67M shares traded last year

RESEL: A total of about 67.15M shares worth Nu1.93B were traded last year compared to 8.4M shares in the previous year.

However, after considering the conversion of face value from Nu 100 to Nu 10 a share, the overall trading has increased by 97.78 million shares but the value of trading has decreased by Nu 155.27M.

In August last year, the face value of shares were slashed by ten folds, meaning that individuals owning 100 shares of any company listed with the Royal Security Exchange of Bhutan Ltd (RSEBL) saw their number of shares increase to 1,000. This was done to create more demand among the investors.

Figures from the securities exchange show that, 12.5M shares worth Nu 1.2B were added in the market from bonus issue and other off-market transaction such as, employee stock purchase plan.

For instance, the Druk Punjab National Bank issued 32,000 shares worth Nu 0.32 million as part of Employee Stock Purchase Plan to its 64 employees through the Off-Market Window.

An employee stock purchase plan allows employees of a listed company to buy share of the company directly. This has also led to increase in number of shareholder accounts in the central depository.

trade

A volume of about 4.5M shares of 14 companies was also traded in the secondary market amounting to Nu 181.87M million last year.

Shareholding pattern

The paid up shares of some 21 listed companies amounted to 726M last year, of which the public owned only 32.5 percent.

Major shareholders and the government owned around 12 percent each and institutional investors held about 20 percent of the total paid up shares.

Major shareholders, the chief executive officer of RSEBL, Dorji Phuntsho said are top ten shareholders of the company including the promoters.

In principle, he said a listed company should at least give out 25 percent of its shares to the general public.

However, some of the old companies like BFAL and BCCL have less than five percent of shares owned by the public.

Companies’ performance

The Eastern Bhutan Coal Company declared the highest dividend of 300 percent to its shareholders after the company made Nu 248M net profit last year. About 27 percent of the company’s shareholders are public and the rest belongs to major shareholders.

Jigme Mining Corporation Limited also declared 150 percent dividend and a net profit of Nu 152M. Major shareholders own almost 71 percent of the company and the rest are public owned.

Druk Satair Corporation Limited declared a dividend of 125 percent and made a net profit of Nu 124M. About 36 percent of the company’s shares are held by the Dratshang, 35 percent by major shareholders, 24 percent by public and the rest by institutional investors.

The Panden Cement Authority limited earned a net profit of Nu 208M, the company declared 80 percent dividend. About 40 percent of the company’s shares are held by the government and 17 percent by public. The rest is being held by Dratshang and institutional investors.

While six companies did not declare any dividend last year, the rest of the companies’ dividend ranged from 5.7 percent to 75 percent.

A total of 4.81M units of corporate bond worth Nu 4.8B were also listed on security exchange last year.

Tshering Dorji

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