Stocks
Tk 3cr Govt Share Bond Trading Started
Government Securities or treasury bonds have started, a total number of 250 tradings, for the first time in the stock market. Its market capital is 3 lakh 16 thousand 808 crores.
On Monday, October 10 at 9:30 am, both stock markets, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE), started this transaction.
Regular investors can buy and sell shares and bonds. As a result, the contribution of the share market to the country’s GDP has also increased from 14pc to 20pc in one fell swoop. Besides, not a single bond was bought and sold in an hour from the starting of trading, i.e. from 9:30 am to 10:30 am.
Acting Managing Director (MD) of DSE, Saifur Rahman Majumder affirmed that, after institutional investors, trading of government securities has started for the benefit of regular investors. Here individual investors can buy and sell bonds.
He said, as a result of trading of bonds in DSE, its share market has increased from Tk 521 thousand crores to Tk 838 thousand 484 crores. Hence, the contribution of share market to GDP has increased from 13-14pc to 20pc.
He also said that although the participation of investors is low at the start of the transaction, the bond market will gradually become more popular than the shares.
CSE Acting Managing Director, MD, Ghulam Faruque said the same thing in a different tone.. He said that the trading of bonds of government institutions has started to diversify the share market. As a result, regular investors can make profit by buying and selling bonds of government institutions. It was our long-awaited.
Bangladesh Bank Governor Abdur Rauf Talukder said at an event of BSEC in this regard, there are two parts of the share market. One of them is equity market, another is depth market. Equity market is the share market. This share market has developed in Bangladesh. Another part of the stock market that should really grow is the bond market. But it did not develop much. That’s why the secondary market isn’t really doing that well. I felt more after becoming the governor that the support needed to grow the bond market.
The governor said, many of our banks are issuing Tier-II bonds. Subordinated Bonds. Till I joined, the trend was that if one bank issued a bond, another bank had to take it. After I joined I made it a rule to sell fifty percent bonds outside. Bank bonds are all secured bonds. No bank has failed in Bangladesh to date. I think it will not fail even in the next 50 years. Then all bonds are secured. Why they will not come to the market? Why won’t common people buy it? I have had 5 to 6 banks so far. We have made it mandatory for everyone to issue 50pc bonds in the share market. We are trying to raise bonds here.
Meantime, prominent economist AB Mirza Azizul Islam said that along with the government, entrepreneurs can take long-term loans from bonds. This will lessen the debt pressure on the bank.
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
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