The New Nation - Internet Edition

Mashiur Rahaman

Disappointed shareholders of the United Commercial Bank Limited (UCBL) has sold out 50040 shares within a single trading session yesterday. This plunged the Dhaka Stock Exchange (DSE) index into red.

Trading of UCBL shares started at Tk 4453.75 per share at opening, which closed at Tk 3989 per share rate. This selling pressure have also impure trading of other banking shares and forced DSE to close its trading day with 24.786 points loss in general index. Talking to The New Nation, shareholders expressed their disappointment over UCBL decision on dividend issue. According to them, such decisions have deprived a large proportion of shareholders who expected to receive a healthy profit return at the year-end.

According to UCBL notification, issued on December 26, 2007, the Annual General Meetings (AGMs) of the bank for the years 2003, 2004 and 2005 respectively would be held on January 10, 2008. The Board, after a meeting on December 26, 2007 earlier declared 9 (nine) Bonus shares for every 10 (ten) ordinary shares out of the profit accumulated for the years 2002, 2003 and 2004 kept as retained earnings as at December 31, 2004.

The Board also announced the record date for the years 2003, 2004 and 2005 would remain September 25, 2005 as declared earlier.

Moreover, the UCBL Board Meeting through another notification, also have informed that the board has decided to hold 23rd AGM for the year 2006 which will be held on January 31, 2008 and recommended 5 (five) Bonus shares for every 10 (ten) ordinary shares out of the profit for the year 2005. According to the notification, record date for 23rd AGM of the bank will be January 16, 2008.

This is unacceptable, said a disappointed shareholder of the bank. "We hold this share for quite a long time despite it's per share value reached over Tk 6000. We expected to receive profitable return as dividend for general shareholders as the IFIC recently announced," he expressed his depression. Despite the the fact that the 24th AGMs of UCBL for the year 2007 is yet to be announced, share holders selling out their UCBL shares out of disappointment at over Tk 2000 per share loss.

"These shareholders were mostly the short term investors who have purchased UCBL share at such a higher rate. Now they are withdrawing their capital from with the desire to purchase petroleum shares as they are gradually climbing upward," said a market expert from the LankaBangla Securities.

According to him, the two leading government owned petroleum companies, Meghna Oil and Jamuna Oil, are expected to enter capital business by the second week of January 2008.

"This news pulling investors attentions towards other existing oil shares in the market. Those who have lost their capital in UCBL, witnessing the oil sector as the most potential sector to recover their losses," explained the market expert to The New Nation.

Other than chaos in UCBL shares, trading in most other shares remained stable and the DSE general index closed at 3003.88 points level, he added informed.

On the day's trading, total number of trading share was 40 lakes, worth Tk 123.474 crore. Total market capitalization in DSE reached at Tk 73908.78 crore as recorded.

Price of total 89 shares was advanced on the day where 118 others declined. Price of 5 other shares remained unchanged.