Jute sector comprising small cap companies posted the highest return in 2018 though major sectors witnessed sharp correction during the year.
In 2018, share trading was executed on 242 working days and jute sector witnessed a return of 141.50 per cent in market cap following 'unusual' price hike of issues.
Of the major sectors, the market cap of banking sector declined 22.90 per cent, cement 26.40 per cent, financial institutions 23.90 per cent, telecommunication 21.70 per cent and services & real estate 23 per cent, according to market review of EBL Securities.
The jute sector comprises of only three companies such as Jute Spinners, Northern Jute Manufacturing Company and Sonali Aansh Industries.
The companies several times exhibited 'unusual' price of shares despite two of them recommended 'No' dividend and incurred losses for the year ended on June 30, 2018.
On January 1, 2018 the share price of Sonali Aansh Industries closed at Tk 214.50 each.
At the end of the year, the company's share price closed at Tk 686.40 each, 220 per cent higher than the price observed on January 1, 2018.
The company's board of directors recommended 10 per cent cash dividend for the year ended on June 30, 2018.
It reported EPS of Tk. 1.71 for the year ended on June 30, 2018 as against Tk. 1.65 for the same period of the previous year.
In response to a DSE query dated November 13, 2018, Sonali Aansh Industries informed that there was no undisclosed price sensitive information for unusual price hike and increase in volume of shares.
In 2018, there was volatility in share price movement of Jute Spinners on the opening session of the year. The company's share price closed at Tk 104.30 each.
Later, the company's share price stood at Tk 128.10 each on December 27, 2018.
The board of directors of Jute Spinners recommended 'No' dividend for the year ended on June 30, 2018.
The company reported a loss of Tk 60.53 per share for the year ended on June 30, 2018 as against the loss of Tk 49.39 per share for same period of the previous year.
Its share price rose abnormally amid 'No' dividend and loss reported in quarterly statement for July-September, 2018.
Later, in response to a DSE query dated December 10, 2018, Jute Spinners informed that there was no undisclosed price sensitive information for unusual price hike of shares.
On the closing session of 2018, the share price of Northern Jute Manufacturing Company closed at Tk 1239.10 each. The company's share price rose 134 per cent or Tk 709.50 in 2018.
The company's board of directors recommended no dividend for the year ended on June 30, 2018.
It also reported a loss of 17.15 per share for the year ended on June 30, 2018 as against the EPS of Tk. 4.27 (restated) for the same period of the previous year.
Following a DSE query made on December 04, 2018, the company informed that there was no undisclosed price sensitive information for recent unusual price hike of shares.
mufazzal.fe@gmail.com