ACI profit slump makes investors jittery | The Daily Star
12:00 AM, November 15, 2017 / LAST MODIFIED: 12:00 AM, November 15, 2017

ACI profit slump makes investors jittery

ACI was the day's biggest loser yesterday after the local business giant reported a 36.67 percent slump in profits for the July-September quarter.

On Monday, ACI Ltd reported net profit of Tk 11.35 crore for the first quarter of 2017-18. The company's trading on the Dhaka Stock Exchange remained suspended on the day.

Upon resumption of trading yesterday the stock was subjected to huge selling pressure, with its value tumbling to as low as Tk 490.2 from its last closing price of Tk 582.9.

It ended the day at Tk 499.6, down 14.29 percent from the previous session, making it the day's biggest loser.

The frenetic trading sent the stock to the top 5 spot in the day's turnover chart: some 779,858 shares worth Tk 38.33 crore changed hands.

Asked about the significant fall in net profits, M Anis Ud Dowla, chairman of ACI, blamed it on slow growth in the company's agriculture segment.

“There are lots of opportunities -- we will do good business in the coming days,” he said, banking on the new investments it has undertaken in different fields.

Earlier on October 24, ACI announced investment of Tk 24.7 crore in its subsidiary ACI Foods. It will also invest Tk 4 crore in its joint venture with British beverage manufacturer Tetley.

ACI declared 40 percent cash and 10 percent stock dividends for the financial year that ended on June 30, 2017.

Daily market

Stocks ended in the green yesterday due to active participation of investors amid earnings declaration from companies whose financial year ended in June.

Subsequently, turnover recorded was the highest in the last one month: Tk 1,176 crore. The DSEX, the benchmark index of the DSE, closed the day at 6,252, up 35.53 points from the previous day.

Of the traded stocks, 128 advanced, 166 declined and 35 remained unchanged.

Banking sector led the turnover table, accounting for 41.98 percent of the day's turnover.

City Bank was the day's most traded stock, with its turnover of Tk 56 crore, followed by AB Bank, Grameenphone and Dhaka Bank.

Among the major sectors, telecom and pharmaceuticals posted gain of 1.69 percent and 1.32 percent respectively.

United Insurance was the day's biggest gainer, with its stock adding 9.64 percent in value during the course of the trading session to close at Tk 30.7.

IPDC Finance, Prime Finance First Mutual Fund, Dhaka Insurance and Mutual Trust Bank rounded off the top five spots in the gainers' chart.

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