Tk13,200cr wiped out as BSEC strife roils market
The benchmark index of the country's premier bourse declined last week, erasing Tk13,200 crore from market capitalisation as investors panicked over the ongoing turmoil within the stock market regulator.
Over the week, the DSEX, the key index of the Dhaka Stock Exchange (DSE), dropped 43 points to close at 5,203, while the blue-chip DS30 index fell 15 points to settle at 1,889.
Market activity showed a mixed trend, with 86 stocks advancing, 289 declining, and 20 remaining unchanged. Daily turnover also took a hit, dropping 29% to Tk362 crore.
The turmoil at the Bangladesh Securities and Exchange Commission (BSEC) stems from a two-day-long strike by its officials, demanding the resignation of the commission's top leadership. The protest follows allegations of misconduct against the chairman and other commissioners.
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In response, BSEC Chairman Khondoker Rashed Maqsood has taken a firm stance, declaring that he will not bow to what he calls "unjust demands" and has vowed to intensify investigations into stock market irregularities and corruption.
The crisis deepened further after Ashiqur Rahman, the commission chairman's gunman, filed a case against 16 BSEC officials, alleging that they had threatened the chairman and commissioners.
Amid the escalating tensions, market stakeholders, including the DSE Brokers Association and the Merchant Bankers Association, have urged an end to the chaos within the regulator as soon as possible.
Meanwhile, EBL Securities said in its weekly market review that the benchmark index of the capital bourse settled into losing territory this week as investors preferred to realise their short-term gains and stay on the sidelines amid lackluster market momentum during the Ramadan season.
The market witnessed a selling spree for three consecutive sessions from the beginning of the week as investors offloaded their recently appreciated holdings, it added.
However, bargain hunters emerged in the later part of the week to capitalise on the recent corrections, easing the selling pressure to some extent on the trading floor, said EBL Securities.
On the sectoral front, pharma led the way, contributing 15.4% to the DSE's total turnover, followed by textile at 14.6% and engineering at 10.3%.
In terms of individual performance, Orion Infusion topped the turnover chart, followed by Prime Bank, Beach Hatchery and Shinepukur Ceramics.
All the sectors, except fuel and power ended in red with paper sector being the biggest loser.
Junk stocks Progressive Life Insurance topped the gainers' chart as its share price surged by 17.74% to reach Tk45.80. Other notable gainers included Desco, Indo-Bangla Pharma and Eastern Lubricant.
On the flip side, S Alam Cold Rolled Steels was the worst performer, with its share price dropping 14.83% to Tk20.10. The other top losers were Bashundhara Paper, Tosrifa Industries and Hamid Rabrics.
