Golden Harvest, Peninsula Chittagong sees stock rise

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Peninsula Chittagong and Golden Harvest saw their stocks rise on the 9th of March.

The hotel’s stocks grew 5 per cent to Tk 22.60 after the company announced that its board accepted a 30-year agreement on lease with the Chittagong Port Authority for an additional 0.3 acres of land, reports The Daily Star.

The land is near to the Chittagong Airport and is Peninsula’s second 5-stat hotel project, the company stated in a security filing on the website of the Dhaka Stock Exchange (DSE).

“Our second hotel in Chattogram is under construction, and we need the extra land for its beautification,” said Mohammed Nurul Azim, company secretary of Peninsula.

To construct a new five-star hotel, the hotel authorities raised Tk 116 crore through the stock market. The profit of the company rose to Tk 4.98 crore in the first half of 2020-21, up from Tk 3.56 crore, an increase of 39.9 per cent, in the same period from 2019-20.

Although there was the huge factor of the coronavirus pandemic, the profits went up riding on the increased demand for food from the port city’s middle-class. In the current crisis, the overhead costs decreased while the directors stopped receiving remuneration from July of 2020. 

After the board decided to invest in the rapid rising e-commerce industry, the stocks of Golden Harvest were up 1.80 per cent to Tk 17, as they looked to expand into the food, grocery and medicine delivery markets as well as the hotel bookings and ticketing.

Golden Harvest will own 45 per cent of an e-commerce venture, equivalent to around Tk 5 crore. The DSEX, the benchmark index of the DSE, dropped 12.99 points, or 0.23 per cent, to close at 5,591 yesterday.

Turnover, an important indicator of the stock market, rose 44 per cent to Tk 1,043 crore. On the DSE, 80 stocks rose, 157 fell, and 121 remained unchanged. 

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