SEC directive, CDBL disruption push down share prices
Saturday, 4 August 2007
FE Report
The stock prices on the Dhaka Stock Exchange (DSE) dipped in the week ended Thursday amid a significant fall in the turnover triggered by a directive from the Securities and Exchange Commission (SEC) and also technical disruption in the Central Depository Bangladesh Ltd (CDBL).
As per an SEC directive, the netting facility of the A-category shares were suspended from Tuesday causing a 34.23 per cent decline in the turnover.
The SEC took the action to rein in the turnover surge which the DSE had witnessed over the past few months.
The daily average turnover declined to Tk 1.47 billion in the week from Tk 2.23 billion in the previous week.
The CDBL disruption on Wednesday also affected the turnover to decline significantly on the day when trading of the top five companies took place for 15 minutes only.
Two indices-DSE 20 and DSE General Index or DGEN-shed 60.42 points and 5.37 points to close at 2159.37 and 2396.12 respectively.
The All Share Price Index or DSI, however, gained 11.62 points to close at 1955.92.
DSE sources said the SEC actions to place trading of the shares of AB Bank, Power Grid, Summit Power, DESCO and BRAC Bank in the spot market and suspension of the financial adjustment facilities for A, B, G and N category shares will affect the market further.
"From now on investors have to be prepared with cash for transactactions of shares of all categories and this will definitely affect the turnover," a DSE member said.
Square Pharma and Southeast Bank were the first and second turnover leaders with Tk 553.74 million and Tk 344.96 million traded accounting for 7.52 per cent and 4.68 per cent respectively of the total trading.
The stock prices on the Dhaka Stock Exchange (DSE) dipped in the week ended Thursday amid a significant fall in the turnover triggered by a directive from the Securities and Exchange Commission (SEC) and also technical disruption in the Central Depository Bangladesh Ltd (CDBL).
As per an SEC directive, the netting facility of the A-category shares were suspended from Tuesday causing a 34.23 per cent decline in the turnover.
The SEC took the action to rein in the turnover surge which the DSE had witnessed over the past few months.
The daily average turnover declined to Tk 1.47 billion in the week from Tk 2.23 billion in the previous week.
The CDBL disruption on Wednesday also affected the turnover to decline significantly on the day when trading of the top five companies took place for 15 minutes only.
Two indices-DSE 20 and DSE General Index or DGEN-shed 60.42 points and 5.37 points to close at 2159.37 and 2396.12 respectively.
The All Share Price Index or DSI, however, gained 11.62 points to close at 1955.92.
DSE sources said the SEC actions to place trading of the shares of AB Bank, Power Grid, Summit Power, DESCO and BRAC Bank in the spot market and suspension of the financial adjustment facilities for A, B, G and N category shares will affect the market further.
"From now on investors have to be prepared with cash for transactactions of shares of all categories and this will definitely affect the turnover," a DSE member said.
Square Pharma and Southeast Bank were the first and second turnover leaders with Tk 553.74 million and Tk 344.96 million traded accounting for 7.52 per cent and 4.68 per cent respectively of the total trading.