↓0.14%|
|Gold Spot||$ 1,486.13 ||↑11.71||↑0.79%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.7464|
|GBP 1||BDT 100.665|
|EUR 1||BDT 92.6997|
|INR 1||BDT 1.16529|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<