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Stocks drop for 3rd day

Robi’s IPO subscription ends today

Staff Correspondent | Published: 00:00, Nov 23,2020

 
 

Dhaka stocks dropped for the third day on Sunday as investors increased share sales amid recent sluggishness on the market amid the Robi Axiata’s initial public offering subscription that ends today.

Robi’s Tk 523-crore IPO subscription began on November 17.

DSEX, the key index of the Dhaka Stock Exchange, lost 0.71 per cent, or 34.87 points, to close at 4,845.09 points on Sunday.

The DSEX lost 62.6 points in the last three sessions.

In line with the previous session, the core index started falling from the very beginning of Sunday’s session and descended more sharply with the session progressing as investors increased share sales amid sluggishness on the market, market operators said.

The turnover on the DSE on Sunday plunged to Tk 495.53 crore compared with that of Tk 585.31 crore in the previous session.

Sunday’s turnover was the lowest after July 29 when it was at Tk 399.52 crore.

Market operators said that the market had been grappling with the overflow of IPOs and the domination of mutual fund and insurance sectors on the market.

A large number of investors placed their IPO applications for acquiring shares of Robi, the second largest mobile operator in the country, they said.

EBL Securities in its daily market commentary said ‘The capital market has witnessed major correction while investors are concentrated on raising fund to secure an IPO lot as Robi, the giant IPO is set to hit the market.’

Unit prices of mutual funds, which had ballooned in recent weeks, kept falling on Sunday following a Bangladesh Securities and Exchange Commission’s move to investigate unusual price hike of five mutual funds.

Besides, some brokerage houses are now declining 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 providing loans to their clients for MFs.

The brokerage houses used to provide loans to clients for investing in the MFs despite the BSEC notification remaining effective, market operators said.

Among the large capitalised companies, share prices of Beximco Pharmaceuticals, BEXIMCO, BRAC Bank, Grameenphone and United Power Generation Company dropped on the day.

The average share prices mutual funds, bank, energy and pharmaceuticals dropped by 3.3 per cent, 0.9 per cent, 0.7 per cent and 0.4 per cent respectively.

The average share prices of textile sector continued declining as the possible second wave of coronavirus weighed on export.

DSE blue-chip index DS30 dropped by 0.8 per cent, or 13.55 points, to close at 1,687.78 points on the day.

Shariah index DSES also shed 0.44 per cent, 4.95 points, to settle at 1,123.92 points.

Of the 357 scrips traded on the DSE on Sunday, 196 declined, 70 advanced and 78 remained unchanged.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 43.2 crore changing hands on the day.

Bangladesh Export Import Company, AND Telecom, Paramount Textiles, BRAC Bank, SS Steel, Quashem Industries, Grameen Scheme Two, Provati Insurance and Pioneer Insurance were the other turnover leaders on the day.

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