Business Desk :
AB Bank shares plunged to a two-year low at the close on Thursday as investors reacted sharply to its no-dividend announcement for 2017.
The cash-strapped bank is not paying any dividend for the year to Dec 31, 2017, the country’s first private bank said in a filing to the Dhaka Stock Exchange.
In the wake of the deceleration, the stock saw a free-fall in morning trade, plunging as much as 29.7 percent to Tk 10.9 per share-lowest since Jun 29, 2006 when it was Tk 10.65, report bdnews24.com.
It, however, recovered some value before closing 21.29 percent down at Tk 12.2, the lowest since Apr 27, 2016.
Investors dumped their holdings as soon as the news hit the stock market, according to traders.
There was no price limit on the trading of the shares of the company following its corporate declaration.
Incorporated in 1981, the bank has reported that its earnings per share or EPS almost closed to negative of Tk 0.05 and net operating cash flow per share suffered a loss of Tk 12.22 for 2017.
According to its dividend history, the bank has been giving only stock dividends since 2002. Over the four years to 2016, it continued to pay out 12.5 percent stock dividends.
The company has been downgraded to Z category from A category, effective from May 6 as the company has recommended no dividends. The Z-category company is considered a junk stock.
The bank has recently been beset with loan scams and a provision shortfall.
The Anti-Corruption Commission filed a case on Jun 28 last year in which 12 high-ups of the bank, including its managing director, were named for embezzling nearly Tk 4 billion between 2011 and 2015.
AB Bank shares plunged to a two-year low at the close on Thursday as investors reacted sharply to its no-dividend announcement for 2017.
The cash-strapped bank is not paying any dividend for the year to Dec 31, 2017, the country’s first private bank said in a filing to the Dhaka Stock Exchange.
In the wake of the deceleration, the stock saw a free-fall in morning trade, plunging as much as 29.7 percent to Tk 10.9 per share-lowest since Jun 29, 2006 when it was Tk 10.65, report bdnews24.com.
It, however, recovered some value before closing 21.29 percent down at Tk 12.2, the lowest since Apr 27, 2016.
Investors dumped their holdings as soon as the news hit the stock market, according to traders.
There was no price limit on the trading of the shares of the company following its corporate declaration.
Incorporated in 1981, the bank has reported that its earnings per share or EPS almost closed to negative of Tk 0.05 and net operating cash flow per share suffered a loss of Tk 12.22 for 2017.
According to its dividend history, the bank has been giving only stock dividends since 2002. Over the four years to 2016, it continued to pay out 12.5 percent stock dividends.
The company has been downgraded to Z category from A category, effective from May 6 as the company has recommended no dividends. The Z-category company is considered a junk stock.
The bank has recently been beset with loan scams and a provision shortfall.
The Anti-Corruption Commission filed a case on Jun 28 last year in which 12 high-ups of the bank, including its managing director, were named for embezzling nearly Tk 4 billion between 2011 and 2015.
