Stocks dip as Grameenphone shares slump
Many investors continued to sell shares to opt for safer and more profitable securities
Indices extended losses today as the price of Grameenphone shares slumped, and risk-averse investors went into a sell frenzy.
DSEX, the prime index of the Dhaka Stock Exchange, plunged 48 points or 1 percent to close the day at 4,651 points.
The Shariah-based DSES index also gave up 12 points or 1.1 percent to settle at 1,074 points, while the blue-chip index DS30 lost 21 points or 1.3 percent to stand at 1,571 points.
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At the Chittagong Stock Exchange, the benchmark index Caspi shed 116 points or 0.8 percent to close at 14,264 points.
The indices displayed volatility in intraday performance graphs, but continued the declining trend till the end of the trading session.
Grameenphone, the large-cap stock got a beating today that led the market fall, according to the Daily Market Review of EBL Securities Ltd. This is because the court recently passed an order for Grameenphone to pay the remaining Tk1,000 crore in 90 days out of its previous order to pay Tk2,000 crore
Many investors continued to sell shares to opt for safer and more profitable securities, the review added.
The Appellate Division of the High Court has ordered BTRC to ensure Grameenphone's smooth business operations. However, the telecom regulator's restrictions on Grameenphone will continue until the case pending in the lower court for the audit claim is settled, according to the Daily Market Review of UCB Capital Management Ltd.
The telecom service provider was the second most traded stock with a turnover value of Tk22.7 crore, closing at Tk298.4 per share. Moreover, it was also the second worst loser totday, with a 6.6 percent drop in price, after witnessing a 7.4 percent surge in the previous session.
Turnover at the DSE declined 10 percent to Tk600.6 crore today, from Tk668.5 crore in the previous session.
However, turnover at the port city bourse increased 12 percent from Tk23.3 crore to Tk26 crore today.
The pharmaceuticals sector contributed the highest, 18.3 percent, to the total turnover value, followed by textile stocks adding 16.3 percent, and engineering sector adding 15.3 percent.
Most of the sectors faced price correction today, with only three sectors posting gains.
The telecom sector exhibited the highest price correction of 6.4 percent, thanks to the price slide of Grameenphone shares.
Among the other large-cap sectors, financial institutions lost 1.6 percent, banks lost 1 percent and the pharmaceuticals sector gave up 0.3 percent price in the sector return board.
VFS Thread Dyeing Ltd dominated the turnover chart with a turnover value of Tk26.9 crore, closing the day at Tk28.7 per share. The company was also the best performer on the gainers' table, advancing 9.9 percent.
Northern Jute Manufacturing Company Ltd was the day's worst loser after shedding 8.7 percent and closing at Tk384.9 per share, said the DSE website.
Among the company specific news, IPDC Finance Ltd has declared 10 percent cash and 5 percent stock dividend for the year ended on December 31, 2019, according to DSE news.
The company has also reported EPS of Tk1.82 for the year ended on December 31, 2019 as against Tk1.59 for the same period in 2018.
Losers outnumbered the gainers as out of the 356 issues traded, only 70 advanced, 263 declined, and 23 remained unchanged on the DSE trading floor.
