Stocks
Doreen Power Shuts Down Narsingdi Power Plant as PPA Expires
Doreen Power Generations and Systems, a publicly listed company, has ceased operations at its 22MW Narsingdi power plant following the expiration of its power purchase agreement (PPA) with the Bangladesh Rural Electrification Board (BREB).
This comes after the recent shutdown of its 22MW Tangail power plant due to the expiry of the PPA with the Bangladesh Power Development Board (BPDB). Both plants, operational since 2008, had signed 15-year agreements to supply electricity to the government. The closure of Doreen Power’s Feni plant is anticipated in February 2024 as its PPA approaches expiration.
Concerns were raised by ACNABIN Chartered Accountants, the independent auditor, as all three power plants faced closure by February next year due to contract expiry. The shuttered condition will persist until further instructions from the BPDB or the Ministry of Power, Energy, and Mineral Resources. Doreen Power, seeking a contract extension, disclosed its application for the same.
The company, with three subsidiaries collectively producing 225MW, reported that nearly 10% of its consolidated revenue and 23% of its consolidated profit in FY23 were attributed to the three power plants. In the same fiscal year, the consolidated profit fell by 61% year-on-year to Tk64.48 crore, primarily due to foreign exchange losses. Doreen Power has recommended an 11% cash dividend for FY23. The power company’s shares closed at Tk61 each on the Dhaka Stock Exchange.
Reviewing the U.S. Stock Markets, the Nasdaq Composite, recorded a decent loss of 1,023 points, reaching a closing value of 16,690 points by the end of the week. Similarly, the S&P 500 index showed a positive trend, losing 240 points to settle at 5,408 points. Meanwhile, DJIA Index experienced a notable hike, adding 1,218 points during the week and concluding at 40,345 points after a week of gaining.
In contrast, Russell 3000 Index saw a loss in week performance, with a slight drop of 141 point to reach 3,077 points by the end of the week.
Moving to Russell 2000 Index, demonstrated a notable lost of 126 points, ending the week at 2,091 points.
In the Outgoing week, the European stock market displayed a mixed performance.
Here is the data on the weekly performance of the European Stock Market, The STOXX Europe 600 index, which is considered a leading benchmark for the European market and covers approximately 90 percent of the market capitalization across 17 countries, reported a loss of 18.49 points to close at 506.56.
The United Kingdom’s FTSE 100, one of the most widely followed indices in Europe, also showed a significant drop, losing 195 points or finishing the session at 8,181.
In Germany, the DAX 30 index, added by 605 points to reach 18,301, while France’s CAC 40 decreased by 278 points to stop at 7,352 at the end of the trading day.
Italy’s FTSE MIB, which covers the top 40 stocks traded on the Milan Stock Exchange, decreased by 1,081 points to 33,291. However, Spain’s IBEX 35, lost by 228 points, to close at 11,173.
A review of South Asian stock markets shows that India’s Bombay Stock Exchange (BSE) index BSE Sensex has lost 1,182 points during the week. At the end of the week, the index stood at 82,365 points. On the other hand, the Nifty-50 index of the country’s National Stock Exchange dropped by 383 points last week. At the end of the week, the index stood at 24,852 points.
Pakistan Stock Exchange Index ‘KSE 100’, added 459 points last week. After a week of losing, the index settled at 79,002 points.
On the other hand, The Sri Lankan stock market index loss, and the Colombo Stock Exchange index ‘ASPI’ decreased by 94 points in a week. After a week the index settled at 10,775 points.
Bhutan’s stock market index ‘BSI’ dropped by 9 points hence the index stood at 1,500 points throughout the whole week. Nepal’s ‘NEPSE’ lost 22 points, therefore the index stands at 2,727 points.
Hence Dhaka Stock Exchange: The benchmark index ‘DSEX’ lost by 75.77 points or 1.31 percent, in the outgoing week. At the end of the week, the index stands at 5,728 points.
