Unusual attraction to debutant Fortune sends stocks to red

Staff Correspondent | Published: 23:35, Oct 20,2016

 
 

Unusual trading of debutant Fortune Shoes shares, that rose 501 per cent, sent Dhaka stocks to negative zone on Thursday with decline in turnover.
The key index of Dhaka Stock Exchange, DSEX, declined 0.21 per cent or 10.07 points, to close at 4,692.43 points on Thursday, the last trading session of the week.
Turnover of the bourse declined to Tk 500.75 crore from that of Tk 560.26 crore on Wednesday.
Market operators said that investors’ eagerness to buy the shares of debutant Fortune Shoes, that rose by 501 per cent or Tk 50.10 to Tk 60.10 from the opening Tk 10, affected the market. The company also topped the turnover list on Thursday with its shares worth Tk 48.60 crore changing hands.
Due to the unusual rise in share prices, price earnings ratio of Fortune, which reported Tk 1.10 as its earnings per shares for the accounting year ended on May 31 this year based on the post initial public offering number of shares, increased to Tk 42.32 and was commonly considered abnormal.
Operators also termed such price hike and investments trend as a reflection of investors’ imprudent decision.
They said that investors were ditching their existing holdings to buy shares of Fortune Shoes and two-third of the traded scrips ended in red on the day.
On the sectoral front, prices of textile shares got investors’ attention on the day with an average 1 per cent rise of the sector after it was on the decline in last couple of trading sessions.
On the other hand, prices of non-bank financial institutions and energy shares declined by 0.79 per cent and 0.44 per cent respectively on an average, while bank shares were mixed on the day.
DS30, the blue-chip index of the bourse, finished at 1,748.22 points, shedding 0.13 per cent or 2.30 points.
The Shariah index of the bourse, DSES, inched down to 1,111.76 points, declining 0.24 per cent or 2.70 points.
Of the 325 companies and mutual funds traded, 110 advanced, 156 declined and 59 remained unchanged.
‘The bourse continued to end flat, while DSEX went below 4,700.0 points level after staying above that level for the last couple of days,’ said IDLC Investments in its market commentary.
‘The stock captured Tk 0.49 billion or 9.7 per cent of the day’s total trade value to lead the turnover chart while appreciating by 501 per cent from its offer price,’ it said.
‘However, on sectoral basis, textiles topped the turnover chart which was followed by fuel and power and banks,’ it said.
Besides Fortune, the other turnover leaders were Doreen Power, National Bank Limited, Titas Gas, Singer Bangladesh, Square Pharmaceuticals, GSP Finance, Lafarge Surma Cement, Paramount Textiles and National Tubes.
Apart from Fortune, Evince Textiles gained the most, 9.86 per cent, among the existing companies, while Far Chemical Industries was the worst loser of the day, shedding 19.32 per cent. 

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