Stocks
Gachihata makes Tk 140cr profit but isn’t paying a penny to the investors
One of the listed firms on DSE, Gachihata Aquaculture, is making big profits from previous losses, the previous year, 2021, the company made a profit of Tk 140cr. But the company never gives anything to its investors. Earlier, the company deceived its investors by showing previous losses, This information is known from DSE sources.
From the sources, The firm, Gachihata Aquaculture is listed in the over-the-counter (OTC) market and announced the resumption of business, a few months back. On August 10, the company’s board of directors had a meeting with the regulatory body Bangladesh Securities and Exchange Commission (BSEC). Despite a loss of Tk 17 crore in 2020, the company’s financial report for 2021 shows a profit of around Tk 140 crore.
According to the financial report of Gachihata Aquaculture for the year 2021, the company’s EPS for the year 2021, was 672 taka 67 paisa. The total income of the company is 139 crore 24 lakh 20 thousand 437 taka.
The loss per share of the company in 2020 was 84 taka 77 paisa. That year, the company made a total loss of 17 crore 54 lakh 68 thousand 527 taka. There have also been accused that the company has been deceiving investors by showing losses for several years.
It is also known that Gachihata Aquaculture Farms is an agricultural company listed on the DSE. Despite owning 109 acres of land, the company has been in a bad shape for the past two decades due to lack of working capital. Gachihata Aquaculture was listed on DSE in 1998. Since 2002, it has been shifted to the OTC market due to failure to operate and pay any dividends.
On September 16 last year (2021), BSEC announced the abolition of the OTC market. As a result, BSEC has decided to transfer the companies covered by the OTC market to the SME platform and Alternative Trading Board (ATB) based on their financial records and future prospects. In line with this, the regulatory body shifted Gachihata Aquaculture from the OTC market to the SME platform in 2021.
From the data given on DSE website, 56.02pc shares of Gachihata Aquaculture are held by ordinary investors. Entrepreneur directors hold 25.86pc shares. The remaining 18.12pc shares are held by institutional investors.
In 2021, Gachihata Aquaculture has not paid any dividend to the ordinary shareholders who have invested in the company despite earning 672 taka 67 paisa per share. Even investors are not informed about the EPS.
When asked about the income in 2021, the Managing Director of Gachihata Aquaculture Farms Major (Retd.) Akhtaruzzaman did not stated anything. However, he said that the board meeting of the company is being held regularly. In response to a question, he said, there is nothing to inform the investors about the board meeting.
Analyzing the performance of the U.S. stock markets for the week, significant fluctuations were observed across various indices. While the Nasdaq Composite and S&P 500 indices faced declines, the DJIA Index managed to record gains. Conversely, the Russell 3000 and Russell 2000 indices also experienced losses, albeit to varying degrees. Let’s delve deeper into the dynamics shaping the week’s market movements.
Reviewing the U.S. Stock Markets, the Nasdaq Composite, recorded a decent drop of 893 points, reaching a closing value of 15,282 points by the end of the week. Similarly, the S&P 500 index showed a negative trend, losing 156 points to settle at 4,967 points. Meanwhile, DJIA Index experienced a notable hike, adding 3 points during the week and concluding at 37,986 points after a week of gain.
In contrast, Russell 3000 Index saw a losing in week performance, with a slight drop of 89 points to reach 2,840 points by the end of the week.
Moving to Russell 2000 Index, demonstrated a notable shed of 56 points, ending the week at 1,947 points.
In the Outgoing week, the European stock market displayed a varied 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 slight drop of 5.96 points to close at 499.29.
The United Kingdom’s FTSE 100, one of the most widely followed indices in Europe, also showed a significant drop, losing 100 points or finishing the session at 7,895.
In Germany, the DAX 30 index, shed by 438 points to reach 17,737, while France’s CAC 40 increased by 12 points to stop at 8,022 at the end of the trading day.
Italy’s FTSE MIB, which covers the top 40 stocks traded on the Milan Stock Exchange, increased by 158 points to 33,922. However, Spain’s IBEX 35, added by 43 points, to close at 10,729.
A review of South Asian stock markets shows that India’s Bombay Stock Exchange (BSE) index BSE Sensex has lost 1,156 points during the week. At the end of the week, the index stood at 73,088 points. On the other hand, the Nifty-50 index of the country’s National Stock Exchange dropped by 372 points last week. At the end of the week, the index stood at 22,147 points.
Pakistan Stock Exchange Index ‘KSE 100’, gained 592 points last week. After a week of gaining, the index settled at 70,944 points.
On the other hand, The Sri Lankan stock market index hiked, and the Colombo Stock Exchange index ‘ASPI’ decreased by 280 points in a week. After a week the index settled at 11,753 points.
Bhutan’s stock market index ‘BSI’ added 13 points hence the index stood at 1,526 points throughout the whole week. Nepal’s ‘NEPSE’ lost 52 points, therefore the index stands at 1,972 points.
Hence Dhaka Stock Exchange: The benchmark index ‘DSEX’ lost by 177 points or 3.03 percent, in the outgoing week. At the end of the week, the index stands at 5,686 points.
