Dhaka bourse's profit tailspins to a 13-year-low

Nov 23, 2020

Business
Dhaka bourse's profit tailspins to a 13-year-low

Dhaka (Bangladesh), November 23: Dhaka Stock Exchange's profit in its 2019-20 financial year sank to its lowest in 13 years thanks to the global coronavirus pandemic that had brought trading on the bourse to a screeching halt for a large chunk of the last quarter.
The Dhaka bourse posted a profit of Tk 27 crore for the financial year that ended on June 30, down 72 per cent year-on-year, according to the year's unaudited financial statement.
Trading on the country's twin bourses was on hold from March 26 to May 30 as part of the government's efforts to flatten the curve on coronavirus.
And before the shutdown, turnover on the bourses was muted as jittery investors stayed away.
"Although trading resumed on May 31 after a 66-day closure due to the pandemic, the transaction volume was very low," an independent director of the DSE told Dhaka Tribune on condition of anonymity.
This meant the DSE incurred a huge loss in the last quarter of the financial year, he added.
The DSE's revenue in the 2019-20 financial year stood at Tk 157 crore, down 28 per cent year-on-year.
The relocation to the DSE's new premises, a 756,000 square feet compound on 1.33 acres of land in Nikunja, in November 2019 was a heavy drag on profit: Tk 20 crore for the building's maintenance were added to the total expenses, said another director requesting anonymity.
Source: Dhaka Tribune