ICB investments in stock market up by Tk 1,463 crore

ncreased by Tk 1462 crore 85 lakh. The ICB invested in listed securities in 19 sectors of the stock market. Most of its investment went to the energy and power sector. It was 18.09 percent of the total investments or Tk 883 crore. Its highest investment in a single company was Tk 237 crore invested in the Grameenphone in the telecom sector. It has been gathered from the annual financial statement published for the fiscal year 2013-14.

The ICB’s consolidated investments in listed securities in the fiscal year ended on June 30, 2014 were to the tune of Tk 4,882 crore 98 lakh. Of the amount, Tk 5 crore 90 lakh was invested in bonds and Tk 39,600 in debentures. In the previous fiscal year 2013 the ICB invested Tk 3,420 crore 13 lakh.

As of June 30, 2014 the ICB investments in listed and non-listed securities stood at Tk 5,396 crore 36 lakh against Tk 3,813 crore 15 lakh of the previous fiscal.

Till December 31, 2014 in the current fiscal year the ICB investments in listed and non-listed securities increased to Tk 6,375 crore 15 lakh.

Of the 19 sectors, the company invested the highest amount in the energy sector followed by the chemical and pharmaceutical sector that saw an investment of Tk 791 crore 75 lakh. The banking sector bagged an investment of Tk 592 crore 66 lakh and food and others Tk 580 crore. The lowest investment had been made in the paper and printing and jute sectors—Tk 16 lakh 94 thousand was invested in the paper and printing sector and Tk 66 lakh 60 thousand in the jute sector.

The ICB invested Tk 209 crore 55 lakh in securities not listed with the stock exchanges. The investment had been made through placement shares. It invested Tk 12 crore 76 lakh in the Energypac shares worth Tk 44 each and Tk 30 crore in the Acme Laboratories shares worth Tk 30 each. It also invested in Jago Corporation, Karim Pipe, AB Biscuit, Aroma Tea, Dhaka Vegetable, Meghna Vegetable, Energypac Power, Mimco Jute Mills, Allied Pharma, Pharmaco International, Progressive Plastic, Milon Tanneries, Desh Denims, Paragon Leather and some other companies.

Talking to thereport24.com about this, economist AB Mirza Azizul Islam said, “The increase in ICB’s investments is positive for the stock market. The organisation has invested to stabilise the market. As a state-owned organisation the ICB has the moral obligation.”

In the FY 2013-14 the ICB made a capital gain of Tk 472 crore 10 lakh by trading in shares. It also earned Tk 190 crore 20 lakh in the form of dividends from different companies. It also earned from subsidiaries and debentures. In the corresponding period of the previous fiscal it earned Tk 374 crore 68 lakh in capital gain and Tk 81 crore 18 lakh in dividends from different companies.

The Corporation’s margin loan was Tk 1,295 crore 41 lakh against the previous fiscal’s Tk 1,228 crore 36 lakh.

Its paid-up capital is Tk 421 crore 87 lakh 50 thousand. In the FY 2013-14 the ICB posted Tk 85.47 as earnings per share (EPS) against the face value of Tk 100 each against Tk 77.95 in the previous fiscal.

In this connection Managing Director of the asset management company AIMS of Bangladesh, Yawar Sayeed, told thereport24.com, “I think the increase in ICB’s investments will yield positive results for both the stock market and the investors.”

ICB Managing Director Md Fayequzzaman told thereport24.com, “Whenever the stock prices have slid, we have bought shares. Many follow us. Whenever any problem arises in the market, the ICB is there beside the investors. The ICB was beside those who were affected in 2011 also. If the investors are blocked, the market loses its steam. The ICB tries to add impetus to the market.”

Following are the market prices and the amounts of investment made by the ICB head office as of June 30, 2014:

Banks: The ICB invested Tk 648 crore 91 lakh in 30 banks. The market prices of the shares stood at Tk 580 crore 48 lakh. Based on the market prices its unrealised losses were to the tune of Tk 68 crore 43 lakh.

Cement: The ICB made a profit of Tk 170 crore 24 lakh from the cement sector. In seven companies of the cement sector it invested Tk 274 crore 61 lakh. At the end of the fiscal year the market prices of the shares rose to Tk 444 crore 85 lakh. Lafarge Surma saw the highest investment per share.

Ceramics: The investment in the sector was Tk 149 crore 76 lakh. The market prices of the shares at the fiscal year end declined to Tk 97 crore 47 lakh. The unrealised losses stood at Tk 52 crore 29 lakh. The highest investment in the sector went to RAK Ceramics—Tk 84 crore 45 lakh.

Engineering: In 26 companies in the engineering sector the ICB invested Tk 265 crore 75 lakh. The market prices of the shares fell to Tk 263 crore 38 lakh. So, the unrealised losses stood at Tk 2 crore 37 lakh. The ICB made the sector’s highest investment in BSRM shares—Tk 113 crore 16 lakh.

Food and others: The ICB made an unrealised profit of Tk 404 crore 8 lakh. In 22 companies in the sector the ICB invested Tk 176 crore 2 lakh. At the end the market prices of shares rose to Tk 580 crore 28 lakh. The sector’s highest investment went to the BATBC.

Power and energy: Though the highest amount was invested in the sector, the unrealised losses stood at Tk 19 crore 9 lakh. In 14 companies the total investments stood at Tk 887 crore 53 lakh. At the end the market prices of the shares stood at Tk 867 crore 63 lakh. The sector’s highest investment was made in the Titas Gas—Tk 244 crore 69 lakh.

Information technology: In six companies in the sector the total investments were to the tune of Tk 23 crore 8 lakh. The market prices of shares fell to Tk 22 crore 14 lakh. The unrealised losses stood at Tk 1 crore 66 lakh. The highest investment of Tk 18 crore 60 lakh was made in the Agni System at the rate of Tk 21.56 per share.

Insurance: The sector’s highest investment of Tk 28 crore 73 lakh was made in the Sunlife Insurance at the rate of Tk 61.78 per share. The total investment in 45 companies of the sector stood at Tk 176 crore 72 lakh. The market prices of the shares declined to Tk 154 crore 86 lakh. The unrealised losses stood at Tk 21 crore 86 lakh.

Mutual funds: In this sector the ICB invested Tk 36 crore 86 lakh in 19 companies. The market prices of the shares declined to Tk 21 crore 58 lakh. The unrealised losses stood at Tk 15 crore 28 lakh.

Jute: In the Jute Spinners in this sector the ICB invested Tk 15 lakh 50 thousand. The market prices of the shares rose to Tk 64 lakh 74 thousand.

Miscellany: In the sector the highest investment went to the Beximco Ltd. The ICB invested Tk 142 crore 73 lakh at the rate of Tk 95.15 per share. In 12 companies in the sector the total investments stood at Tk 167 crore 67 lakh. The market prices of the shares declined to Tk 80 crore 42 lakh. So, the unrealised losses stood at Tk 87 crore 25 lakh.

Financial sector: The unrealised losses in the sector stood at Tk 15 crore 31 lakh. In 21 companies in the sector the total investment was Tk 161 crore 5 lakh. The market prices fell to Tk 146 crore 19 lakh. The highest investment of Tk 53 crore 7 lakh was made in the Uttara Finance at the rate of Tk 67.74 per share.

Paper and printing: In this sector the investment in two companies was Tk 30 lakh. The market prices of shares came down to Tk 17 lakh. The unrealised losses stood at Tk 13 lakh. Tk 2 lakh was invested in Haqqani Paper and Tk 28 lakh in Mac Paper.

Pharmaceuticals and chemicals: The unrealised profit of the ICB was Tk 241 crore 90 lakh. The ICB invested Tk 542 crore 2 lakh in 27 companies in the sector. Their market prices increased to Tk 784 crore 10 lakh.

Services and real estate: The ICB invested Tk 10 crore in three companies in this sector. The market prices of the shares rose to Tk 11 crore 97 lakh. Thus the unrealised profit of the ICB was Tk 1 crore 97 lakh.

Tannery: The investment in five companies in the sector was Tk 101 crore 7 lakh. The shares’ market prices rose to Tk 123 crore 89 lakh. The unrealised profit stood at Tk 22 crore 82 lakh.

Telecommunications: The ICB invested Tk 237 crore 31 lakh in the GrameenPhone, the highest in a single company. Its investment in the Bangladesh Submarine Cable shares was Tk 3 crore 43 lakh. In these two companies the investment amounted to Tk 240 crore 74 lakh. Their market prices rose at the fiscal-end to Tk 361 crore 44 lakh. Thus the unrealised profit stood at Tk 120 crore 70 lakh.

Fabrics: The unrealised losses stood at Tk 1 crore 74 lakh. The ICB invested Tk 194 crore 87 lakh in 41 companies in the sector.

Tourism and hospitality: The unrealised losses from the sector stood at Tk 19 crore 27 lakh. The ICB invested Tk 57 crore in the Unique Hotel and Tk 28 crore in the United Airways.