Poor performance of companies

Seven go to 'Z' category within two to seven years of listing

Mohammad Mufazzal | Published: August 12, 2018 10:43:45 | Updated: August 13, 2018 11:42:17


FE file photo used for representation

Some seven companies have been shifted to 'Z' category within two to seven years of listing due to poor performance.

The prices of the stocks, barring one, presently remain below the face value of Tk 10 each while few of the companies incurring losses.

The companies having prices below the face value are United Airways (BD), C & A Textiles, Fareast Finance and Investment, Tung Hai Knitting & Dyeing, Emerald Oil Industries and Familytex (BD).

The companies were listed with the stock exchanges during 2010-15.

Some of those companies issued only stock dividends after listing with the stock exchanges.

Of the companies, United Airways (BD), listed in 2010, is presently incurring losses. The company issued dividend last in 2015.

The company reported a loss of Tk 1.68 per share for the year ended on June 30, 2017 against a loss of Tk 1.66 per share for the previous year.

At the end of February this year, the securities regulator imposed a penalty of Tk 1.0 million on each of the seven sponsor-directors for breaching the securities rules regarding trading of shares during the prohibitory period.

The company's share price closed at Tk 3.60 each on Thursday on the premier bourse.

Fareast Finance & Investment, listed in 2013, issued 5.0 per cent cash dividend in 2016.

It reported a loss of Tk 5.72 per share for the year ended on December 31, 2017 as against the earnings of Tk 0.63 per share for the same period of previous year. It also reported a loss of Tk 1.39 per share for April-June, 2018.

The company was shifted to 'Z' category from 'B' category for not issuing any dividend. The share price closed at Tk 6.30 each on Thursday.

The share trading of Emerald Oil Industries, listed in 2014, closed at Tk 9.30 each on Thursday. The company issued dividend last in 2016. The company was shifted to 'Z' category on January 1, 2018 as it failed to hold AGM.

Tung Hai Knitting & Dyeing, listed in 2014, shifted to 'Z' category on January 1, 2018 as it failed to hold AGM.

The company issued 10 per cent stock dividend in 2014 and 10 per cent stock dividend in 2016.

The company's share price closed at Tk 5.80 each on Thursday on the DSE.

Khulna Printing & Packaging Limited (KPPL), listed in 2014, remains out of production at presently.

The company's share price closed at Tk 9.10 each on June 20, 2018. Later, the price jumped to Tk 21.10 each on July 26 last riding on rumour regarding re-opening of operation.

Meanwhile on July 23 last, the company said in a disclosure that its board of directors decided to re-open the factory and start its production, commercial operation, etc. riding on necessary supports from the regulatory authorities.

On Thursday, the company's share trading closed at Tk 18.40 each on the DSE.

The market of price C & A Textiles is also below the face value of Tk 10 each. The price closed at Tk 5.0 each on Thursday on the DSE. After listing in 2015, the company only issued stock dividend.

The company's sponsor-directors hold 22.14 per cent shares despite they are required to hold at least 30 per cent shares as per the securities rules.

The share price of Generation Next Fashions, an 'A' category company, is also below the face value. The company's share price closed at Tk 8.20 each on Thursday.

mufazzal.fe@gmail.com

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