Stocks
Bangladesh Money Market Faces Liquidity, Discipline Concerns: BSEC Chief
Professor Shibli Rubayat-Ul-Islam, Chairman of the Bangladesh Securities and Exchange Commission (BSEC), has identified liquidity mismanagement and indiscipline as the biggest problems for the money market presently.
Speaking at the Inter-University Capital Market Based Real-Time Investment Competition called “NeXTor,” organized by the East West University Investment and Finance Club, Shibli mentioned that lenders often meet investment demands by lending for the long term with money collected for the short term.
He noted that since the country’s independence, the economy has been largely shaped by the money market, but mismanagement of funds has led to a surge in non-performing loans (NPLs) there.
According to recent Bangladesh Bank figures, as of December last year, NPLs at banks amounted to Tk1,45,633 crore, which was 9% of their total outstanding loans, up from the previous year’s 8.16%.
Former Bangladesh Bank Governor Mohammed Farashuddin, speaking at the same event, echoed the sentiment of the BSEC chairman. He highlighted challenges faced by banks in managing funds for long-term investments due to their tendency to gather short-term deposits, sometimes for just one day.
Farashuddin pointed out that the country’s economy consistently grapples with an investment gap to satisfy the demand, suggesting that the capital market has the potential to bridge this divide and play a pivotal role in long-term investments.
Shibli emphasized the evolution of the country’s capital market beyond equity-based investments to offer diverse options capable of meeting long-term investment needs. He proposed the establishment of a robust capital market, including the introduction of a debt board for fundraising through bonds and an SME platform supporting small businesses.
He also disclosed plans to launch a commodity market through the Chittagong Stock Exchange to mitigate issues such as over and under-invoicing.
At the event, the East West University Investment and Finance Club recognized three winners in the real-time investment competition, which saw participation from 22 universities. Dhaka University emerged as the winner, with Bangladesh University of Professionals and North South University securing second and third positions.
Shibli highlighted that through such competitions, participants gain practical insights into the capital market, emphasizing the importance of experiential learning beyond theoretical knowledge.
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
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.
