STOCKS | PSI
DSE raises Islami Commercial Insurance’s share price by 20% at debut
Due to the complexity of the company’s trading code, the Dhaka bourse deferred the debut, while the CSE went ahead as planned on Wednesday last week
Asiatic Lab's IPO at record 60% discount for general investors
Stocks tumble for third straight session
SME stocks plunging since October despite generous dividends
A majority of the companies listed with the SME board plunged since the first week of October, driving down the index by 23 per cent or 373 points to 1,277. Interestingly, the decline coincided with the corporate disclosures informing investors...
Economy
Loan repayment further relaxed
December 18, 2022
· The Bangladesh Bank has offered special concessions in the repayment of term loans given out to businesses.
· Term loans that are repayable between September and December this year cannot be classified if 50% of the instalments are paid during the quarter, while the remaining half of the instalments will have to be paid within one year after the maturity of the loans, says the central bank in a circular issued to the managing directors of scheduled banks on December 18.
· As per the previous instructions of the Bangladesh Bank, the borrowers were required to pay 75% of their loan instalments by December to avoid becoming defaulters.
From: https://www.tbsnews.net/economy/banking/no-defaulter-status-if-half-installment-paid-dec-553866
https://www.thedailystar.net/business/economy/news/bb-relaxes-loan-repayment-policy-again-3199591
https://www.newagebd.net/article/189347/bb-relaxes-rules-for-loan-repayment-by-businesses
Electricity at subsidized prices may not continue: PM
December 19, 2022
· The PM said that the government supplies electricity to everyone at subsidized prices though the production cost is much higher.
· But it will not be possible to provide electricity at lower prices considering the global recession, she said.
· "The actual cost will have to be paid," she said, adding that the price of gas has increased in the international market.
Overdue payments, LC problem stall private furnace oil import
December 19, 2022
· Overdue government payments and LC problem stall the import of furnace oil by the owners of private-sector power plants, shifting the burden of fuelling their units to the public exchequer.
· Sources say a number of private oil-fired power-plant owners have stopped importing furnace oil for complexities in opening letter of credit (LC) and delays in payment of dues by the government.
· Some others have squeezed importing the fuel despite having provisions of incentives against furnace-oil imports, they add.
· They are now shifting the job of importing furnace oil to the state-run Bangladesh Petroleum Corporation (BPC) to run their power plants.
· A senior BPC official said that BPC will have to import around 900,000 tonnes of furnace oil in 2023--three times the quantity they imported during 2022--due to the apathy from private sector to import the fuel.
· Currently, the BPDB owes around BDT 160bn to the private power-plant owners, he says.
Industrial loan disbursement increases in July-Sept
December 18, 2022
· Loan disbursement to industrial sector soared by 23.14% in July-September compared with the same period last year.
· According to the data, loan disbursement to industrial sector soared by BDT 246.68bn to BDT 1.31tn in July-September quarter while it was at BDT 1.07tn in the same period last year.
· Recovery of industrial credit also increased in the reported period. The banks recovered BDT 1.01tn of industrial loans in July-September period which was BDT 826.37bn in the same period last year.
· Outstanding balance of industrial loans increased by BDT 775.60bn or 12.63% to BDT 6.91tn at the end of September against the balance of BDT 6.14tn in September last year.
From: https://www.newagebd.net/article/189368/industrial-loan-disbursement-increases-in-july-sept
https://www.thedailystar.net/business/economy/news/banks-lending-industries-slows-3199581
Capital Market
Asiatic Lab's IPO at record 60% discount for general investors
December 18, 2022
· A tightening regime for the pricing of primary shares has now resulted in a record 60% discount from the reference price being offered to the general investors in the initial public offering (IPO) of Asiatic Laboratories Ltd.
· Following the bidding process under the book building method, eligible institutional investors (EIIs) have bought one-fourth of the company's new shares which were set aside for them at the maximum allowable price of BDT 50 apiece.
· And the drug maker is offering the remaining three-fourth new shares at BDT 20 apiece to the general public, as dictated by the regulator during the IPO approval.
From: https://www.tbsnews.net/economy/stocks/asiatic-labs-ipo-record-60-discount-general-investors-553966
note: this post is for research and analysis purposes only