Stocks
Stocks Inch up in the Essential Week
Amid mixed macroeconomic updates, profit-booking pressure in some overbought stocks kept pushing the indices down last week, while the continuation of investors’ appetite for some selective trendy stocks helped indices offset those.
DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), closed the week 0.75pc higher at 6,564, which had a 0.7pc correction in the previous week.
The core index crossed the 6,600-mark and the single-day turnover hit a record high of Tk2,800 crore on Tuesday, but couldn’t hold the upbeat momentum as investors took a cautious stance, influenced by the gloomy earnings forecast of the major companies amid the macroeconomic adversities, EBL Securities wrote in its weekly market commentary.
The country’s foreign currency reserves dropped below $37 billion last week as the Bangladesh Bank (BB) was selling dollars to banks.
Stockbrokers, however, observed investors’ cautious optimism amid the trend that import payment pressures were easing last month due to lower fuel and capital machinery procurement.
LankaBangla Securities wrote citing the central bank, Bangladesh’s import bills fell to $5.38 billion in August from $6.79 billion a month ago. Fuel oil and capital machinery contributed more than 65% to the $1.41 billion import fall in August.
Also, a reported slowdown in apparel exports in the first 18 days of September increased investors’ caution, while remittance inflow still remains a source of hope.
Investors were busy with forecasting the upcoming earnings and following two declining sessions, the demand for oversold mid-cap stocks increased on Thursday, reflecting the increased tendency of portfolio rebalancing – booking profits to shift to other stocks.
With more trading activity, the average daily turnover on the DSE notably increased by 43pc to Tk2,022 crore last week.
Investors were most active in the pharmaceuticals and chemical sector which contributed to nearly one-fourth of the week’s turnover in the DSE, followed by miscellaneous and engineering sectors.
Travel and leisure generated the highest return last week as the sector’s total market capitalization increased by 20.5pc while following the recent gains jute sector faced the sharpest 13pc correction.
Only 86 advancing scrips, mostly mid-cap ones, offset the decline of 166 while the price of 134 scrips remained unchanged at the DSE.
In the Chittagong Stock Exchange, the broad-based index CSCX increased by 1.07pc to 11,596 last week, while CSE30, the blue-chip index of the port city bourse, inched down by 0.05% to 13,505.
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.
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