News Title : Telecom sector suffers a big jolt

News Date : 2015-10-01

-FE Report
Telecommunication sector led the top market cap losers on Wednesday with 1.80 per cent loss as two companies of the sector witnessed a significant price fall. The telecommunication sector included only two companies -the largest market capitalisation leader GrameenPhone (GP) and the state-owned Bangladesh Submarine Cable Company Limited (BSCCL). The telecom sector accounted for 5.7 per cent of the day's total turnover on the Dhaka Stock Exchange (DSE) with Tk 4.95 billion traded. The sector accounted for 14.50 per cent of the DSE's total market capitalistaion of Tk 3,355.50 billion as on Wednesday. The lone listed mobile phone company, GP's share closed at Tk 285.1 on Wednesday, losing 1.93 per cent over the previous session. Meanwhile, GP's share price continued to decline since the merger news of Robi and Airtel published early in September. Within the last one month, GP's share price fell 10.38 per cent or Tk 33 each. Robi and Airtel merger process is expected to be completed by January next year, according to media reports. Robi will have a 75 per cent stake in the merged entity and Airtel 25 per cent. After completion of merger of these two operators, the new entity would become the country's second largest mobile operator after Grameenphone. Market insiders said, after the merger, the other operators will come under tremendous pressure from competitors, which may affect their profitability. However, the GP dominated the day's turnover chart on DSE with shares worth Tk 238 million changing hands on Wednesday. GP also reported profit after tax from Jan'15-June'15 Tk 10,477.01 million with earning per share (EPS) of Tk 7.76 as against Tk 10,577.07 million and Tk 7.83 respectively for the same period of the previous year. The largest market capitalisation company's paid-up capital is Tk 13,503 million and authorised capital is Tk 40,000 million while the total number of securities is 1,350,300,022. GP, listed on the Dhaka bourse in 2009, has already declared 80 per cent interim cash dividend for the year ending in 2015. In 2014, the company disbursed a total of 160 per cent cash dividend (95 per cent interim and 65 per cent final). Of the total share- sponsors/directors own 90 per cent, institutions 4.13 per cent, foreign investors 3.06 per cent while public own only 2.81 per cent, according to DSE website. On the other hand, each share of BSCCL closed at Tk 113.5 on Wednesday, losing 7.04 per cent over the previous session. BSCCL, which provides various telecommunications services through the Submarine Cable network, was listed on the DSE in 2012. The BSCCL recommended 10 per cent stock dividend for the year ended on June 30, 2015. The final approval will come during the AGM scheduled to be held on 18 October. In 2014, the company disbursed 10 per cent cash dividend. The company has also reported EPS (without fair valuation surplus) of Tk 0.86, NAV per share of Tk 26.91 and NOCFPS of Tk 0.22 for the year ended on June 30, 2015. Of the total share- government own 73.84 per cent, institutions 9.81 per cnet, foreign investors 0.55 per cent while public own 15.8 per cent, according to DSE website. The company's paid-up capital is Tk 1,499 million and authorised capital is Tk 10,000 million while the total number of securities is 149,914,100.

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