SEC intervention makes investors jittery
Tuesday, 7 August 2007
FE Report
The stock prices of most of the issues on the Dhaka Stock Exchange (DSE) continued to dip for the second consecutive day Monday as selling pressure mounted amid a declining turnover.
Brokers said investors are now shying away from making fresh investments due to some interventions from the Securities and Exchange Commission (SEC) including withdrawal of netting facilities and strict monitoring of loans disbursed by merchant banks.
"Apart from these, the worsening flood situation across the country has also compelled investors to encash money by selling the stocks," a DSE source said.
Both the total turnover and the total market capitalisation on the DSE declined in the losers dominated market.
All the market barometers-DSE General Index (DGEN), DSE-20 Index (DS20 and All Shares Price Index (DSI)-shed 44.703 points, 44.79 points and 37.368 points to close at 2308.668, 2072.03 and 1887.340 respectively.
The total turnover declined to Tk 1.342 billion from Tk 1.562 billion on the previous day. The total market capitalisation on the day declined to Tk 530.087 billion from Tk 538.713 billion.
Out of 211 traded issues prices of 36 gained, 162 declined and 13 remained unchanged on the day.
Square Pharma maintained its position as the turnover leader with traded volume worth Tk 103.609 million, followed by Summit Power Tk 99.322 million, Desco Tk 97.439 million, BRAC Bank Tk 87.262 million, UCBL Tk 82.594 million, NBL Tk 79.336 million, Southeast Bank Tk 56.771 million, Pubali Bank Tk 34.442 million, Power Grid Tk 31.165 million and AB Bank Tk 31.149 million.
Meanwhile, in response to a DSE query, Aramit has stated that there was no undisclosed price sensitive information of the company for recent unusual price hike.
In another development, the SEC has issued show-cause-cum-hearing notice to the company, its Directors, Managing Director and Company Secretary of Saleh Carpet Limited in connection with the compliance of transfer of shares.
The SEC has also warned the companies, their Directors, Managing Directors and Company Secretaries of Meghna Shrimp Culture Ltd., Federal Insurance Co. Ltd., Petro Synthetic Products Ltd., Bangladesh Hotels Ltd., CMC Kamal Textile Mills Ltd. and Prime Insurance Co. Ltd for non-compliance of securities laws in connection with the delayed furnishing of the audited financial statements for the year ended on December 31, 2006.
The stock prices of most of the issues on the Dhaka Stock Exchange (DSE) continued to dip for the second consecutive day Monday as selling pressure mounted amid a declining turnover.
Brokers said investors are now shying away from making fresh investments due to some interventions from the Securities and Exchange Commission (SEC) including withdrawal of netting facilities and strict monitoring of loans disbursed by merchant banks.
"Apart from these, the worsening flood situation across the country has also compelled investors to encash money by selling the stocks," a DSE source said.
Both the total turnover and the total market capitalisation on the DSE declined in the losers dominated market.
All the market barometers-DSE General Index (DGEN), DSE-20 Index (DS20 and All Shares Price Index (DSI)-shed 44.703 points, 44.79 points and 37.368 points to close at 2308.668, 2072.03 and 1887.340 respectively.
The total turnover declined to Tk 1.342 billion from Tk 1.562 billion on the previous day. The total market capitalisation on the day declined to Tk 530.087 billion from Tk 538.713 billion.
Out of 211 traded issues prices of 36 gained, 162 declined and 13 remained unchanged on the day.
Square Pharma maintained its position as the turnover leader with traded volume worth Tk 103.609 million, followed by Summit Power Tk 99.322 million, Desco Tk 97.439 million, BRAC Bank Tk 87.262 million, UCBL Tk 82.594 million, NBL Tk 79.336 million, Southeast Bank Tk 56.771 million, Pubali Bank Tk 34.442 million, Power Grid Tk 31.165 million and AB Bank Tk 31.149 million.
Meanwhile, in response to a DSE query, Aramit has stated that there was no undisclosed price sensitive information of the company for recent unusual price hike.
In another development, the SEC has issued show-cause-cum-hearing notice to the company, its Directors, Managing Director and Company Secretary of Saleh Carpet Limited in connection with the compliance of transfer of shares.
The SEC has also warned the companies, their Directors, Managing Directors and Company Secretaries of Meghna Shrimp Culture Ltd., Federal Insurance Co. Ltd., Petro Synthetic Products Ltd., Bangladesh Hotels Ltd., CMC Kamal Textile Mills Ltd. and Prime Insurance Co. Ltd for non-compliance of securities laws in connection with the delayed furnishing of the audited financial statements for the year ended on December 31, 2006.