Stocks
BSEC nudges to except bonds from capital market exposure
Bangladesh Securities and Exchange Commission, BSEC has recently sought the Bangladesh Bank for the 2nd time to exclude fixed-income securities – bonds, Sukuks and asset-backed securities – while calculating the capital market exposure of banks.
BSEC spokesperson and Executive Director Rezaul Karim said fixed-income securities are less erratic than shares and have lower extent of capital gain or loss. This is why the BSEC asked the central bank to exclude them while calculating exposure.
In terms of Bangladesh Merchant Bankers Association President Md Sayadur Rahman, the investment capacity of banks is dropping because of the listing of bonds on the capital market.
“Since they are not erratic, all types of bonds should be kept out of exposure calculation,” he added.
Ershad Hossain, managing director of the City Bank Capital Resources Limited, said the Bangladesh Bank should revisit the inclusion and exclusion of different asset classes that is equity, quasi-equity, and debt securities in the capital market exposure in a rational manner, instead of considering them on the basis of capital market listing.
“My logic is, if you list a bond, it will create an opportunity for bondholders to exit by selling its units, rather than waiting for it to mature,” he said.
In September this year, the Bangladesh Bank informed the securities regulator that banks have more chances to invest in the capital market, particularly in bonds.
Previous week, Treasury bonds, which are out of the capital market exposure limit, went live on trial trading in the bourses.
On the contrary, perpetual bonds are issued to raise AT1 capital to comply with the central bank’s Basel III guidelines. These bonds will include exposure when it will be listed on the stock exchanges.
6 perpetual bonds are already listed on the bourses which are included in the capital market exposure.
In August this year, the Bangladesh Bank allowed banks and non-bank financial institutions (NBFIs) to calculate their capital market exposure based on the cost of investments, instead of the market price of their held securities.
After that, banks and NBFIs do not need to sell shares to stay within their exposure limit after capital gain.
The central bank responded to repeated requests from the securities regulator and the investment industry as they believed the measure would help stabilize the capital market.
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.
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