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DSE to sit with SEC over Rupali share trade PDF Print E-mail
Wednesday, 12 March 2008

Staff Correspondent

The Dhaka Stock Exchange is going to consult with the Securities and Exchange Commission over the resumption of trading of Rupali Bank shares on the bourse, said officials.

‘We will seek suggestion from the regulatory body over the trade resumption of the bank’s shares after the latest development in its disinvestment process,’ said Salahuddin Ahmed Khan, chief executive officer of the DSE.

The government on Monday rescinded a deal with Saudi Arabian prince Bandar to sell off 93.26 per cent shares in Rupali Bank for $458 million following his non-compliance to pay the money and take over the bank. The government took the decision because of a ‘no response’ from the investor for about a year.

In October 2006, the Privatisation Commission signed a draft version of the sale and purchase agreement with the Prince. With the suggestion of the SEC, the DSE and the Chittagong Stock Exchange kept the trading of the bank’s shares suspended since November 5 last year because of volatility in the bank’s share price following confusing reports on its disinvestment process, said Salahuddin.

He said the bourse would take next course of action after consulting with the SEC, the stock market watchdog body. Uncertainties at the handover process instigated various rumours in the market about the fate of the bank’s disinvestment to the Saudi Arabian Prince, the highest bidder, and resulted in volatility in its share prices since the disinvestment negotiation started, said analysts.

The Rupali Bank share was traded at meagre Tk 500 on June 24, 2006 and jumped to Tk 2,597.50 when the negotiation process continued in the late 2006. On October 16, 2007, Rupali Bank’s share price jumped to Tk 3124.50 from Tk 1986.75 on October 9 over media report that said Saudi Arabian Prince Bandar Bin Mohammad Abdul Rahman Al Saud had planned to revive the stalled negotiations on his 458 million dollars offer for the state-owned bank. UNB adds: The Dhaka Stock Exchange maintained a bullish trend on Monday for the fifth straight day amid a relatively poorer turnover than that of the previous couple of days. Brokers said majority of the stocks registered gains on the day to drive up the DSE indices with the benchmark index getting close to its highest record of 3,093 points on November 19 last year. The day’s turnover declined to Tk 293 crore from Tk 326 crore and Tk 325 crore on the previous two days. Of the total 251 issues traded at the DSE, 145 gained, 91 incurred losses while 15 remained unchanged. The DSE general index posted a rise of 31 points or 1.00 per cent to close at 3,055 points on Monday, while the all share price index increased 23 points or 0.93 per cent to close at 2,577 points. The turnover leaders in terms of value were AB Bank, Square Pharmaceuticals, Grameen One, Trust Bank, Islami Bank, Fareast Life Insurance, Apex Footwear, ACI, Uttara Bank and Keya Cosmetics.

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