Dhaka stocks declined for the second day on Thursday as investors remained cautious amid worries over mutual funds following the formation of a committee by the Bangladesh Securities and Exchange Commission to investigate an abnormal surge in unit prices of five MFs.
The ongoing subscription of Robi’s initial public offering also kept the secondary market subdued, market operators said.
DSEX, the key index of the Dhaka Stock Exchange, lost 0.19 per cent, or 9.76 points, to close at 4,879.96 points on Thursday after losing 17.97 points in the previous session.
The market started Thursday’s session downbeat and finished the session in the negative zone despite some recovery in the middle of the session, market operators said.
The DSE on the day launched a 15-minute pre-opening session and a 10-minute post-closing session after completing users’ acceptance test (UAT) and holding market awareness programmes among stakeholders.
The pre-opening session is between 9.45am and 10.00am while the post-closing session is between 2.30pm and 2.40pm.
Earlier on October 20, the Bangladesh Securities and Exchange Commission approved the sessions for the country’s premier bourse.
The turnover on the DSE on Thursday inched up to Tk 585.31 crore compared with that of Tk 544.99 crore in the previous session.
The subscription of Robi’ IPO began on Tuesday and a large number of investors placed their IPO applications for acquiring shares of Robi, the second largest mobile operator in the country.
Robi would raise Tk 523.79 crore through issuing 52.37 crore shares on the market. The subscription will end on November 23.
Some brokerage houses on Thursday declined to give margin loans to clients to invest in mutual funds as a notification issued in 2010 by the securities regulator bars stockbrokers and merchant banks from giving loans to their clients for MFs.
The brokerage houses used to provide loans to clients for investing in the MFs despite the BSEC notification, market operators said.
The BSEC on Tuesday formed a committee to investigate unusual price hike of five mutual funds that prompted many investors to sell off the units of the funds.
Investors recently invested a significant amount of fund in the sector, market operators said.
So, a section of investors paused trading shares on the market, they said.
EBL Securities in its daily market commentary said, ‘Most of the opportunist investors were releasing their funds to participate in the IPOs while worried investors of the mutual fund sector mostly favoured offloading their holdings since the BSEC declared scrutinising exorbitant price level of some selective units.’
Share prices of most of the companies declined on Thursday, but a surge in share prices of Beximco Pharmaceuticals, BEXIMCO, Renata Limited, and British American Tobacco saved the market from a significant fall.
DSE blue-chip index DS30, however, gained 0.06 per cent, or 1.14 points, to close at 1,701.33 points on the day.
Shariah index DSES also increased by 0.23 per cent, 2.6 points, to settle at 1,112.88 points. Of the 357 scrips traded on the DSE on Thursday, 166 declined, 91 advanced and 71 remained unchanged.
Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 67.29 crore changing hands on the day.
Square Pharmaceuticals, BRAC Bank, Bangladesh Export Import Company Limited, Grameenphone, Grameen Scheme Two, Associated Oxygen, Orion Pharmaceuticals, AB Bank 1st Mutual Fund and Orion Infusions were the other turnover leaders on the day.
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