The total trading of state-owned Investment Corporation of Bangladesh (ICB) in the secondary market of the stock market fell by 26.39% in the last fiscal year,compared to the previous fiscal year.
According to the latest annual report, during FY18, ICB's total trade, along with its subsidiary companies in both the bourses, was Tk15,478.83 crore—which is 26.39% lower than the total trade value of Tk21,028.46 croreof the previous year.
Yet, this year ICB’s overall net profit after tax deduction stood at Tk377.14crore—which was Tk368.17 crore in FY17—showing an increase of 2.44%.
Last year, the total turnover of ICB in the secondary market was Tk5,608.11 crore—31.65% lower than the previous fiscal year’s turnover of Tk8,205.02 crore. At the same time, capital gains of ICB’s own portfolio was Tk742.58 crore—which is 4.31% less than the capital gain of Tk776.05 crore in FY17.
The annual report also revealed that Tk2,695.25crore was invested in ICB’s own portfolio in FY18. Out of this, Tk2,640.25 crore was invested in securities of various listed companies through the secondary market—which is 44.44% less than last year’s Tk4,752.02 crore.
The market price of marketable securities of ICB’s investment portfolio stood at Tk10,070.85crore, against the cost price of Tk10,569.63 crore as of June 30 this year.
Speaking to the Dhaka Tribune, a top ICB official saidthat fundamental analyses, includingprice-to-earnings ratio, dividend yield, closing price, earnings per share (EPS) and other proposals,are presented by theirportfolio management committee.
The official added that the committee decides on purchase or sale of securities considering different aspects of the proposal. Investment strategy is formulated after considering the domestic financial market, world economic situation, and the overall trend in the stock market.
Authorities' concern
Expressing his concerns, ICB chairman Prof Dr MojibUddin Ahmed said: “Our major commercial activities are in the stock market. Income from this decreased a little due to the downwards trend that prevailed in the stock market during the second half of FY18.”
Talking about the annual report, Managing Director of ICB KaziSanaulHoq, said: “The position of the capital market in the first six months of FY18 was satisfactory, but the capital market has had to face certain unexpected circumstances in the second half of the year."
Major sectors of income
The total interest income during FY18 stood at Tk338.50 crore—which was Tk203.42 crore in FY17—representing an increase of Tk135.08 crore (66.40%).
Dividend income in FY18 was Tk386.83 crore, up by Tk48.08 crore (14.19%), compared to Tk338.75 crore in the previous fiscal year.
The year under review capital gain was Tk742.58 crore, down by Tk33.47 crore (4.31%), compared to that of Tk776.05 crore in the previous year.
Income from fees and commission increased by Tk1.77 crore (2.69%), compared to FY17.
