Daily Market Commentary

DSE Market Commentary @ September 26, 2021.

  • Welcome to the trading at Dhaka Stock Exchange (DSE) which has begun today on Sunday, September 26, 2021.
  • Today trading started at DSE with mixed movement at the beginning.
  • At DSE, trading has been ongoing with the following trading period: Pre-Opening Session from 9:45 AM to 10:00 AM, Continuous Session from 10:00 AM to 2:30 PM and Post-Closing Session from 2:30 PM to 2:45 PM.
  • Prime Minister Sheikh Hasina has termed Bangladesh’s membership in the New Development Bank as a time-befitting achievement that will open a new avenue of foreign financing. She said it will play a supportive role in achieving the country’s development goals.
  • Bangladesh has joined the New Development Bank (NDB), a multilateral development bank set up by Brazil, Russia, India, China and South Africa (BRICS), as a member state.
  • The joining was confirmed after the country submitted its “Instrument of Accession” to the Brazilian government on September 16, said the Bangladesh Permanent Mission at UN yesterday.
  • The NDB — established by BRICS in 2015 — earlier initiated its membership expansion and welcomed the admission of Bangladesh, the UAE, and Uruguay as new members.
  • NDB’s board of governors authorised the bank to conduct formal negotiations with prospective members in late 2020.
  • After a round of successful negotiations, the NDB approved the admission of the UAE, Uruguay and Bangladesh as its first new members.
  • The European Commission has proposed a new GSP (Generalized Scheme of Preferences) framework which focuses on core issues like climate protection and good governance, and lowers thresholds for exports which, an economist and businessmen fear, may limit Bangladesh’s gains from “GSP plus” in key export items like apparels. 
  • Insurance Development and Regulatory Authority (IDRA) has recently urged the stock market regulator not to approve any initial public offering (IPOs) for insurers without a no-objection certificate (NOC) from their primary regulator.
  • The development came after the recent IPO approval to Sena Kalyan Insurance Company by the Bangladesh Securities and Exchange Commission (BSEC) without a NOC from IDRA. However, IDRA said the company received a NOC from the insurance regulator later to go ahead with its listing plan.
  • As per IDRA Act 2010, sponsors must hold 60% shares in their insurance companies.
  • The companies will collect the rest of the amount from the general public through stock market listing within three years of their registrations, said IDRA Act. 
  • If insurers fail to collect the portion from the general public within the stipulated time, IDRA can charge a penalty from the companies. It is also mandatory for insurers to take NOC from their first regulator regarding IPO applications.
  • The IDRA, in January this year had asked all the insurers to comply with its law ensuring 60% shareholding by sponsors alone while above 80% of the listed insurers are only complying with the BSEC’s demand for 2% shareholding by each director individually, and 30% shareholding by sponsors and directors collectively.
  • SANDHANINS: Sale Declaration of a Sponsor: Mrs. Rowshan Ara, one of the Sponsors of the Company, has expressed her intention to sell her entire holding of 1,49,810 shares of the Company at prevailing market price (in the Public Market) through Stock Exchange (DSE) within October 31, 2021.
  • SSSTEEL: Credit Rating Result: Emerging Credit Rating Limited (ECRL) has assigned the Company as “A-” in the long term and “ST-3” in the short term along with a stable outlook based on audited financial statements of FY 2015-2020, nine months un-audited financial statements of FY 2021 (July-March) and other quantitative and qualitative information up to the date of rating.
  • RDFOOD: Decision to launch new products: The Company has informed that Board of Directors of the Company has taken decision to launch 4 new products immediately (September 25, 2021) and launch a new Brand name which will be included 12 products (December 25, 2021).
  • The Company will invest an amount of total BDT 70.00 million (Import amount will be BDT 42.00 million and local cost will be BDT 28.00 million) approx. for machineries purchase.
  • Source of fund of investment will be 50% Bank Finance and 50% Own fund. Expected revenue will be BDT 110.00 million (approx.) per year.
  • In this circumstance, the Company expected from this financial year company’s revenue will be increase 15% to 18% from exiting revenue and expected profit may increase 12% to 15% from this investment.
  • The listed companies have distributed around Taka 16,000 crore in unclaimed and unsettled cash and stock dividends to the claimants in the last couple of months.
  • According to the Bangladesh Securities and Exchange Commission (BSEC), there was Taka 21,000 crore in unclaimed and unsettled cash and stock dividends before the settlement. So, there are now unclaimed stock dividends worth around Taka 4,000 crore and cash dividends worth Taka 1,000 crore left to form the capital market stabilisation fund, BSEC officials said.
  • On July 6, the BSEC issued a letter to all asset management companies, stockbrokers, merchant banks, and listed companies, including companies operating in the over-the-counter market, to transfer amounts held against unclaimed, undistributed or unsettled dividends or non-refunded public subscription money in cash or others including accrued interest thereon for a period of three years from the date of declaration or approval or record date to the CMSF by July 30. The deadline was later extended to August 30.
  • On June 27, the BSEC issued a gazette notification saying that CMSF must be a perpetual fund for functioning as a custodian of unclaimed or unsettled dividend (cash or stock) or un-allotted rights shares or non-refunded public subscription money in favor of the shareholders or stockholders or investors.
  • Broad indices at both the bourses ended in green in the past week amid investors’ caution, profit booking efforts and an increased volatility as demand for mid-cap manufacturing and services stocks increased. 
  • Among major sectors, engineering, travel and leisure, and textile sectors experienced price appreciation as the companies from the sectors are set to come up with their annual financial updates and dividends.  Mutual Funds, ceramics and IT sectors suffered the maximum correction.  
  • Today market started with mixed movement as DSEX rose to 7272.44 points by 10:02 AM but started falling and DSEX fall to 7266.88 points by 10:09 AM.
  • Moment later market rebounded as DSEX recovered to 7272.46 points by 10:11 AM but after that market again started falling and by 10:25 AM DSEX fall to 7258.73 points.
  • After that market started to bounce back again and by 10:44 AM DSEX reached 7277.29 points.
  • After that market started to gradually fall again and by 11:10 AM DSEX fall to 7265.77 points but again started to go uptrend and by 11:42 AM DSEX reached 7279.35 points.
  • But market started to fall gradually including few temporary recovery and by 2:00 PM DSEX fall to 7231.56 points.
  • Now 2:45 PM, after Post-Closing session, at the end of today’s (Sunday, September 26, 2021) trading, DSEX, , the benchmark index of the DSE, inched down by 13.45835 points or -0.18562% and closed at 7237.14170 points as against 7250.60005 points on the last session.

  • At the end of today’s trading, Market Turnover has increased and closed over Taka 2,200 crore range (Taka 22,572.937 mn). It has increased by over Taka 404 crore (Taka 4,048.647 mn) , +21.85588% from previous day’s turnover of Taka  18,524.29 mn.
  • Today a total of 376 company’s shares were traded. Among which prices have increased for 113 companies, prices have decreased for 230 companies and 33 companies have seen its prices remained unchanged.
  • Today’s SECTORwise trading at DSE have seen again PHARMACEUTICALS & CHEMICALS sector topped today’s market share followed by TEXTILE sector.
  • ORIONPHARM has topped the list for highest traded shares in terms of total traded value of Taka 1,420.5800 mn followed by BEXIMCO (Taka 991.3750 mn) , LHBL (Taka 912.4940 mn) and SPCL (Taka 815.1060 mn).
  • AAMRANET has topped the list of most % price change with 9.926 % price increase followed by TOSRIFA (9.910 %), KBPPWBIL (9.722 %), ETL (9.630 %), ZAHEENSPIN (9.524 %) price increases.
  • Dhaka Stock Exchange-DSE cooled off as stock investors continued to take profit since the market rally prompted investors to liquidate their positions in the recently outperformed stocks.
  • DSEX, the benchmark index of the DSE, inched down today.
  • Participation in the market advanced due to the dominant selling pressure as investors are favoring to book profit as they are concerned that a correction is overdue since the index skyrocketed from that of a year ago.

That’s  all  from  today’s market. See you on the next day.

Till  then  Good  Bye. Thank You.

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