Beximco issues pull down Dhaka stocks
Monday, 20 October 2008
FE Report
Dhaka stocks, led by Beximco Group issues fell Sunday as Dhaka Stock Exchange (DSE) sought explanations from the group for raising the paid-up capital of 'Shinepukur Ceramics' without the consent of the Securities and Exchange Commission (SEC).
Suspension of loan margins by the top merchant banks against the transaction of some Beximco issues also largely affected the day's trading.
Shinepukur Ceramics is an 'associate company' of Shinepukur Holdings Ltd.
Earlier the Shinepukur Holdings on October 05 disclosed that 3,50,11,800 ordinary shares of Tk. 10 each (Face value Tk. 35,01,18,000) of Shinepukur Ceramics Ltd will be offloaded through direct listing under the Dhaka and Chittagong Stock Exchange (Direct Listing) Regulations, 2006.
The DSE listing sub-committee in a meeting, made a number of queries on the proposed direct listing of Shinepukur Ceramics and also on the proposed amalgamation among Shinepukur Holdings Ltd and Beximco Fisheries Ltd. (transferor companies) with Beximco Ltd. (transferee company), a market source told the FE.
All the Beximco Group issues dived with the day's top six losers being from the leading conglomerate.
Before slipping into the red caused by the fear of amalgamation uncertainty of the group, the Dhaka Stock Exchange (DSE) was in the positive territory until around mid-session.
All the market barometers -- the benchmark DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 comprising blue chips -- lost 36.85 points, 32.85 points and 53.06 points to close at 2881.70, 2384.83 and 2417.33 respectively.
Beximco Textile dropped 14.89 per cent, Beximco Fisheries 14.81 per cent, Beximco Synthetic 10.71 per cent, Shinepukur Holdings 10.14 per cent, Beximco Pharma 9.15 per cent, Beximco Limited 9.01 per cent and BD Online Limited 7.11 per cent.
The company has recently sought permission to the prime bourse for amalgamation of Shinepukur Holdings Ltd. and Beximco Fisheries Ltd. (transferor companies) with Beximco Ltd. (transferee company).
Of the total 236 issues traded on the day, only 57 gained, 173 declined and six remained unchanged. But the IT issues shined on the day in the falling market on the possible launching of WiMAX facilities.
Meanwhile, two merchant banks suspended loan disbursement against the some selective stocks of Beximco Group.
"We suspended the loan against some particular Beximco stocks, which was done to mitigate the risk of our clients," said Sheikh Mortuza Ahmed, head of merchant banking division of the Prime Bank Limited.
"But a client can put their own funds on any stocks without taking loans. There is no restriction from our side in this case, " he added.
Under the agreement with our clients, we have to maintain some criteria in loan disbursement policy, the head of merchant banking division said adding "so the initiative taken today (Sunday) is not beyond our agreement."
Dhaka stocks, led by Beximco Group issues fell Sunday as Dhaka Stock Exchange (DSE) sought explanations from the group for raising the paid-up capital of 'Shinepukur Ceramics' without the consent of the Securities and Exchange Commission (SEC).
Suspension of loan margins by the top merchant banks against the transaction of some Beximco issues also largely affected the day's trading.
Shinepukur Ceramics is an 'associate company' of Shinepukur Holdings Ltd.
Earlier the Shinepukur Holdings on October 05 disclosed that 3,50,11,800 ordinary shares of Tk. 10 each (Face value Tk. 35,01,18,000) of Shinepukur Ceramics Ltd will be offloaded through direct listing under the Dhaka and Chittagong Stock Exchange (Direct Listing) Regulations, 2006.
The DSE listing sub-committee in a meeting, made a number of queries on the proposed direct listing of Shinepukur Ceramics and also on the proposed amalgamation among Shinepukur Holdings Ltd and Beximco Fisheries Ltd. (transferor companies) with Beximco Ltd. (transferee company), a market source told the FE.
All the Beximco Group issues dived with the day's top six losers being from the leading conglomerate.
Before slipping into the red caused by the fear of amalgamation uncertainty of the group, the Dhaka Stock Exchange (DSE) was in the positive territory until around mid-session.
All the market barometers -- the benchmark DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 comprising blue chips -- lost 36.85 points, 32.85 points and 53.06 points to close at 2881.70, 2384.83 and 2417.33 respectively.
Beximco Textile dropped 14.89 per cent, Beximco Fisheries 14.81 per cent, Beximco Synthetic 10.71 per cent, Shinepukur Holdings 10.14 per cent, Beximco Pharma 9.15 per cent, Beximco Limited 9.01 per cent and BD Online Limited 7.11 per cent.
The company has recently sought permission to the prime bourse for amalgamation of Shinepukur Holdings Ltd. and Beximco Fisheries Ltd. (transferor companies) with Beximco Ltd. (transferee company).
Of the total 236 issues traded on the day, only 57 gained, 173 declined and six remained unchanged. But the IT issues shined on the day in the falling market on the possible launching of WiMAX facilities.
Meanwhile, two merchant banks suspended loan disbursement against the some selective stocks of Beximco Group.
"We suspended the loan against some particular Beximco stocks, which was done to mitigate the risk of our clients," said Sheikh Mortuza Ahmed, head of merchant banking division of the Prime Bank Limited.
"But a client can put their own funds on any stocks without taking loans. There is no restriction from our side in this case, " he added.
Under the agreement with our clients, we have to maintain some criteria in loan disbursement policy, the head of merchant banking division said adding "so the initiative taken today (Sunday) is not beyond our agreement."