Stocks fall on investors’ worry about court hearing

Stocks at both the bourses -- Dhaka and Chittagong -– entered the negative territory on Tuesday as the investors remained alert about the outcome of tomorrow’s (Wednesday’s) hearing on writ petitions over the SEC’s directive on minimum share holding.

Dhaka Stock Exchange (DSE) benchmark index, DGEN, lost 0.73 percent or 36 percent to close at 5020.21 though the premier bourse gained 1.10 percent or 55.34 points on Monday.

Meanwhile, Chittagong Stock Exchange (CSE) key index, CSCX, shed 81.33 percent to close at 9472.1437. The port city bourse, however, showed a gain of 123.75 points to close at 9553.4831 on Monday.

“Spontaneous participation was hindered as investors remained watchful about tomorrow’s hearing,” IDLC Investment Limited said in its daily market analysis.

It said the psychological level of 5000 points (DSE) acted as mean-reverting point for the last six trading sessions.

During the day’s downward movement at the DSE, all the major sectors plummeted while non-bank financial institution -NBFI (-2.06%), Textile (-1.55%) and Fuel and Power (-1.40%) were the most affected sectors. Food and Allied sector (+1.17%) was the major exception.

The DSE turnover, however, saw a slight rise today with Tk 433 crore against Tk 348 crore recorded on Monday.

The premier bourse turnover was Tk 389 crore on Sunday while it recorded Tk 421 crore and Tk 383 crore turnovers respectively on Thursday and Wednesday.

The port city bourse turnover also saw a rise with Tk 53.99 crore against Tk 48.47 crore recorded on Monday. The bourse recorded Tk 46.97 crore, Tk 61.69 crore and Tk 49.20 crore respectively on Sunday, Thursday and Wednesday.

Of the issues traded at the DSE, only 73 issues gained, 170 suffered losses and 23 remained unchanged.

At the CSE, 45 gained, 124 suffered losses and 14 remained unchanged at the end of the day’s trading.

Meanwhile, the High Court is scheduled to hear all the writ petitions on Wednesday, filed by directors of listed companies against the Securities and Exchange Commission’s (SEC) mandatory shareholding rules. Justice Farid Ahmed and Justice Sheikh Hassan Arif set the date for the hearing.

On November 22, the SEC made it compulsory for directors to hold at least 2 percent stakes individually in their own companies.

The commission also made it mandatory for the directors of a listed firm to jointly hold a 30 percent stake in the firm.

The SEC set a six-month deadline that ends on May 22 for the directors to buy stocks from the market.

News Source: 
UNB