The Dhaka Stock Exchange (DSE) has downgraded two listed companies Singer Bangladesh PLC and Intech Limited to the Z category, citing negative retained earnings.
The reclassification took effect on Wednesday, increasing the number of companies in the DSE’s high-risk Z category to 127.
According to the DSE, Singer Bangladesh was moved from the A category, while Intech Limited was downgraded from the B category after both companies reported negative retained earnings.
Under the DSE Listing Regulations, any listed company with negative retained earnings is placed in the Z category, which is designated for companies considered to carry higher investment risk.
As a result of the downgrade, investors will no longer be eligible to obtain margin loans against shares of the two companies. Market participants also advise investors to exercise greater caution when trading shares of companies classified under the Z category.
The DSE regularly reviews and revises the category status of listed companies based on their financial condition and compliance with listing regulations.
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