BATBC, IDLC and IPDC stocks drop despite positive disclosures

Despite making positive disclosures, stocks of some major companies dropped yesterday. DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell 27 points, or 0.53 per cent, to 5,475.98 yesterday.

British American Tobacco Bangladesh (BATBC) announced yesterday that its board of directors approved an investment decision amounting to Tk 192.5 crore to increase the manufacturing capacity of their Savar factory.

The decision came to enhance the upcoming export opportunities of cigarettes from Bangladesh. The investment would be funded from internal financing.

Despite the announcement, stocks of the BATBC dropped 0.66 per cent to Tk 1,592.

It was the same fate for the IPDC and IDLC although they logged higher profits amid the pandemic.

IDLC Finance declared 35 per cent cash dividend as its profits rose 49 per cent to Tk 254 crore for the year ending on December 31 of 2020 compared to the previous year.

IPDC Finance recommended 12 per cent cash dividend while it's profits rose 25 per cent to Tk 70.5 crore last year. However, the IDLC and IPDC Finance stocks fell 0.43 per cent and 0.75 per cent respectively.

The overall market situation was dull because investors are confined to within some stocks, a merchant banker said.

So when these stocks fall, then investors cannot trade without incurring losses, he said, adding that three or four companies were on top of the demand list among investors in the recent few months.

"Investors need to be patient and keep well performing companies in hand," he said.

Turnover, an important indicator of the stock market, dropped 19.6 per cent, to Tk 694 crore yesterday. Stocks of Beximco topped trade with  Tk 213 crore, accounting for over 30 per cent of total turnover.

In the DSE, 76 stocks rose, 144 declined and 126 remained unchanged.

Bangladesh National Insurance Company topped the gainers' list yesterday that rose 9.93 per cent followed by Far East Knitting, Jute Spinners, Asia Insurance and Generation Next.

Beximco topped the turnover list  followed by Robi Axiata, BATBC, Beximco Pharmaceuticals and LankaBangla Finance.

Bangladesh General Insurance Company shed the most, dropping 6.09 per cent followed by Taufika Foods and Agro Industries, Prime Life Insurance, Reliance Insurance and Rupali Life Insurance.

The port city bourse also dropped yesterday. CASPI, the general index of the Chittagong Stock Exchange (CSE), fell 120 points, or 0.75 per cent, to 15,821 yesterday.

Among 228 traded stocks, 56 rose, 111 dropped and 61 remained same.