Stocks
BSEC Approves Desco’s Tk607.69 Crore Preference Shares Issuance
![desco Dhaka Electric Supply Desco](https://en.orthosongbad.com/wp-content/uploads/2024/05/Dhaka-Electric-Supply-Desco.jpg)
The Bangladesh Securities and Exchange Commission (BSEC) has granted approval for the state-owned power distributor, Dhaka Electric Supply Company (Desco) Limited, to issue 60.76 crore preference shares at Tk10 each to the government against a share money deposit.
This decision was finalized in a BSEC meeting on Sunday.
According to Desco’s financial statement up to June 2023, the company received Tk607.69 crore from the government as a share money deposit for its annual development plan. Against this fund, Desco will now issue irredeemable non-cumulative preference shares to the secretary of the Power Division under the Ministry of Power, Energy, and Mineral Resources.
On March 2, 2020, the Financial Reporting Council (FRC) mandated that capital received as a share money deposit, or by any other designation, must be included in a company’s equity. This amount cannot be refunded and must be converted into share capital within six months from receipt.
Such share money deposits are also considered in the calculation of earnings per share (EPS).
Desco has decided to issue preference shares more than three years after the FRC directive.
Preference shares are a type of company stock where dividends are paid to shareholders before ordinary shareholders. In the event of bankruptcy, preference shareholders have priority in receiving payments from company assets over common stockholders.
The irredeemable nature of these preference shares means they will not increase Desco’s paid-up or common share capital. Consequently, the company is not obligated to pay any unpaid preference share dividends from previous years due to the “non-cumulative” nature of these shares.
The proposed conditions imply that if Desco achieves higher profits, the government will receive substantial dividends against the preference shares, whereas in the case of annual losses, no dividends will be distributed.
Since the new shares will not be included in EPS calculations, there will be no direct impact on the company’s financials. However, as preference shareholders, the government will receive dividends before ordinary shareholders, which might ultimately reduce the net profit available for common shareholders.
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Stocks
Weekly U.S. Stock Market Reports Diverse Performance
![U.S. Stock](https://en.orthosongbad.com/wp-content/uploads/2024/03/7xm.xyz120015.jpg)
Reviewing the U.S. Stock Markets, the Nasdaq Composite, recorded a decent loss of 1,023 points, reaching a closing value of 16,690 points by the end of the week. Similarly, the S&P 500 index showed a positive trend, losing 240 points to settle at 5,408 points. Meanwhile, DJIA Index experienced a notable hike, adding 1,218 points during the week and concluding at 40,345 points after a week of gaining.
In contrast, Russell 3000 Index saw a loss in week performance, with a slight drop of 141 point to reach 3,077 points by the end of the week.
Moving to Russell 2000 Index, demonstrated a notable lost of 126 points, ending the week at 2,091 points.
Stocks
European Stock Weekly Review Highlights Mixed Trend
![stock European](https://en.orthosongbad.com/wp-content/uploads/2023/04/fsdfsdf.webp)
In the Outgoing week, the European stock market displayed a mixed 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 loss of 18.49 points to close at 506.56.
The United Kingdom’s FTSE 100, one of the most widely followed indices in Europe, also showed a significant drop, losing 195 points or finishing the session at 8,181.
In Germany, the DAX 30 index, added by 605 points to reach 18,301, while France’s CAC 40 decreased by 278 points to stop at 7,352 at the end of the trading day.
Italy’s FTSE MIB, which covers the top 40 stocks traded on the Milan Stock Exchange, decreased by 1,081 points to 33,291. However, Spain’s IBEX 35, lost by 228 points, to close at 11,173.
Stocks
Weekly South Asian Stock reports Varied Performance
![south asian stock](https://en.orthosongbad.com/wp-content/uploads/2023/06/New-Project-4.jpg)
A review of South Asian stock markets shows that India’s Bombay Stock Exchange (BSE) index BSE Sensex has lost 1,182 points during the week. At the end of the week, the index stood at 82,365 points. On the other hand, the Nifty-50 index of the country’s National Stock Exchange dropped by 383 points last week. At the end of the week, the index stood at 24,852 points.
Pakistan Stock Exchange Index ‘KSE 100’, added 459 points last week. After a week of losing, the index settled at 79,002 points.
On the other hand, The Sri Lankan stock market index loss, and the Colombo Stock Exchange index ‘ASPI’ decreased by 94 points in a week. After a week the index settled at 10,775 points.
Bhutan’s stock market index ‘BSI’ dropped by 9 points hence the index stood at 1,500 points throughout the whole week. Nepal’s ‘NEPSE’ lost 22 points, therefore the index stands at 2,727 points.
Hence Dhaka Stock Exchange: The benchmark index ‘DSEX’ lost by 75.77 points or 1.31 percent, in the outgoing week. At the end of the week, the index stands at 5,728 points.