Dhaka Stock Exchange ends flat

The Dhaka bourse Sunday closed flat following the mixed performance played by major sectors. On the day, the turnover value crossed Tk 10 billion-mark after six sessions, as investors’ participation increased on Dhaka Stock Exchange (DSE). The banking sector witnessed correction, whereas other major sectors such as engineering and power performed mixed. DSE broad index DSEX displayed ups and downs throughout the whole session. At the end of the session, it closed 5339.18 points with a gain of 0.03 per cent, or 1.75 points. Shariah-based index DSES and blue chip index DS30 also closed flat. A total of 339 issues were traded on the DSE floor. Of those, 142 advanced, 171 declined and 26 were unchanged. The turnover value stood at above Tk 10.54 billion on the premier bourse.

Source:
https://thefinancialexpress.com.bd/stock/dhaka-stock-exchange-ends-flat-1532251905
http://www.newagebd.net/article/46649/stocks-flat-for-3rd-day-as-investors-keep-shedding-financial-scrips

Share prices of five cos rise abnormally

The share prices of five companies rose abnormally, although there is no undisclosed price sensitive information regarding the hikes. Following the unusual price increase, the Dhaka Stock Exchange (DSE) recently made queries. In response to DSE queries, the companies separately informed that there is no undisclosed price sensitive information for recent unusual price hike of shares. The companies whose share price rose abnormally are Eastern Lubricants, Bangladesh Welding Electrodes, Shinepukur Ceramics, Aman Feed and Bengal Windsor Thermoplastics. The share prices rose between July 7 and July 18, 2018. The share price of Eastern Lubricants rose 21 per cent or Tk 285 to close at Tk 1636.1 each in five sessions as of July 18. The share price of Bangladesh Welding Electrodes rose 23 per cent or Tk 4.1 to close at Tk 21.90 in sessions as of July 18. The share trading of Shinepukur Ceramics close at Tk 19.60 each with a rise of 4.84 per cent or Tk 0.9. During July 8 to July 18, the company’s share price rose 28 per cent or Tk 4.4 to close at Tk 20 each in eight sessions. The share price of Aman Feed rose 40 per cent or Tk 19.70 to close at Tk 68.90 each in 12 sessions as of Sunday. The share trading of Bengal Windsor Thermoplastics closed at Tk 43.30 each on Sunday with no change in price. The company’s share price rose 32 per cent or Tk 10.70 in nine sessions on Sunday.

Source: https://thefinancialexpress.com.bd/stock/bangladesh/share-prices-of-five-cos-rise-abnormally-1532258725

State banks allowed to lend more

Bangladesh Bank has given the go-ahead to four state banks to disburse more loans this year in the wake of shrinking lending activities of private commercial banks. The credit ceiling of Sonali, Janata, Agrani and Rupali was enhanced in the latest meeting that the banking watchdog organises once every three months to review the performance of public banks. The largest of the four, Sonali, saw the ceiling increase to 17 percent for 2018, up from 14 percent set for last year. The bank sat on huge deposits due to slow lending after the Hallmark loan scam. The bank’s credit growth was only 8 percent in 2017, far below the ceiling set in a memorandum of understanding signed between BB and the state banks. Sonali’s credit-deposit ratio was the lowest—35 percent—in December last year, which improved to 40 percent in April this year, according to central bank data. Sonali’s total deposit stood at Tk 1 lakh crore as of April this year against Tk 43,338 crore in the loan book. Agrani and Rupali were allowed to let their ceilings hit 20 percent this year, which is much higher than the industry average for private credit growth of 18 percent last year. Agrani’s limit was increased—which was 17 percent last year—as the bank is investing in three power projects of the government. The bank’s loan-deposit ratio was 55.48 percent as of April this year. Rupali is lending to some new business groups. The loan-deposit ratio of the bank was 61.30 percent as of April. The ceiling was kept unchanged for Janata at 17 percent for 2018.

Source: https://www.thedailystar.net/business/state-banks-allowed-lend-more-1609648

Appetite for junk stocks declines

The delisting of two junk stocks has left an impact on the capital market, as prices of 37 among 44 such companies continued to decline for the second straight day in Dhaka Stock Exchange yesterday. On July 18, the premier bourse delisted Modern Dyeing and Rahima Food Corporation for having no operations for over three years. Industry analysts welcomed the decision saying it would inspire good companies and investors to come to the market. However, stocks on the DSE gained slightly yesterday for a third consecutive day. The DSEX—the benchmark index of the Dhaka bourse—rose 1.75 points or 0.03 percent before finishing the day at 5,339.18. Turnover—another important indicator of the market—also jumped 15.6 percent from Thursday to Tk 1,054.93 crore yesterday, with 22.39 crore shares and mutual fund units changing hands. Among the major sectors, engineering increased 2.36 percent followed by life insurance 1.10 percent, miscellaneous 0.88 percent and pharmaceuticals 0.53 percent. Conversely, banks and financial institutions declined 1.42 percent and 0.79 percent respectively. Chittagong stocks also soared with the bourse’s benchmark index, CSCX, advancing 12.66 points to finish the day at 9,960.75.

Source: https://www.thedailystar.net/business/appetite-junk-stocks-declines-1609657

Telcos not welcome in mobile financial services

The central bank continues to flip-flop over letting mobile operators have a slice of the mobile financial services pie, with its latest decision being that carriers cannot hold any shares in companies that provide MFS. In the board meeting on July 15 that saw the MFS regulation get the green light, the Bangladesh Bank directors decided against letting the mobile operators in the MFS field. The MFS providers in the country will be led only by scheduled banks. The banks, which are already in MFS operation, are permitted to continue with their existing licences or they may form a subsidiary. In case of new applications, the banks will have to form subsidiary companies to run the MFS operation and the company will play as payment service providers (PSPs). One single bank, known as the parent bank, should have at least 51 percent of the equity of the PSP working as MFS. The remaining shares will be owned by NBFIs, NGOs and authorised entities. The subsidiary model-based MFS provider will require a minimum paid-up equity capital of Tk 45 crore. MFS providers will handle foreign inward remittances only if received through credits in nostro accounts of banks in Bangladesh. The amount will be deposited in MFS accounts of the beneficiaries in Bangladeshi taka. No outward or cross-boundary transaction will be undertaken by MFS providers. MFS providers are strictly prohibited from lending from their own funds. But, they can act as agents of banks and NBFIs licensed by the BB and micro-financial institutions licensed by the Microcredit Regulatory Authority in disbursing loans and in accepting repayments on behalf of the principle concerned.

Source: https://www.thedailystar.net/business/telcos-not-welcome-mobile-financial-services-1609666