13 firms under DSE scanner

FT ONLINE

The Dhaka Stock Exchange has decided to come down hard on 13 companies which did not pay any dividend in the last five years.

The companies have already been asked to explain why they failed to declare the dividend, KAM Majedur Rahman, managing director of the premier bourse said.

“We will review the companies' chances to return to profits. We will delist them if they cannot show any potential to start making profits again.”

The performance of the companies will be reviewed in line with the listing regulations, said the DSE in a statement yesterday.

The DSE move left a negative impact on the prices of the shares of the companies yesterday. Savar Refractories shares lost 10 percent, Imam Button shed 9.96 percent, Jute Spinners declined 9.93 percent, Samata Leather gave up 9.87 percent, Dulamia Cotton decreased 9.86 percent and Zeal Bangla fell 9.81 percent.

The share of Shyampur Sugar fell 9.74 percent, Meghna Condensed Milk lost 8.38 percent, ICB Islamic Bank fell 8.16 percent, Kay and Que down 7.50 percent, Beximco Synthetics shed 7.22 percent, Shinepukur Ceramics dropped 5.56 percent and Meghna Pet declined 1.30 percent. 

However, stocks gained amid increased participation of investors.

The DSEX, the benchmark index of the DSE, rose 28.47 points, or 0.53 percent, to finish the day at 5,381.88.

Turnover, another important indicator, also jumped 11.14 percent to Tk 710.52 crore, with 19.65 crore shares and mutual fund units changing hands.

BBS Cables dominated the turnover chart with 54.61 lakh shares worth Tk 60.13 crore changing hands, followed by United Power Generation, Regent Textile, Simtex Industries and Dragon Sweater.

Aman Cotton was the day's best performer with an 11.73 percent gain while Savar Refractories was the worst loser, shedding by 10 percent.