The Securities and Exchange Commission could not decide on the listing of MJL Bangladesh Ltd yesterday, as the listing conditions are yet to be settled.
The SEC, Dhaka Stock Exchange, Chittagong Stock Exchange and MJL discussed the listing issue yesterday in a meeting, chaired by SEC Chairman Ziaul Haque Khondker. MJL put forward two offers in an effort to list on the bourses.
The offers are cash dividends to primary shareholders and compensation to investors if the share prices go below the offer price within the first six months of trading, an SEC official said.
In its next move, the company might offer more than 100 percent cash dividends and 15 percent to 20 percent compensation to the shareholders, the SEC official added.
“After approval from the board meeting we will submit a letter to the SEC,” said Azam J Chowdhury, managing director of MJL. “We are very optimistic about the listing,” he added.
Meanwhile, stocks returned to the red yesterday as the investors became nervous on the current market situation.
The benchmark general index of Dhaka Stock Exchange lost 32 points, or 0.53 percent, to close at 6,050 points, while the selective categories index of Chittagong Stock Exchange slumped 28 points, or 0.25 percent, to 10,913.
“Dhaka stocks started on a positive note adding more than 100 points but turned bearish as the session progressed. Investors are yet to be confident as many recommendations of probe report are still pending,” said Lankabangla Securities in its daily market analysis.
Of the total 252 issues traded on the DSE floor, 181 declined, 68 advanced and three remained unchanged. Turnover on the DSE stood at Tk 666 crore, up Tk 159.31 crore from the previous day.
Source: The daily star, 30 April, 2011