FSIBL tops losers' chart amid poor dividend declaration

Dhaka,  Tue,  26 September 2017
Published : 21 Apr 2017, 00:26:58

FSIBL tops losers' chart amid poor dividend declaration

FE Report

First Security Islami Bank Limited (FSIBL) emerged as the top loser on the premier bourse Thursday, losing nearly 10 per cent following its year-end corporate declaration.

The board of directors of the bank has recommended 5.0 per cent cash dividend and 5.0 per cent stock dividend for the year ended on December 31, 2016, according to an announcement posted on the Dhaka Stock Exchange (DSE) Thursday.

The bank, which was listed on the Dhaka bourse in 2008, had disbursed 10 per cent cash dividend for the general shareholders, except the sponsor-directors, in the previous year.

"The bank's share price tumbled as the investors reacted negatively to its year-end dividend declaration," said a stockbroker, seeking anonymity. "It failed to fulfill the expectations of the investors."

The bank's shares were traded between Tk 12.50 and Tk 14.30 each, before closing at Tk 12.70 on the day, shedding 9.93 per cent over the previous day.

There was no price limit for the shares on the day, following the corporate declaration.

The bank reported consolidated earnings per share (EPS) of Tk 2.08, consolidated net asset value (NAV) per share of Tk 15.85 and consolidated net operating cash flow per share (NOCFPS) of Tk 12.12 for the year ended on December 31, 2016 as against Tk 1.26, Tk 14.28 and Tk 21.28 respectively for the same period of the previous year.

The bank's paid-up capital is Tk 6.78 billion and authorised capital is Tk 10 billion while the total number of securities is 678.87 million.

The sponsor-directors own 48 per cent stake in the bank, while institutional investors own 15.71 per cent, foreign investors 4.59 per cent and the general shareholders 31.69 per cent as on March 31, 2017, according to the DSE data.

Other top losers of the day were Standard Insurance, International Leasing and Financial Services, Prime Insurance, Malek Spinning Mills, Al-Arafah Islami Bank, Peninsula Chittagong, Regent Textile Mills, Phoenix Insurance and Hakkani Pulp and Paper.

Standard Insurance was the day's second highest loser. The insurer's share price fell 9.04 per cent to close at Tk 17.10 each on the Dhaka bourse.

International Leasing and Financial Services was the third. The financial institution's share price shed 9.03 per cent to close at Tk 13.10 each.

Prime Insurance emerged as the fourth loser as the company's share price fell 8.33 per cent to close at Tk 16.50 each.

Malek Spinning was the fifth biggest loser on the Dhaka bourse. The company's share price plunged 6.75 per cent to close at Tk 20.70 each.

Al-Arafah Islami Bank's share price fell 6.52 per cent to close at Tk 17.20 each, which was the sixth highest loser on the premier bourse.

Share price of the Peninsula Chittagong slumped 5.35 per cent to close at Tk 26.50 each and emerged as the day's seventh highest loser.

Regent Textile Mills was the day's eighth highest loser after witnessing steep gain in the past few days. The company's share price fell 4.94 per cent to close at Tk 32.70 each.

Share prices of Phoenix Insurance shed 4.74 per cent to close at Tk 28.10 each on the major bourse.

Hakkani Pulp and Paper was also included in the list of top 10 losers. The paper and printing sector company's share price dropped 4.70 per cent to close at Tk 54.70 each.

Editor : A.H.M Moazzem Hossain
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