Banking sector snares 34pc turnover

FE Report | Wednesday, 20 December 2017

The heavyweight banking sector grabbed nearly 34 per cent transaction of the Dhaka Stock Exchange (DSE) Tuesday while Islami Bank Bangladesh Limited (IBBL) topped the chart.
Market operators said investors were active on banking sector issues throughout the trading session with six banks featured on the day's top transaction chart.
Out of 30 listed banks, share prices of 24 banks also closed higher, with Rupali Bank and Dutch-Bangla Bank featured on the day's top 10 gainer chart, soaring 9.84 per cent and 3.28 per cent respectively.
"As the year-end near, a section of investors took position on lucrative banking sector issues, especially Islami Bank's shares, amid optimism, taking it topped on the chart," said an analyst at a leading brokerage firm.
Recently, the Islami Bank has decided to issue "Second Mudaraba Redeemable Non-Convertible Subordinated Bond" of Tk 7.0 billion under Mudaraba principle of Islamic Shariah.
The board of directors has taken the decision to raise the Tier-II capital of the bank under Basel-III through issuance of 7 years non-convertible IBBL Mudaraba redeemable subordinated bond.
According to statistics available with the DSE, about 6.32 million shares of Islami Bank were traded, generating a turnover of Tk 223 million, which was 4.79 per cent of the premier bourse's total transaction.
The bank's share price hovered between Tk 34.60 and Tk 35.80, before closing at Tk 35.50 each, advancing 2.60 per cent over the previous session.
The bank reshuffled top positions early January this year. Changes have been made to the posts of the banks chairman, managing director, heads of various committees and chief of the Islami Bank Foundation in line with a decision at the bank board meeting on January 5.
The bank disbursed only 10 per cent cash dividend for the year ended on December 31, 2016.
The bank's third quarter (Q3) consolidated earnings per share (EPS) stood at Tk 0.31 for the July-September period of 2017 as against Tk 0.46 for the same period a year ago.

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