Stocks
BSEC Declines Islam Oxygen’s IPO Application
The initial public offering (IPO) application of Islamic Oxygen Limited, seeking to be listed on the stock market through the primary public offering, has been rejected by the Bangladesh Securities and Exchange Commission (BSEC). The institution’s application was canceled by the regulatory authority due to the involvement of controversial figure Kazi Saifur, who had multiple previous convictions by the BSEC for various offenses. Moreover, Kazi Saifur had also been banned from the stock market for an extended period of time.
On Thursday, June 1, the Managing Director and spokesperson of the Bangladesh Securities and Exchange Commission (BSEC), Mohammad Rezaul Karim, confirmed the cancellation of the IPO application of Islam Oxygen Limited. It had been pending for a considerable period. However, the company has showcased its financial stability by demonstrating substantial assets. Nevertheless, the company failed to provide evidence of sales. In addition, there is an ongoing writ petition in the High Court regarding the value-added tax (VAT) exemption by the National Board of Revenue (NBR). Considering these factors, the IPO application of the company has been revoked.
Kazi Saifur, who had previously been involved in facilitating the listing of several weak companies in the stock market, was working as a pathway to bring Islam Oxygen into the share market. He particularly assisted these companies in preparing fabricated financial statements for listing.
Notably, Islam Oxygen Limited had sought to raise Tk 93 crore through the book-building method from the stock market. The company held its roadshow on October 25, 2021. Janata Capital and Investment Limited was responsible for managing the issue, while Sonali Investment Limited acted as the registrar to the issue. However, indirectly, the primary responsibility of the issue management was carried out by the controversial Shahjalal Equity Management. This same institution had already listed several weak companies in the stock market by providing fabricated financial statements. Furthermore, Kazi Saifur Rahman, a controversial figure in the stock market, is also associated with the ownership of Shahjalal Equity Management.
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.
