AMCs kept themselves from buying shares last week
Tuesday, 18 May 2010
FE Report
The asset management companies have said they made profits by selling shares, when the market heated up last week and have abstained from buying more shares in a move to 'make the capital market stable'.
The asset management companies said it on Monday at a meeting with the Securities and Exchange Commission (SEC) at the commission building.
The meeting was held after the sudden spurt in trading in the market on the DSE with the turnover hitting Tk 20 billion mark on Wednesday.
Four asset management companies---ICB Capital Management Limited, AIMS, LR Global and RACE--- attended the meeting.
"The asset management companies assured the SEC that they had not bought shares at a high price that might have led to unrest in the market due to high demand. Moreover, the companies have made profits and increased supply by selling off shares, which were in their hands," an SEC official said after the meeting.
"Only one asset management company has admitted that it has bought some shares based on company fundamentals," he said.
The asset management companies have said they made profits by selling shares, when the market heated up last week and have abstained from buying more shares in a move to 'make the capital market stable'.
The asset management companies said it on Monday at a meeting with the Securities and Exchange Commission (SEC) at the commission building.
The meeting was held after the sudden spurt in trading in the market on the DSE with the turnover hitting Tk 20 billion mark on Wednesday.
Four asset management companies---ICB Capital Management Limited, AIMS, LR Global and RACE--- attended the meeting.
"The asset management companies assured the SEC that they had not bought shares at a high price that might have led to unrest in the market due to high demand. Moreover, the companies have made profits and increased supply by selling off shares, which were in their hands," an SEC official said after the meeting.
"Only one asset management company has admitted that it has bought some shares based on company fundamentals," he said.