Stocks drop as BSEC sends DSE share sales into uncertainty

Staff Correspondent | Published: 00:05, Feb 13,2018

 
 

Dhaka stocks declined on Monday after a 128.32-points surge in the previous session as investors were disheartened by the news that the regulator has been putting pressure on the Dhaka Stock Exchange’s board to back off from its decision of choosing top bidder and to select an India’s National Stock Exchange-led consortium as its strategic partner.
The DSE’s key index, DSEX, lost 0.19 per cent, or 11.66 points, to finish at 6,082.29 points after gaining 170 points in the previous three trading sessions.
In line with the previous session, the market opened positive that did not sustain for long as investors, discouraged by the news that the Bangladesh Securities and Exchange Commission was interfering in the DSE’s strategic partner selection, went for selling shares, market operators said.
The media reported on Monday that the commission had put huge pressure on the DSE board to step back from its decision of picking a Shanghai Stock Exchange-led consortium and choose the NSE-led consortium as its strategic partner, they said.
After the bourse on January 6 agreed in principle to sell 25 per cent of its stake to the Chinese consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange as it quoted Tk 22 a share, the regulator has been forcing the DSE board to send proposal to the commission in favour of the NSE-led consortium even though it quoted Tk 15 a share.
The key index soared on Sunday after the DSE board approved the Chinese consortium’s bid on Saturday.
Besides, investors were cautious about the ongoing liquidity crisis that was predicted by bankers to get worse ahead of the national elections.
The average share prices of most of the large-capitalised sectors declined on the day. Cement, non-bank financial institutions, pharmaceuticals and telecommunication slid by 0.8 per cent, 0.8 per cent, 0.6 per cent and 0.4 per cent respectively that weighed most on the index.
On the other hand, a rise in the share prices of bank sector by 0.2 per cent saved the market from further fall.
The turnover at the DSE, however, increased to Tk 486.63 crore on Monday compared with that of Tk 455.45 crore in the previous session.
‘The core index opened with positive vibe but after an hour it took downturn as investors remained watchful before the upcoming election and amid liquidity crisis persisting in the market,’ said EBL Securities in its daily market commentary.
Out of the 337 companies and mutual funds traded, 183 advanced, 108 declined and 44 remained unchanged.
DS30, the blue-chip index of the DSE, also shed 0.52 per cent, or 11.78 points, to close at 2,244.04 points.
Shariah index DSES lost 0.50 per cent, or 7.17 points, to close at 1,405.23 points.
Grameenphone led the turnover chart on the day with its shares worth Tk 23.09 crore changing hands.
Square Pharmaceuticals, LankaBangla Finance, BRAC Bank, Paramount Textiles, National Tubes, City Bank, Monno Ceramics, IFAD Autos and Mercantile Bank were the other turnover leaders.
Bangladesh Submarine Cable Company was the top gainer with a 7.15-per cent rise in its share prices, while Green Delta Insurance was the worst loser, shedding 7.61 per cent. 

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