Peninsula Ctg, Golden Harvest shares soar on expansion news
Shares of Peninsula Chittagong and Golden Harvest rose yesterday, riding on very good news from both companies.
The hotel's stock grew 5 percent to Tk 22.60 following the company announcement that its board accepted a 30-year lease agreement with the Chittagong Port Authority for an additional 0.3 acres of land.
The land is next to the Chittagong Airport and Peninsula's second five-star hotel project, the company said in a security filing on the site of the Dhaka STOCK MARKET (DSE).
"Our second hotel in Chattogram is under construction, and we need the extra land because of its beautification," said Mohammed Nurul Azim, company secretary of Peninsula.
The hotel authorities raised Tk 116 crore from the stock market to construct the brand new five-star hotel.The company's profits rose to Tk 4.98 crore in the first half of 2020-21, up from Tk 3.56 crore in the same period the prior year.
Regardless of the coronavirus pandemic, the gains went up riding on the increased demand for food from the port city's middle-class.Its overhead costs declined, while its directors stopped getting remuneration from July last year in view of the existing crisis.
Stocks of Golden Harvest were up 1.80 % to Tk 17 following the board decided to spend money on the fast-rising e-commerce industry since it looks to expand into the food, grocery and medicine delivery markets together with hotel bookings and ticketing.
Golden Harvest will own 45 % 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 %, to close at 5,591 yesterday.
Turnover, a significant indicator of the currency markets, rose 44 % to Tk 1,043 crore. On the DSE, 80 stocks rose, 157 fell, and 121 remained unchanged.
