Pharmas rake in higher profits
Listed drug makers booked an 18 per cent growth in profit in the first nine months of the current fiscal year thanks to a decrease in marketing costs amidst the coronavirus pandemic.
The figures and associated data were compiled by Prime Finance Asset Management Company, analysing 13 pharmaceuticals companies. ACI and Orion Pharmaceuticals were excluded as they are yet to disclose their earnings.
The total profit of the listed medicine-makers rose to Tk 2,168 crore. Among them, the profits of eight rose. One of them was Beacon Pharmaceuticals, whose profit surged five times to Tk 75 crore. Operational excellence in productivity is the main reason for the higher growth in profits of drug makers, said Muhammad Zahangir Alam, chief financial officer of Square Pharmaceuticals. The company s profits rose around 11 per cent to Tk 1,163 crore.
Banking stocks lose grace for high defaulted loans
Once known to many for their attractive stocks, banks are a long way from raising adequate interest among stock market investors as confidence has been sunk by high amounts of non-performing loans and low asset value.
Among the listed 31 banks, 21 are witnessing their stocks of a face value of Tk 10 being traded at less than Tk 20.
Stocks of AB Bank, First Security Islami Bank, ICB Islamic Bank, National Bank and Standard Bank even traded below the face value. Investors are not buying banking shares for mainly two reasons. One is for the vulnerability of the sector, said Prof MA Baqui Khalily, a former director of Dhaka Stock Exchange (DSE).
High taxes to stymie sukuk market in corporate sector
Analysts say
High taxes on asset transfers act as the main obstacle to creating a vibrant Sukuk market in the corporate sector, according to market intermediaries.
Sukuk is a real asset-backed security which represents the claim on revenues generated from an underlying asset as well as the ownership of that said asset while abiding by sharia laws.
Although there have been some complexities given the tax issues, the latest initiative taken by the government and the central bank is expected to speed up the process.
The central bank will roll out a Sukuk bond next week in order to raise Tk 8,000 crore for the implementation of a government project that will ensure supply of safe water in every upazila.