Dhaka stocks dropped sharply last week, extending the bear run to three weeks, as investors continued to sell shares amid uncertainties following the finance minister’s announcement that the government ‘would not allow’ legalisation of undisclosed money in the upcoming budget, market operators said. The finance minister, AMA Muhith, on May 8 and 9 said that they would not allow ‘whitening of black money in the upcoming budget.’
Market operators said Wednesday’s High Court verdict declaring illegal a BSEC order issued on November 22, 2011that had asked sponsor-directors of listed companies to individually hold minimum 2 per cent shares of the paid-up capital of their respective companies also put an impact on the bearish market on Thursday, last trading day of the week.
The Appellate Division of the Supreme Court, however, on Thursday evening stayed the HC verdict.
The key index of Dhaka Stock Exchange, DSEX, finished at 4,446.96 points, shedding 3.03 per cent or 138.16 points in last week.
The DSEX lost 249.46 points in the last three weeks.
Price corrections of the multinational companies after their record dates and share price fall of the state-owned enterprises following the government’s announcement that it would offload more SoE shares in the market also put impact on the market on Wednesday, market operators said.
They said investors started to lose confidence over the market following a Bangladesh Bank move to control banks’ capital market investment by penalising some banks.
Investors, however, regained confidence to some extent briefly in the last three weeks after the finance ministry had waived merchant banks and brokers from issuing directors’ personal guarantee for releasing refinance loans, operators said.
The DSE blue-chip index, DS30, slipped by 3.70 per cent, or 61.62 points, in last week to close at 1,604.39 points on Thursday.
DSES, the Shariah index of the bourse, closed at 984.84 points, shedding 2.77 per cent or 28.08 points.
Of the 301 shares and mutual funds traded in the week, 67 advanced, 220 declined and 16 remained unchanged.
Daily average turnover of the bourse declined to Tk 363.91 crore in the week from Tk 382.66 crore in the previous week.
Grameenphone led the turnover leaders with its shares worth Tk 67 crore changing hands.
Matin Spinning Mills, Square Pharma, Lafarge Surma Cement, Hwa Well Textiles, Meghna Petroleum, Bangladesh Submarine Cable Company, Emerald Oil Industries, Heidelberg Cement and LankaBangla Finance were among the other turnover leaders.
JMI Syringes & Medical Devices gained the most in the week, adding 14.18 per cent, while Renata lost the most, shedding 25.62 per cent.
-With New Age input
