The number of Beneficiary Owners (BO) in the capital market of the country increased by 4596 in the month of August. Read more: https://www.unb.com.bd/category/Business/stakeholders-collaboration-innovative-business-model-stressed-for-transition-to-circular-economy-in-bangladeshs-textile-and-garment-industry/121415 This information is revealed by the Central Depository of Bangladesh Limited (CDBL), an organization that keeps shares and BO accounts automatically. According to CDBL data, the current number of women and men investors in the country's capital market is 1747621, which was 1743 25 till last July 31. Read more: https://www.unb.com.bd/category/Bangladesh/fm-momen-discusses-trade-investment-issues-with-us-bangladesh-business-council-leaders/121299 The number of male investors was 134372 and the number of female investors was 422301 on July 31 of this year in two types of BO accounts. Read more: https://www.unb.com.bd/category/Business/shiny-object-syndrome-in-business-career-symptoms-effects-prevention/120986 And the number of institutional investors is 16352. In all, the total BO account of the investors was 174325.
Banks and asset management companies will raise investment in the stock market for stabilising the market after a drastic fall of share prices. Their commitment came after a meeting of the representatives of merchant banks and asset management companies with the Bangladesh Securities and Exchange Commission (BSEC) on Thursday. The meeting also discussed raising the confidence of investors in the capital market and bond market for the sake of the development of the stock market. Read: BSEC sits with stock market stakeholders Thursday after drastic fall of share prices With BSEC Commissioner Dr Sheikh Shamsuddin Ahmed in the chair, BRAC Bank CEO and Managing Director Salim RF Hussain, Shanta Asset Management Vice Chairman Arif Khan, EBL Securities Managing Director Sayedur Rahman, Standard Chartered Bank Managing Director Muhit Rahman, City Bank AMD and CFO Mahbubur Rahman and representatives of other related institutions attended the event. BSEC Commissioner Shamsuddin explained the global situation and termed the bond market as an important source of long-term financing. He emphasized making the bond market more sustainable for the development of the country's capital market and utilizing the possibility of long-term financing through bonds. He also said that the government is playing a supporting role in the development of the bond market and the activities are ongoing in coordination with the IMF, World Bank, and other international organisations. Read: Al-Arafah Islami Bank approves 15% dividend Another special meeting of BSEC with asset managers and fund managers was held on the same day. They discussed the current market situation and the development of existing mutual funds in the capital market. BSEC Commissioner Dr. Mizanur Rahman instructed the present fund managers and asset management companies to protect the interests of the investors and conduct their activities as fair procedures.
The technical glitch of brokerage houses at Dhaka Stock Exchange (DSE) has been settled and trade transactions were made as usual on Monday, said a statement of DSE. According to DSE, the technical glitches of the entire brokerage houses have been resolved before the start of trading on Monday. After finding a problem Sunday night, a technical team worked and resolved it today (Monday) and the houses have successfully participated in their trading activities. Read: 2023 BRICS Summit: Lot of interest in how new members are chosen and which countries would be eligible Md Shafiqur Rahman, Deputy General Manager of DSE, issued a statement in this regard on Monday. Earlier, the trade settlement in the DSE was disrupted for about six hours yesterday due to a technical glitch. Because of the glitch, 63 stock brokers could not download trade data following trading activities and so, they could not settle any trade. Read: Digital Security Act to be replaced by Cyber Security Act 2023
A total of 1,17,522 BO (Beneficiary Owners) accounts of share market investors were canceled last month (July) in the capital markets for failing to pay the annual renewal fees. As per instruction of BSEC, the Central Depository Bangladesh Limited (CDBL), the sole securities depository of Bangladesh and recognized as the infrastructure backbone of the stock market, canceled these BO accounts through brokerage houses for non-payment of annual service charges or renewal fees. Also read: Stock markets witness fall for 4 days amid huge selling pressure According to the data of CDBL, on June 30 of this year, the BO account of investors was 18 60774. After one month, on July 30, that number decreased by 93224 to 17, 67,550. From there, in the last three days, 24298 BO accounts have been reduced to 17, 43,252. As a result, 1, 17,522 BO accounts of investors were canceled in the last month of this year. Earlier, on June 30 of this year, the BO account of investors was 18 60774. And on August 1, the BO account decreased to 17, 43,252. Also read: Companies that have not paid dividends yet will be penalised: BSEC Chairman
The country’s stock markets witnessed a fall in share prices of different companies for four consecutive working days due to huge pressure of share selling. The Dhaka Stock Exchange (DSE) lost 6 points while the Chittagong Stock Exchange lost 12 points on Tuesday, showing a fall of both the capital markets. Share prices of most of the companies fell against the rise in the price along with the index. As a result, the stock market fell for four consecutive working days. But before that, there was an upswing in the capital market last Wednesday. Also read: Stock market gained over Tk 10,185 crore capital last week According to DSE data, a total of 13, 65, 76,957 shares and units of 358 companies were exchanged in the market on Tuesday. Around Tk660. 95 crore has been transacted for these shares trading. Around Tk633.49 crore was traded the previous day. Transactions increased slightly on Tuesday than the previous day. On this day, the prices of 49 companies' shares increased, 121 companies' prices decreased and 188 companies' prices remained unchanged. Also read: Stock markets witness highest transaction Thursday in 5 and a half months The main index of DSE has decreased by 6.85 points from the previous day to 6,331 points. Among the other two indexes of the DSE, the DSE Shariah Index decreased by 1.35 points to 1,373 points. DS-30 index has decreased by 4.34 points to 2162 points. At the Chittagong Stock Exchange (CSE), the main index decreased by 12.36 points to 18709 points. Shares and units of 190 companies were traded on CSE on Tuesday. Among them, the prices of 41 companies have increased, 73 companies have decreased and 76 companies' prices remained unchanged. At the end of the day (Tuesday), Tk10.25 crore shares and units were traded in CSE. Around Tk 8.67 crore shares were traded on the previous day. Also read: Stock market witness a massive fall on Sunday after Russia attacks Ukraine
Four banks are facing a penalty of Tk 26.12 crore for not providing cash dividends, instead giving bonus dividends only, which is a violation of the rules of the stock market enlistment. The banks are Arab-Bangladesh Bank or AB Bank, Mutual Trust Bank, One Bank, and First Security Islami Bank Limited. According to the law, AB Bank will have to pay Tk1.72 crore, Mutual Trust Bank Tk 8.94 crore, One Bank Tk 5.0 crore, and First Security Islami Bank Tk 10.46 crore. According to the law, listed companies must pay cash dividends at least equal to bonus dividends. If the bonus amount is more than cash, the entire bonus share will be taxed at the rate of 10 percent. As such, the banks will have to suffer the penalty of additional income tax. This Act was enacted in FY 2018-19. The authorities of four banks say that bonus shares are given as dividend profit and this decision has been taken to increase the paid-up capital of the banks. The profit money will further strengthen the bank's capital. In the year 2022, from January to December, the profit of AB Bank was Tk 71. 54 crore. From there it has been decided to give a 2 percent bonus share dividend to the shareholders. The board of the bank has decided to issue only bonus shares without cash dividends. For this, a penalty of Tk1. 72 crore 72 has to be added to the bonus shares of Tk 17.22 crore at the rate of 10 percent. Mutual Trust Bank like AB Bank, has violated the National Board of Revenue Act by paying only bonus share dividends instead of cash shares. A penalty of Tk 8.94 crore at the rate of 10 percent of Tk 89.37 crore is imposed as a penalty under the income tax Act. One Bank will have to pay a fine of 10 percent of the profit of Tk 49.3 crore of bonus shares, i.e. about Tk 5 crore, as the company has only paid bonus share dividends instead of cash dividends. On the other hand, the total profit of First Security Islami Bank in 2022 was Tk 293.93 crore. From there it paid only a 10 percent bonus share dividend instead of a cash dividend to the shareholders. The bank's bonus share amounts to Tk 104.60 crore. A fine of 10 percent has been levied above this amount. The penalty amount is stood Tk10.46 crore. The bank authority will have to pay this penalty.
Shares were mixed in Asia on Tuesday as investors watched for the latest moves by central banks, while oil prices steadied after shooting higher the day before following an announcement that major exporters plan to cut production. Benchmarks rose in Tokyo, Shanghai and Seoul but fell in Hong Kong and Sydney. Australia's central bank kept its key interest rate unchanged at 3.60% “The Board took the decision to hold interest rates steady this month to provide additional time to assess the impact of the increase in interest rates to date and the economic outlook,” the Reserve Bank of Australia said in a statement, citing the usual lag between interest rate changes and their impacts. The S&P/ASX 200 in Sydney slipped 0.1% to 7,217.60. Shares fell in Bangkok. Markets were closed in India and Taiwan. Also Read: Saudis, other oil giants announce surprise production cuts; prices could go up Regional central banks have been varying their strategies as inflation wanes in some places but remains stubbornly high in others. Vietnam's central bank eased its benchmark rate on Monday to reflect a slowdown in the economy. Japan has kept its key interest rate at minus 0.1% and China has been easing rates to alleviate pressures on its vital property sector. Elsewhere in Asia, Tokyo's Nikkei 225 gained 0.3% to 28,270.26, while the Shanghai Composite index picked up 0.2% to 3,304.33. Hong Kong's Hang Seng lost 0.6% to 20,278.03, weighed down by losses in technology shares. On Monday, big gains for energy stocks helped offset losses for some big technology stocks on Wall Street. The S&P 500 rose 0.4% to 4,124.51. The Dow Jones Industrial Average gained 1% to 33,601.15. The Nasdaq composite lost 0.3% to 12,189.45. Also Read: Asian shares mostly sink on jitters after US bank failure Exxon Mobil and other oil producers leaped after Saudi Arabia and other producers said they’ll cut production by 1.15 million barrels per day from May until the year’s end. Less oil pumped means higher prices, as long as demand stays steady. Oil prices soared 6.3%. Higher prices for fuel revived fears about inflation and dented one of the hopes that has helped steady stocks recently, that sharp hikes to interest rates may soon end. Exxon Mobil jumped 5.9%. Marathon Oil 9.9% and BP 4.3%. A barrel of U.S. crude oil was 42 cents higher at $80.84 per barrel in electronic trading on the New York Mercantile Exchange. It jumped $4.75 to settle at $80.42 on Monday. Brent crude, the international standard, rose 45 cents to $85.38 in London. It gained $5.04 to $84.93 per barrel on Monday and is roughly back to where it was a month ago. But prices are well below where they were in March 2022, when Brent topped $130 per barrel after Russia’s invasion of Ukraine raised worries about energy supplies. Beyond raising gasoline prices and other costs for everyone, costlier oil could confound the expectation that slowing inflation might lead the Federal Reserve to ease its interest rate hikes. Lower rates tend to act like steroids for financial markets. U.S. stocks have tended to return an average of 8% in the three months following the peak of the Fed’s federal funds rate, according to Goldman Sachs. That includes six instances going back to 1982. Conversely, higher rates hurt all kinds of stocks but tend to hit high-growth companies the hardest. That puts extra pressure on Big Tech stocks that have an outsized effect on the S&P 500 and other indexes because of their immense size. In the first quarter, hopes for easier interest rates meant Big Tech stocks were among the main reasons for a gain in the S&P 500. Strategists at Morgan Stanley led by Michael Wilson are skeptical they'll continue to hold up better than others when the market is still under downward pressure, as they expect. Amazon was one of the heaviest weights on the index Monday, slipping 0.9%. Tesla fell 6.1% after it said over the weekend that deliveries in the first three months of the year fell short of analysts’ expectations, even though it still set a record. In other trading Tuesday, the U.S. dollar rose to 132.77 Japanese yen from 132.44 yen late Monday. The euro slipped to $1.0891 from $1.0905.
Markets advanced Friday in Europe and Asia, tracking a rally on Wall Street after a group of big banks offered a lifeline to First Republic Bank, the latest U.S. lender in the spotlight for troubles in the banking industry. Shares rose in Paris, London, Tokyo and Hong Kong but edged lower in Mumbai. U.S. futures edged higher, while oil prices gained. The S&P 500 jumped 1.8% Thursday, erasing earlier losses following reports that First Republic Bank could get help or sell itself to another bank. Markets have gyrated this week on concerns over the toll on banks from the fastest set of interest rate hikes in decades. The turmoil flared with last week’s collapse of Silicon Valley Bank, the second largest bank failure in U.S. history. “The market remains cautious; traders do not want to get overexcited, especially with investors still focusing on what can go wrong instead of what could go right,” Stephen Innes of SPI Asset Management said in a report. Germany's DAX gained 0.9% in early trading, to 15,102.37 and the CAC 40 in Paris was up 0.7% at 7,075.74. In London, the FTSE 100 rose 0.8% to 7,471.98. The future for the S&P 500 inched 0.1% higher while that for the Dow Jones Industrial Average was unchanged. Also Read: Asian shares mostly sink on jitters after US bank failure In Asia, Hong Kong's Hang Seng jumped 1.8% to 19,548.26 and the Shanghai Composite index added 0.7% to 3,450.55. Tokyo's Nikkei 225 index gained 1.2% to 27,333.79 and the Kospi in Seoul was up 0.8% at 2,395.69. Shares in major Japanese banks rebounded after falling sharply at times this week. Australia's S&P/ASX 200 added 0.4% to 6,994.80. India's Sensex was 0.1% higher while Taiwan's Taiex surged 1.5%. Stocks rallied Thursday on Wall Street after 11 of the biggest banks offered help for First Republic with a combined deposit of $30 billion. Since SVB's failure, investors have been on the lookout for banks with similar traits, such as many depositors with more than the $250,000 limit that’s insured by the Federal Deposit Insurance Corp., tech startups and other highly connected people who can spread worries about a bank’s strength quickly. First Republic Bank rose 10% Thursday after slumping as much as 36% early in the day. The Federal Reserve’s fastest barrage of hikes to interest rates in decades, to drive down inflation, has shocked the banking system following years of historically easy conditions. Higher rates raise the risk of recession and hurt prices for stocks, bonds and other investments. That latter factor hurt Silicon Valley Bank, since high rates forced down the value of its bond investments. U.S. Treasury Secretary Janet Yellen told a Senate committee on Thursday that the nation’s banking system “remains sound” and Americans “can feel confident” about their deposits. Wall Street increasingly expects this week's turmoil to push the Federal Reserve to hike interest rates next week by only a quarter of a percentage point. That would be the same sized increase as last month's, half the hike of 0.50 points that was earlier expected. The European Central Bank on Thursday raised its key rate by half a percentage point, brushing aside speculation that it may reduce the size because of all the turmoil around banks. All the stress in the banking system has raised worries about a potential recession because of how important smaller and mid-sized banks are to making loans to businesses across the country. Oil prices have slid this week on such fears. Reports on the U.S. economy are showing mixed signals. A report said fewer workers applied for unemployment benefits last week than expected. In other trading, U.S. benchmark crude oil gained 73 cents to $69.08 a barrel in electronic trading on the New York Mercantile Exchange. It picked up 74 cents on Thursday to $68.35 a barrel. Brent crude, the pricing basis for international trading, climbed 78 cents to $75.48 a barrel. The dollar fell to 133.26 Japanese yen from 133.76 yen. The euro rose to $1.0664 from $1.0611.
Chairman of Bangladesh Securities and Exchange Commission (BSEC), Professor Shibli Rubaiyat-ul Islam, has said sophisticated software and technologically knowledgeable manpower are required to check share market manipulation. BSEC is working to install efficient software so that unethical practices in share trading can be flagged immediately, he said. He said this at a roundtable on “Bangladesh Capital Markets’ Present and Future”, held in a Dhaka hotel today. Capital Market Journalists Forum (CMJF) and Bangladesh Merchant Bankers Association (BMBA) jointly organized this program. Professor Shibli said it takes six months to a year to identify a share market gambler in the existing system. “We can take action when the stock exchange promptly gives the investigation report. It usually takes six months to a year to scrutinize the evidence and punish the culprit. By this time, the investors have already suffered the consequences.” Read: BSEC show caused 15 brokerage houses for unethical practices Professor Shibli also sought cooperation of the media and said when journalists get information on share market manipulation, they should make investors aware through reports. He said that the finance ministry, ministers and even the prime minister are aware of capital market issues. “We have given IPO of 36 companies in the last two years with the aim of creating new jobs. Employment has been created for more than 3,000 people during this time,” he said. Capital market analyst Professor Abu Ahmed said, everyone knows how much British American Tobacco pays in taxes. They are listed in the stock market. They have to publish financial reports. But certain MNCs are doing business in Bangladesh and no one knows how much they pay in taxes. They are not listed. “Why are they not listed?” – Ahmed asked. Read: BSEC finds involvement of 9 companies in share price manipulation Chairman and former principal secretary of Capital Market Stabilization Fund Nozibar Rahman; former chairmen of BSEC, Farooq Ahmed Siddiqui and Dr. M. Khairul Hossain; Executive Director (ED) of Bangladesh Bank, Dr Ezajul Islam; Dhaka Stock Exchange Chairman Yunusur Rahman; Chittagong Stock Exchange Chairman Asif Ibrahim; representatives of Ministry of Finance, National Board of Revenue (NBR), Dhaka Stock Exchange, Chittagong Stock Exchange, ICAB, ICMAB, ICSB were present in the program. BMBA chairman Sayedur Rahman was in the chair and Ziaur Rahman, president of CMJF, moderated the event.
Stocks were mixed in morning trading on Wall Street Thursday as investors continued to review the latest updates on the economy and corporate earnings. The S&P 500 fell 0.1% as of 10:16 a.m. Eastern. The Dow Jones Industrial Average fell 52 points, or 0.2%, to 32,760 and the Nasdaq rose 0.1%. Oil prices edged lower and weighed on energy stocks. Exxon Mobil fell 1.8%. A mix of retailers and industrial companies made solid gains. Best Buy rose 1.9% and Deere rose 1.6%. The yield on the 10-year Treasury fell to 2.69% from 2.74% late Wednesday. Read: Asian stocks higher as US-China tensions rise Stocks have meandered week, leaving major indexes mostly higher. August’s gain follows a standout July that was the S&P 500′s best month since late 2020. But markets remain volatile as investors try to determine the economy’s path ahead amid the highest inflation in four decades and efforts from central banks to fight higher prices. Earnings remain in focus on Wall Street as investors look for more clues on how inflation is impacting various industries. Twinkie maker Hostess fell 5% after giving investors a disappointing profit forecast for the year. Bleach and consumer products maker Clorox fell 4.2% after also announcing a weak earnings forecast.