Textile sector dominates turnover

Dhaka,  Thu,  24 August 2017
Published : 18 Jul 2017, 00:28:49

Textile sector dominates turnover

Mohammad Mufazzal

The textile sector has kept its dominance in terms of number of securities and contribution in daily turnover value on Dhaka Stock Exchange (DSE).

The sector's contribution in turnover value became more visible following investors' increased participation in share trading after the government proposed to reduce corporate tax on textile sector.

After the announcement of national budget for the fiscal year 2017-18, the textile sector grabbed the highest amount of daily turnover in most of the trading sessions observed on the premier bourse DSE.

A significant number of companies also went public from the textile sector during January, 2014 to March, 2017.

As a result, the textile sector now comprises the highest number of listed securities. Presently, the sector comprises 48 listed securities, while the insurance sector comprises 47 listed securities.

According to DSE information, the textile sector topped the daily turnover chart grabbing highest amount in many sessions following investors' increased participation. Previously, the engineering and banking sector dominated the turnover chart.   

The DSE featured daily turnover of above Tk 10 billion from July 3 to July 17 mainly riding on the textile sector.

On July 2, the textile sector topped the turnover chart capturing 17 per cent of the market turnover.

The sector captured 17 per cent of market turnover on July 3, 23 per cent on July 4, 17.80 per cent on July 5, 16.40 per cent on July 6, 22 per cent on July 9, 17 per cent on July 10, 22 per cent on July 11, 22 per cent on July 12, 18 per cent on July 13, 18.90 per cent on July 16 and 15.10 per cent on July 17.

Asked, Md.Moniruzzaman, managing director of IDLC Investments, said the announcement of reducing corporate tax may be a reason behind investors' increased participation in textile sector,  

"Secondly, the companies having low paid-up capital also observes rally in the market. It may be another reason for the dominance of textile sector in turnover chart," Moniruzzaman said.

A total of 42 went public since January, 2014 to March, 2017 and of these companies 18 came from textile sector.

Of five IPOs, approved in 2017, three are from textile sector. The companies are: Nurani Dyeing & Sweater, Shepherd Industries and Pacific Denims.

The regulator approved six IPOs in 2016. Of six companies, three came from textile sector. The companies are Yeakin Polymer, Evince Textile, Dragon Sweater & Spinning.

Of 14 IPOs, approved in 2015, six came from textile sector. The companies are C & A Textiles, Shasha Denims, Zaheen Spinning, Tosrifa Industries, Simtex Industries and Regent Textile Mills.

Of 17 IPOs, approved in 2014, six companies also came from textile sector. The are Mozaffar Hossain Spinning Mills, Matin Spinning Mills, Hwa Well Textiles (BD), Tung Hai Knitting & Dyeing, Far East Knitting & Dyeing Industries and Hamid Fabrics.  

Mohammad Saifur Rahman, an executive director of the securities regulator, said a significant number of IPO proposals come from the textile sector as the sector is largest one in terms of number of companies.

"The regulator does not consider the sector while approving IPO proposals. The sector-wise IPOs’ assessment vary from time to time," Rahman said.

Editor : A.H.M Moazzem Hossain
Published by the Editor for International Publications Limited from Tropicana Tower (4th floor), 45, Topkhana Road, GPO Box : 2526 Dhaka- 1000 and printed by him from City Publishing House Ltd., 1 RK Mission Road, Dhaka-1000.
Telephone : PABX : 9553550 (Hunting), 9513814, 7172017 and 7172012 Fax : 880-2-9567049
Email : editor@thefinancialexpress-bd.com, fexpress68@gmail.com
Copyright © 2017. All rights reserved
Powered by : orangebdlogo