SoE share prices continue to fall
Dhaka stocks opened the week flat with the DSE general index gaining 1.79 points on Sunday as a
rise in share prices of banks and insurance companies was cancelled out by a fall in share prices of state-owned enterprises which have been losing prices in their shares following the government’s decision of offloading its more stakes in the eight listed SoEs, market operators said.
Share prices of non-bank financial institutions and mutual fund also dropped on Sunday.
The benchmark general index of DSE gained 0.02 per cent to close at 7,988.71 points on the day.
On October 31, the finance minister, AMA Muhith, announced that more government-held shares in the eight SoEs would be offloaded in the capital market within 20 days.
A DSE stockbroker said investors bought shares of bank and insurance companies as they were betting on upcoming corporate results of the banks and paid up capital raising move by the insurance companies.
DESCO fell by 9.24
per cent, Jamuna Oil
2.34 per cent, Khulna Power Company 0.86 per cent, Meghna Petroleum 1.91 per cent, Padma Oil 0.14 per cent, Power Grid 3.21 per cent, and Titas Gas 4.87 per cent on the day.
Yawer Sayeed, top official of the asset management firm, AIMS of Bangladesh, told New Age that when the government offloaded more state-held shares in the SoEs, prices of the existing shares of the firms would drop sharply because of an increase in supply of the shares. ‘So, investors are selling SoE shares to take profits,’ he said.
The broader DSE all shares price index advanced by 0.43 points, or 0.01 per cent, to close at 6,641.37 points on Sunday.
Out of the total 243 issues traded on the DSE, 86 advanced, 155 declined and two remained unchanged.
The daily turnover at the bourse was Tk 2,720.75 crore, up by Tk 230.45 crore from the previous trading day.
Beximco topped the turnover leaders with 60.62 lakh shares valued at Tk 200.45 crore traded on the day.
The other turnover leaders were DESCO, Titas Gas, Peoples Leasing and Financial Services, Confident Cement, Standard Bank, Fareast Islami Life Insurance, Premier Bank, NBL and Meghna Life Insurance.
Dhaka Insurance was the day’s biggest gainer, posting a 10-per cent rise in its share prices while Dulamia Cotton was the worst loser on the day.
