12 'Z' category cos upgraded
Trading cycles of worst performing cos reduced to T+3
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Twelve 'Z' category companies were upgraded from Wednesday after redefinition of 'Z' category stocks as the securities regulator took major steps to bring the underperforming companies back to the track.
The companies are AB Bank, Renwick Jajneswar, Bangladesh Thai Aluminum, Salvo Chemicals, Safko Spinning, Appollo Ispat Complex, Zahintex Industries, Prime Insurance, Libra Infusions, Khan Brothers PP Woven Bag Industries, Fu-Wang Ceramic and Heidelberg Cement.
The Bangladesh Securities and Exchange Commission (BSEC) issued directives in this regard on Tuesday which became effective from Wednesday.
AB Bank, Renwick Jajneswar, Prime Insurance, Libra Infusions and Heidelberg Cement were placed in 'A' category from 'Z' category.
Bangladesh Thai Aluminum, Salvo Chemicals, Safko Spinning, Applllo Ispat, Zahintex Industries, Khan Brothers PP Woven and Fu-Wang Ceramic placed in 'B' category from 'Z' category.
Share prices of the companies soared on Wednesday after their up-gradation.
The BSEC also reduced the time for trading settlements for the companies in the 'Z' category to T+3 days instead of T+9 days, also effective from Wednesday.
The stock brokers and merchant bankers are requested to abstain from providing loan facilities to purchase securities of these companies in between 1st to 30th trading day after change of categorisation, with effect from Wednesday as the BSEC directive, according to a disclosure posted on the Dhaka Stock Exchange website on Wednesday.