Dhaka stocks declined again on Thursday as investors anxiously waited for the Appellate Division ruling on a legal battle over market regulator’s order on mandatory 2 per cent shareholding by listed company sponsor-directors. DSEX, the benchmark general index of the Dhaka Stock Exchange, declined 0.60 per cent or 26.56 points, to close at 4,384.06 points.
The DSEX had gained 47.13 points on Wednesday after losing 213 points in the previous eight trading sessions.
There were media reports that the Appellate Division on Thursday would hear a Securities and Exchange Commission appeal challenging the High Court verdict that had declared a SEC order on mandatory 2pc shareholding of listed company directors illegal.
The market regulator’s appeal was not on the cause-list for hearing on Thursday.
Market operators said that some investors had taken a wait and see approach on Thursday as they were hoping that the Appellate Division would deliver its ruling on the SEC order.
‘The market had been on a negative for seventh consecutive sessions before Wednesday. Although it rose on Wednesday, some investors lost patience on Thursday and went into selling because of lack of activities from large investors, especially institutional investors,’ said a stockbroker.
The High Court on May 14 declared a BSEC directive illegal, which was issued on November 22, 2011 asking sponsor-directors of listed companies to individually hold minimum 2 per cent shares of the paid-up capital of their respective companies.
The BSEC took the matter to the Appellate Division, and its chamber judge on May 15 stayed the HC verdict setting May 22 for hearing by its regular court.
Some investors were nervous as they thought that if the HC verdict remained in force some of the company directors might offload their holdings in the depressed market.
Turnover of the bourse also declined to Tk 258.79 crore on the day from previous day’s Tk 271.35 crore.
Of the 291 shares and mutual funds traded on the day, 87 advanced, 159 declined and 45 remained unchanged.
DS30, the blue-chip index of the bourse, declined 0.93 per cent, or 15.01 points, to close at 1,589.60 points.
The Shariah index of the DSE, DSES, closed at 972.91 points, losing 0.98 per cent or 9.72 points.
All the major sectors closed negative on Thursday—telecommunication declined 1.95 per cent, food & allied 1.54 pre cent, pharmaceuticals 1.39
per cent, power 0.60 per cent, banks 0.02 per cent and the non-bank financial institutions lost 0.37 per cent.
Square Pharmaceuticals led the turnover leaders’ list with its shares worth Tk 20.19 crore changing hands.
Lafarge Surma Cement, Prime Bank, Heidelberg Cement, Grameenphone, Hwa Well Textiles, Active Fine Chemicals Industries, Orion Pahrma, AB Bank, and Matin Spinning were among the other turnover leaders.
-With New Age input
