Confusion over category change of Lafarge on DSE

Confusion has arisen whether Lafarge Surma Cement will come out of Z category on the Dhaka bourse after the multinational company declared interim dividend.
The Z category is an area for companies that do not hold annual general meetings regularly and declare dividends.
The cement manufacturer announced 5 percent interim cash dividend a month ago and completed the disbursement of the dividend on Monday. It has also been holding AGMs regularly. As per rules, companies that hold AGMs regularly but declare dividend below 10 percent will be placed in the B category.
But the Dhaka Stock Exchange is yet to change its category as the rules do not say anything about interim dividend.
“Our regulatory affairs department is examining the rules,” said Swapan Kumar Bala, managing director of the DSE.
He, however, said Lafarge is yet to comply with settlement regulations of the stock exchange to enter B category.
If Lafarge is transferred to B-category, its trading cycle or settlement period will be changed to T+2, from existing T+9.
The T+2 categorisation means the buyer must make payments and the seller must transfer ownership of the stock to the buyer within two days after the trade was made.
The changed trading settlement period will enhance the liquidity flow to the market and increase the supply of Lafarge shares.
Lafarge Surma Cement declared its maiden dividend of Tk 0.50 per share on June 10 after a decade of being listed as the lone green field company on the stockmarket in 2003.
The multinational company, which started commercial operations in 2007, announced the dividend after it covered up accumulated losses at the end of May.
Lafarge's consolidated net profit in the first five months this year was Tk 114.41 crore, enough to offset the accumulated loss of Tk 31.62 crore after the first quarter to March this year. Earnings-per share of the manufacturer of Supercrete brand cement stood at Tk 0.99 at the end of May with net asset value per share at Tk 10.51.