Stocks
“New Mandate for Block Trades in the Bourses”
The stock market regulator BSEC, Bangladesh Securities and Exchange Commission relaxes the conditions of trades in the block market. Investors can trade shares in blocks for two to three lakh takas. This information is known from BSEC sources.
Also, BSEC sources said that the rumors about the withdrawal of floor price or the imposition of a minimum limit of price reduction of more than 1 percent are not correct.
It is known that according to the rules of BSEC, in the case of trades in the block, at least five lakhs of shares have to be exchanged. However, the regulatory body has decided to relax this condition to increase trades in the block. Instead of five lakh taka, the block trades will be kept at two or three lakh taka. BSEC will issue an order in this regard soon.
In the meantime, most shares in the stock market are now stuck at the floor price set by the regulator. As the share price of these companies is stuck at the floor price, there is no trading of shares. On the other hand, shares can be traded at 10 percent less than the floor price in blocks from the main market. As most of the stocks with good fundamentals are now stuck at the floor price, relaxation of the Tk 5 lakh condition in the block may increase the volume of trades in the market.
Previous year July, mistrust in the stock market took an extreme form. The main index of Dhaka Stock Exchange fell on 14 working days out of 19 working days of July. Out of this, DSE fell for 9 consecutive working days from July 12. The prices of hundreds of companies are falling every day. On July 28, ‘DSE X’ dropped to 5,000. In such situation, the regulatory agency Bangladesh Securities and Exchange Commission issued a floor price in the stock market again on July 28 to prevent the continuous price fall. The floor price is determined as the average of the five-day closing prices of all securities.
There was some relief in the stock market after setting the lowest price for the shares. The big jump in the index was on the next working day (July 31) after the floor price was issued. Of the 382 companies that participated in the transaction, 362 shares rose. The index added 153.45 points. And the market capitalization increased by Tk 21 thousand crores in the first week of the floor price issue.
In September, the trend of index jumps continues to decline. The volume of share trades also dropped. As again, the regulator allowed the sale of shares at a price 10 percent lower than the floor price in the block on November 15. After that, the volume of trades in the block started to increase. Among them, about 52 percent of the total trades in the Dhaka Stock Exchange on December 27 were occupied by blocks which results if the trades conditions are relaxed in the block, the speed of share trades in the market may increase. Therefore, BSEC is offering block trades for two or three 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.
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.
