Stocks dip ahead of Oimex debut

Staff Correspondent | Published: 00:05, Nov 06,2017

 
 

Dhaka stocks dropped on Sunday after gains in the previous four sessions as investors headed to lock in cash from most of the scrips, especially to purchase the shares of Oimex Electrode that is set to debut on Monday.
The key index of Dhaka Stock Exchange, DSEX, declined 0.42 per cent or 26.03 points to close at 6,072.99 points on Sunday after gaining 104 points in previous four trading sessions.
The market was downtrend from the beginning of the session that remained in the negative zone for rest of the session as investors went for profit taking shares sales ahead of Oimex debut.
They said that investors brought fund to invest in the company which is set to make its share trading debut on Monday at both the bourses under “N” category.
A section of investors usually invest heavily on newly listed companies to get quick return that pose irrational shoot up of the prices of newly listed scrips on their debut, stockbrokers said.
Earlier, the share prices of BBS Cables, Shepherd Industries and Aamra Networks skyrocketed by 800 per cent, 440 per cent and 258.97 per cent respectively on their debut trading day mainly due to investors’ irrational hype over newly listed companies and small-capitalised scrips in general.
The investors’ application to subscribe Oimex Electrode IPO has already soared by 73 times against its offer size, meaning investors deposited Tk 1,095 crore against its offer size worth Tk 15 crore that displayed the intense irrational interest of investors towards the company.
Moreover, the share prices of most of the scrips declined on the day as many investors went on profit taking after gains in recent times.
The share prices of Grameenphone, British American Tobacco and Power Grid declined on the day after surge in recent days.
Banks led the market move on the day with decline in share prices by 0.7 per cent while non-bank financial institutions, energy and telecommunication also joined with the banks’ downtrend.
On the other hand, the surge in share prices of engineering and cement increased by 0.5 per cent and 0.3 per cent respectively that saved the market from further fall, they said.
Share prices of Investment Corporation of Bangladesh increased as the company declared 35 per cent dividend to its shareholders on Monday.
‘The prime bourse of the country started the first session of the week in a downbeat tune as profit booking tendency has been displayed by the investors,’ said EBL Securities in its daily market commentary.
Investors’ watchful stance has pulled down the index to the red zone at the end of the session as selling pressure on sector specific stocks from Bank, Fuel & Power & Telecommunication sectors prevailed, it said.
Of the 332 companies and mutual funds traded, 203 declined, 87 advanced and 38 remained unchanged.
Turnover on the bourse declined to Tk 538.49 crore compared with that of Tk 675.92 crore in the previous trading session.
DS30, the blue-chip index, slipped 0.14 per cent or 3.09 points to finish at 2,198.36 points.
The Shariah index, DSES, declined 0.35 per cent or 4.67 points, to close at 1,324.42 points.
LankaBangla Finance led the turnover chart with its shares worth Tk 25.83 crore changing hands.
BBS Cables, IFAD Autos, Western Marine Shipyard, Shahjalal Islami Bank, Eastern Housing, Fu-Wang Food, Square Pharmaceuticals, EXIM Bank and BRAC Bank were other turnover leaders.
Monno Ceramics gained the most on the day with a 6.79 per cent increase in its share prices, while Stylecraft was the worst loser, shedding 40.97 per cent. 

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