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Stocks inch down after two-day surge

BSEC suspends trading of Zeal Bangla shares

Staff Correspondent | Published: 23:13, Sep 14,2020

 
 

Dhaka stocks inched down on Monday after gaining in the previous two days as a section of investors went for booking profits while many others, encouraged by the current rally, continued buying shares.

DSEX, the key index of the Dhaka Stock Exchange, shed 0.03 per cent, or 1.91 points, to close at 5,092.14 points on the day after gaining 122.36 points in the previous two sessions.

The DSEX gained 232 points in the last eight sessions with just two negative sessions.

After a slight hike at the beginning of Monday’s session, the core index moved downwards and finished the session slightly down as investors were active on both sides of the trading fence, market operators said.

They said that share prices of most of the companies increased in the recent rally that provoked a group of investors to book profits.

But many other investors continued their investments in the market to get more profits, they said.

The market remained vibrant in the last two months with increased participation from investors. The index gained 1,010 points during the period.

A rise in fund flow on the financial market and fall of interest rate brought many new investors to the market, market operators said.

They said that various steps taken by the Bangladesh Securities and Exchange Commission for developing the market played the vital role in the rally on the market.

They said that poor governance, dearth of punitive actions and approval of fundamentally weak IPOs eroded confidence of the investors that had been the prime reason for a prolonged sluggishness on the market in the last two years.

The country’s economy continued to show signs of recovery amid high export earnings and remittance inflow that waned tension about a catastrophic impact of coronavirus on the economy, they said.

Share prices of BRAC Bank, Grameenphone, Beximco Pharmaceuticals dropped on the day.

Share prices of most of the companies under the ‘Z’ category continued rising amid the BSEC’s move to reshape the board of the companies.

Of the 357 scrips traded on the DSE on Monday, 143 advanced, 175 declined, and 34 remained unchanged.

Turnover on the bourse inched down to Tk 1,148.95 crore on Monday compared with that of Tk 1,329.72 crore in the previous trading session.

DSE blue-chip index DS30 lost 0.05 per cent, or 0.88 points, to close at 1,756.00 points on the day.

Shariah index DSES declined by 0.02 per cent, or 0.24 points, to settle at 1,170.42 points.

The Bangladesh Securities and Exchange Commission on Monday suspended trading of the shares of Zeal Bangla Sugar Mills with effect from today as the commission observed unusual transactions of the company’s shares and movements of prices of its shares.

The BSEC in an order said that the commission made the decision for the public interest.

It asked the DSE to maintain the suspension till further order.

The BSEC has recently faced criticisms as share prices of a number of fundamentally weak companies including Zeal Bangla soared abnormally.

Share prices of Zeal Bangla jumped more than 200 per cent in recent weeks.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 50.5 crore changing hands on  Monday.

Bangladesh Export Import Company, BRAC Bank, Orion Infusions, Khulna Power Company, United Power Generation Company, Orion Pharmaceuticals, Delta Brac Housing Finance, Nahee Aluminum and Square Pharmaceuticals were the other turnover leaders on the day.

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