A plunge of the second most valued stock, BAT Bangladesh sent the prime index of the Dhaka Stock Exchange to one-month low on Monday.
BAT Bangladesh tumbled 7.50 per cent to Tk 479.80 per share on the first trading day after it got rid of the floor, as investors sold their holdings fearing further erosion.
As per a directive issued on February 6, the Bangladesh Securities and Exchange Commission (BSEC) withdrew the price restriction for the cigarette manufacturer, which was in place for more than 18 months.
BAT Bangladesh saw a huge selling pressure as soon as the market opened. By the end of the session, the company lost Tk 38.9 per share.
BAT alone accounted for a loss of almost 26 points of the benchmark index of the DSE. The index lost nearly 40 points in total.
Moreover, Grameenphone, whose floor price was lifted a day earlier, lost 1.68 per cent further to Tk 257.20 per share on Monday. The most-valued stock witnessed a correction by Tk 25 per share on Sunday.
The downturn in BAT Bangladesh and GP stocks had a notable impact, dragging the key index down to one-month low at 6,175.
Jittery investors continued sell-offs to safeguard their funds amidst the market's ongoing volatility and uncertainty, said EBL Securities.
"Withdrawal of floor price for GP and BAT Bangladesh, coupled with the addition of six more stocks in the Z category, exacerbated the market's downturn," said the stockbroker.
All the six stocks, which were downgraded to Z category, featured on the day's top loser list, losing between 8.33 per cent and 10 percent on Monday.
Fareast Life Insurance and Prime Textile lost 10 per cent each, followed by Active Fine Chemicals, AFC Agro Biotech, New Line Textile and Prime Finance.
Two other indices also ended lower. The DS30 index, which consists of blue-chip companies, lost 5 points to 2,108 while the DSES index, which represents Shariah-based companies, fell 5 points to 1,344.
The turnover stood at Tk 7.94 billion, down 19 per cent from the day before.
Losers took a strong lead over gainers, as out of 396 issues traded, 214 saw prices fall, 115 witnessed price appreciation and 67 remained unchanged.
Low-cap stock Central Pharma became the most-traded shares, with shares worth Tk 565 million changing hands, followed by Fu-Wang Ceramic, Fu-Wang Food, BD Thai Aluminum and Aftab Automobiles.
The Chittagong Stock Exchange also ended lower with its All Shares Price Index (CASPI) losing 100 points to 17,740 and the Selective Categories Index (CSCX) shedding 51 points to 10,640.
© 2024 - All Rights with The Financial Express
