2014-05-20

Dhaka stocks fell for the seventh trading session on Monday with the turnover of the bourse hitting its seven-month low as many of the retail investors, panicked by the downward trend at the market, continued to sell their shares while institutional investors remained almost inactive. Turnover of the Dhaka Stock Exchange declined to Tk 217.07 crore on Monday from Tk 229.19 crore in the previous trading session.

Monday’s turnover was the lowest since October 22 last year when turnover at the bourse was Tk 188.82 crore.

The key index of the DSE, DSEX, finished at 4,364.27 points, shedding 0.86 per cent or 38.23 points.

The key index dropped to a fresh four-and-a-half-month low on Monday as it was at 4,330.63 points on January 7 this year.

The DSEX lost 211.23 points in the last seven trading sessions.

Despite a positive start on Monday, the market finished another depressed session as investors were apprehending further decline in the share prices, market operators said.

Almost all the sectors lost shine on the day except shares of some low capitalised companies, they said.

Operators said the turnover of the bourse declined accordingly as most of the investors decided to

wait and see the market

trend before taking their next investment move.

They said investors had been suffering from lack of confidence amid uncertainties in recent weeks following the finance minister’s

announcement that the government ‘would not allow’ legalisation of undisclosed money in the upcoming budget.

The finance minister, AMA Muhith, on May 8 and 9 said that they would not allow ‘whitening of black money in the upcoming

budget.’

Recently the Bangladesh Bank in a bid to control the banks’ capital market investment had fined and warned some banks for increasing their capital market investment beyond the allowable limit that also dejected investors, market operators said.

They said the shakiness turned into panic as the High Court on Wednesday last week declared illegal a Bangladesh Securities and Exchange Commission directive issued on November 22, 2011 that had asked sponsor-directors of listed companies to individually hold

minimum 2 per cent shares of the paid-up capital of their respective companies.

The Appellate Division of the Supreme Court, however, on Thursday evening stayed the HC verdict.

Besides, after the demutualisation of the stock exchanges and formation of demutualised boards, the stock exchanges are yet to take any visual effort to boost investors’ confidence over the new boards, said operators.

DS30, the blue-chip index of the bourse, shed 0.92 per cent, or 14.85 points, to close at 1,583.06 points on Monday.

The Shariah index of the DSE, DSES, closed at 971.40 points, slipping by 1.05 per cent or 10.36 points.

Grameenphone led the turnover leaders on the day with its

shares worth Tk 9.89 crore changing hands.

Hwa Well Textiles, Lafarge Surma Cement, Square Pharmaceuticals, Matin Spinning, Heidelberg Cement, AFC Agro Biotech, Eastern Housing, Padma Oil and Emerald Oil were among the other turnover leaders.

Kohinoor Chemicals gained the most on the day with a 7.89-per

cent gain, while Summit Power declined the most, shedding 14.81 per cent.

The DSE board on Monday

decided to enlist FAR Chemical Industries.

The company have already raised Tk 12 crore floating its 1.20 crore shares through an initial public offering after getting approval from the BSEC.

The earning per share of FAR Chemical Industries was Tk 5.01 while net asset value per share was Tk 15.55 last year as per the company’s audited financial statement for the year ended on June 30, 2013.

-With New Age input

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