Turnover hits three-and-half-month low
Dhaka stocks declined for the second trading session on Sunday, first trading session of the week, with the turnover at the Dhaka Stock Exchange hitting its three-and-a-half-month low as investors overreacted to a regulatory step against Shahjibazar Power Company Ltd.
The key index of the DSE, DSEX, closed at 4,838.11 points, shedding 1.25 per cent or 61.49 points.
Turnover at the bourse dropped to Tk 348.99 crore, lowest since August 3 this year when the turnover was Tk 428.70 crore.
Market operators said investors might be overreacting to a Bangladesh Securities and Exchange Commission’s decision over Shahjibazar Power Company.
The BSEC on Tuesday sent the shares of Shahjibazar Power Company to the spot market making them non-marginable due to the abnormal price hike of the company’s shares.
The capital market regulator asked all the merchant banks and brokers to report to the stock exchange daily about SPCL shares transaction through their entities.
Union Capital managing director Akter H Sannamat told New Age, ‘Investors might be overreacting to the BSEC’s directive that was issued by the regulator to contain unusual price hike of SPCL shares.’
‘It is the duty of the regulator to use its regulatory power to check something unusual,’ he said.
Since the regulatory action the shares of SPCL have been suffering from buyer crisis as brokerage houses and merchant banks are discouraging investors in trading the company’s shares.
SPCL’s shares declined by 8.72 per cent to Tk 257.60 on Sunday from Tk 338.80 on Tuesday last week.
Following the regulatory step against SPCL, the share prices of Khan Brothers PP Woven Bag were on the decline for the last three trading sessions as it closed at Tk 52.80 on Sunday after it had skyrocketed by 680 per cent to Tk 76.60 on its debut trading on Tuesday last week.
Besides, the share prices of all the newly-listed companies under the ‘N’ category fell on the day.
DS30, the blue-chip index of the DSE, fell by 1.62 per cent, or 29.55 points, to close at 1,785.13 points.
The Shariah index of the DSE, DSES, finished at 1,133.63 points, shedding 1.06 per cent or 12.18 points.
Of the 301 shares and mutual funds traded on the day, 63 advanced, 206 declined and 32 remained unchanged.
‘The market plunged into red as correction continued amid weakening turnover,’ IDLC Investments said in its daily market commentary.
‘The major index slashed another staggering 61.5 points as investors hurried to minimise portfolio loss,’ it said.
Western Marine Shipyard led the turnover leaders on the day with its shares worth Tk 19.60 crore changing hands.
Jamuna Oil, Khan Brothers PP Woven Bag, Barakatullah Electro Dynamics, Pharma Aids, Meghna Petroleum, Square Pharmaceuticals, JMI Syringes and Medical Devices, RSRM Steels and Keya Cosmetics were among the other turnover leaders.
Sonali Aansh gained the most with a 9.89-per cent increase in its share price, while Mithun Knitting lost the most, shedding 18.49 per cent.
-With New Age input
