Islami Bank's market cap reaches Tk10,000cr for the first time
Market insiders said this growth was driven by a recent market rally following the downfall of the Hasina-led government
Islami Bank, the country's leading Shariah-based financial institution, has reached a historic milestone with its market capitalisation surpassing Tk10,000 crore for the first time since its listing on the Dhaka Stock Exchange (DSE).
Market insiders said this growth was driven by a recent market rally following the downfall of the Hasina-led government.
According to EBL Securities' daily market review, Islami Bank shares surged by 9.03% today, reaching Tk64. This sharp rise boosted the bank's market capitalisation to Tk10,303 crore, making it the seventh-largest stock on the DSE.
Keep updated, follow The Business Standard's Google news channel
Other firms with a market capitalisation of at least Tk10,000 crore include Grameenphone, BAT Bangladesh, Square Pharmaceuticals, Walton, Robi, and Beximco Limited.
Leading the list is Grameenphone, with a market cap of Tk47,179 crore.
Islami Bank is now the most valuable stock in the banking sector, surpassing BRAC Bank and Dutch-Bangla Bank.
Between 6 August and 24 September, Islami Bank shares skyrocketed by 96%. Market analysts attribute this remarkable surge to three key factors – the bank's separation from the S Alam Group, an expected investment from the International Finance Corporation (IFC), and efforts by existing shareholders to increase their stakes in the bank.
An analyst of a brokerage firm said the Bangladesh Bank Governor Ahsan H Mansur recently mentioned in a press briefing that discussions are underway with the IFC to acquire a 10-15% stake in Islami Bank, which could help revitalise the bank. If successful, this move could restore investor confidence.
Rehan Kabir, head of research at EBL Securities, noted that there is considerable hype surrounding Islami Bank shares, with investors believing that the bank's situation will improve as it has separated from S Alam Group.
However, he pointed out that the bank's financial status has not been officially disclosed. The upcoming publication of the third-quarter financial report will provide clearer insights into the bank's condition.
