DSE announces 3pc cash dividend amid Covid-19 shock

The Board of Directors of Dhaka Stock Exchange (DSE) has decided to pay 3 percent cash dividend for its shareholders for financial year 2019-20, which was 5 percent the previous financial year.

The decision was taken at the DSE board meeting on Monday.  

A director of DSE told The Business Post that Covid-19 hit the country’s business hard last financial year and caused a sharp decline. Especially, stock market being closed for two months was the biggest shock.

In addition, Fixed Deposit Receipt (FDR) interest rates have come down which has reduced income but the cost has not decreased.

Due to these reasons, the amount of dividend declaration has decreased from previous year, he added.

In 2013, both the stock exchanges of the country, DSE and CSE (Chattogram Stock Exchange) were transformed from non-profit into a for-profit organization through demutualization. With this, dividend announcement of DSE also started.

In financial year 2014-15, the board of DSE declared a cash dividend of 10 percent and it remained the same for the next two years.

However, in 2018-19 and 2018-19 financial years, the amount of dividend came down to 5 percent.

On June 30, 2020, DSE's net assets per share (NAVPS) stood at 10.30 taka.

The Annual General Meeting (AGM) of the DSE will be held on December 24 to approve the declared dividend.

sr/zn