Dhaka stocks continued to plunge on Sunday, four days in a row, as investors agonizingly waited for a decision of the Chief Justice on five writ petitions filed against a provision of the Securities and Exchange Commission Ordinance 1969.
DGEN, the benchmark general index of Dhaka Stock Exchange, lost 1.71 per cent, or 82.29 points, to close at 4,715.62 points. In the last four sessions, the DGEN had lost 308 points.
Market operators said investors during the four-hour trading sessions waited for any outcome of the five new writ petitions filed challenging the constitutionality of the Section-2cc of SEC ordinance, which allowed SEC to issue notification on mandatory shareholding by listed company directors.
A High Court bench on Tuesday sent the five petitions to the Chief Justice for a decision on whether the writs would be accepted as another HC bench earlier rejected three petitions that challenged the SEC notifications issued under Section 2cc.
The state lawyers told reporters that they were hoping to get a decision from the CJ on disposing of the petitions or sending the writs to a HC bench on Sunday. ‘Investors were hoping that the CJ might give a decision, which held the index from a sharp fall until mid-hours,’ said a stockbroker.
He said in late hours investors became disappointed and went for sell-offs.
‘Investors, who have banked on the SEC’s notification asking the directors to hold minimum 2 per cent shares for market stability feared that the legal battle might linger because of the delay,’ he said.
He also said many of the investors took a wait-and-see policy. ‘If Section 2cc is declared invalid, then the notifications issued under it will also become invalid.’ he said.
Market operators said that the investors had hoped for a stabilized market just after the SEC won a HC verdict over mandatory shareholding by listed company directors. ‘But the new petitions has now held the market back,’ he said.
They said participation of general as well as institutional investors fell sharply resulting in another low turnover of Tk 172.93 crore on Sunday. The turnover on Monday was 172.80 crore, gradually coming down from Tk 1,000 crore on April 12.
Of the 256 issues traded on Sunday, 29 advanced, 219 declined and eight remained unchanged.
Cement was the only gaining sector on Sunday with a rise of 0.45 per cent while non-bank financial institutions were the worst sectors declining 1.99 per cent on the day.
Banks declined by 1.76 per cent, power 1.56 per cent, pharmaceuticals 1.49 per cent and telecommunication declined by 1.32 per cent on the day.
Lafarge Surma Cement topped the turnover chart with shares worth Tk 18.47 crore changing hands. The other turnover leaders were Grameenphone, LankaBangla Finance, Jamuna Oil, Beximco, National Bank, Meghna Petroleum, Summit Power, MI Cement and Fareast Islami Life Insurance.
-With New Age input
