BB spurns securities regulator’s request

The Bangladesh Securities and Exchange Commission, or BSEC, sought the access as part of the government’s efforts to develop the bond market and arrange long-term financing. A committee headed by financial institutions division secretary Ashadul Islam has recommended a number of measures, including the issuance of bonds, to raise fund. Besides, it suggested the Commission create its own database and offer the banks and financial institutions access to it to ensure that defaulters of bonds and debentures cannot secure fresh loans. A senior finance ministry official told the FE that, presently, issuers of bonds and debentures who defaulted on repayment to investors can take out loans easily owing to the absence of reliable information of such debt tools. He said as an alternative to long-term bank loans, the government is attaching high priority to the development of the stock market and issuance of corporate bonds. In a study, the International Finance Corporation, or IFC, said Bangladesh’s fixed income market remains small and under-developed, despite the economy is set to reach US$274 billion. It said the country’s bond market reached only $16 billion or 6.0 per cent of gross domestic product in 2018 while the Indian bond market accounts for 16 per cent of the economic output. The study identified high taxes, regulatory barriers, unclear project pipeline, poor access to investors, high transaction costs for issuers, and competition with other fixed-income products as constraints.

Source: https://today.thefinancialexpress.com.bd/first-page/bb-spurns-securities-regulators-request-1581873913

DSEX scales 4,734 on buying binge

DSEX, the Dhaka Stock Exchange (DSE) prime index, crossed the 4,700-mark on Sunday after two-and-a-half months amid investors’ growing confidence in the market. The market opened on a flying note and remained vibrant throughout the session amid strong buying pressure from the investors, including global fund managers. DSEX jumped 169.54 points or 3.71 per cent to settle at 4,734, the highest since December 2, last year. DSEX accumulated 349 points, and DSE market-cap rose to Tk 198 billion in the past four straight sessions, after the Bangladesh Bank (BB) issued a circular confirming fund support to boost the ailing capital market. The central bank on February 10 allowed 59 scheduled banks to form a Tk 2.0 billion special fund for each of them by taking low-interest loans from the BB to invest in the stock market. In line with the soaring index, turnover, another important market indicator, also rose to Tk 9.16 billion on the country’s premier bourse, climbing further by 25 per cent over the previous day’s mark of Tk 7.30 billion. It was the biggest single-day transaction in more than one year since February 14, 2019, when the turnover totalled a record of Tk 9.32 billion. The stockbroker noted that the central bank’s fund supportive measures and the ADB’s lending of $170 million for strengthening the capital market have boosted the investors’ confidence. On Sunday, the gainers took a strong lead over the losers, as out of the 356 issues traded, 293 closed higher, 40 ended lower, and 23 remained unchanged on the DSE trading floor. The Chittagong Stock Exchange (CSE) followed the suit with its All Shares Price Index – CASPI – soaring 533 points to close at 14,436, and Selective Categories Index – CSCX – rising 325 points to finish at 8,758.

Source: https://today.thefinancialexpress.com.bd/first-page/dsex-scales-4734-on-buying-binge-1581874324

Top ten cos snare one-fifth turnover

Ten most traded firms accounted for one-fifth transactions on the Dhaka Stock Exchange on Sunday. LafargeHolcim topped the chart after a single-day break. Market operators said investors remained active on LafargeHolicm after the Supreme Court had approved amalgamation of its subsidiary Holcim Cement (Bangladesh) with its parent company LafargeHolcim recently. According to data available with the DSE, about 6.63 million shares of LafargeHolcim were traded, generating a turnover of Tk 322 million, which was 3.51 per cent of the day’s total turnover of Tk 9.16 billion. The multinational cement manufacturer’s price closed at Tk 48.50 on Sunday, remaining unchanged over the previous session. The company’s consolidated earnings per share (EPS) in nine months for January-September, 2019 was Tk 1.01 as against Tk 0.42 for January-September, 2018. The LafargeHolcim, which was listed on the DSE in 2003, disbursed 10 per cent cash dividend for the year ended on December 31, 2018. The company’s paid-up capital is Tk 11.61 billion and authorised capital is Tk 14 billion while the total number of securities is 1.16 billion. The turnover of Indo-Bangla Pharma was Tk 153 million. The company’s share price shed 1.20 cent to close at Tk 24.60 each. Summit Power featured a turnover of Tk 150 million. The company’s share closed at Tk 42.40, gaining 1.68 per cent. The turnover of SS Steel was also Tk 150 million. Its share price rose 4.51 per cent to close at Tk 13.90 each. Singer Bangladesh featured a turnover of more than Tk 148 million. The company’s share closed at Tk 176.20, gaining 1.97 per cent. Paramount Textile also made its way to the day’s top turnover chart, with shares worth Tk 147 million changing hands. The company’s share price advanced 0.16 per cent to close at Tk 61.60 each.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/top-ten-cos-snare-one-fifth-turnover-1581876496