Dhaka stocks extended losses last week, fourth week in a row, as tensions on the political front and worries over a legal battle on mandatory shareholding continued to haunt investors.
DGEN, the benchmark general index of Dhaka Stock Exchange, lost 1.67 per cent, or 84.84 points, to close the week at 4,991.79 points.
The DGEN lost 375.74 points in the past four weeks after a six-week bull run when it had gained 1,022 points. Average daily turnover of the Dhaka bourse also declined by 7.17 per cent last week to Tk 357.40 crore from Tk 384.98 crore in the previous week as many investors took a ‘wait-and-see’ policy.
Of the 276 issues traded last week, 67 issues gained, 204 lost, and five remained unchanged.
Market operators said the investors’ mood was dampened by the worries over the legal battle in the beginning of the week and Thursday’s general strike enforced by the BNP-led 18-party alliance later intensified the situation.
On Wednesday, High Court bench of Justice Farid Ahmed and Justice Sheikh Hassan Arif adjourned the hearing of two writ petitions filed against the Securities and Exchange Commission’s rule on mandatory shareholding by directors of the listed companies until Thursday because of time shortage. But, the hearing was not held on Thursday.
The writ petitioners challenged the SEC’s rule that said directors of the listed companies must hold 2 per cent shares individually and 30 per cent jointly in their respective companies.
The SEC issued the rule on November 22, 2011 and asked the directors to fulfil the requirement by May 21.
‘Investors are on their toes as directors have to fulfil the requirement by Monday [tomorrow],’ said a DSE stockbroker.
‘So, all are waiting for HC verdict on the matter.’
Meanwhile, the DSE extended its office hours to 8pm every day till May 22 to facilitate completing the formalities of share purchases by directors of the listed companies.
Of the five trading sessions last week, the market lost 139 points in four sessions and gained 55 points in one session.
The DGEN lost 74.82 points on Sunday only to gain 55.34 points on Monday. In the next three sessions — on Tuesday, Wednesday and Thursday — the market lost 36.94 points, 9.57 points and 18.85 points respectively.
Banks sector was the only gaining sector that rose by 0.12 per cent last week.
Fuel and power sector lost 3.29 per cent, followed by non-bank financial institutions that lost 3.12 per cent, pharmaceuticals 2.96 per cent and telecommunications lost 0.81 per cent.
LankaBangla Finance topped the week’s top 10-turnover leaders with its shares worth Tk 81.65 crore changing hands. The other turnover leaders were City Bank, Beximco, United Commercial Bank, Beximco Pharma, Meghna Petroleum, Jamuna Oil, Grameenphone, Lafarge Surma Cement and Social Islami Bank.
-With New Age input
