ACME Pesticides returns to 'B' stocks by day's end after brief move to junk category

Highlights:
- 3 out of 4 remain in Z category
- Total Z stock reaches 98 today
- Mozaffar Hossain Spinning Mill reinstated to B today
The Dhaka Stock Exchange (DSE) downgraded ACME Pesticides, along with three other publicly listed companies, to the Z category at the start of trading today, as they failed to disburse declared dividends.
However, by the end of the session, the company disbursed the dividend, leading the bourse to reinstate it to the B category, effective from today.
ACME Pesticides, a pharmaceutical sector firm, had declared a 0.25% cash dividend for FY24.
Despite receiving shareholder approval in its annual general meeting (AGM), the company delayed the disbursement, prompting the temporary downgrade to the junk category.
The other companies that faced downgrading today were Advent Pharma, Alif Manufacturing Company, and SK Trims.
With these new additions, the number of Z category stocks rose to 98 till today but will come down to 97 at the start of today's session.
According to DSE disclosures, the companies also failed to disburse their approved dividends to shareholders within the stipulated time frame.
Stockbrokers and merchant bankers have been advised to refrain from providing loan facilities for purchasing the securities of these companies following the categorisation change.
As per listing regulations, listed companies must disburse declared or approved dividends within 30 days of approval at their AGM.
For FY24, Advent Pharmaceuticals approved a 1% cash dividend exclusively for general shareholders, while Alif Manufacturing Company announced a 1% cash dividend only for public shareholders. Meanwhile, SK Trims declared a 1.75% cash dividend at its AGM.
However, this is not the first time in the Z category for SK Trims. Previously, the company had been downgraded due to its failure to disburse an approved 3% cash dividend. Upon disbursement, the DSE reinstated it to the B category.
Mozaffar Hossain Spinning Mills reinstated
Meanwhile, on Sunday, Mozaffar Hossain Spinning Mills Ltd was downgraded to the Z category for failing to disburse dividend on time.
However, the company distributed a 3% cash dividend today, prompting the DSE to reinstate it to the B category.
Stockbrokers and merchant bankers have been advised to refrain from providing loan facilities for purchasing the company's securities during the first seven trading days following the categorisation change.