Stocks slump on GP’s SMP status, new banks

Dhaka stocks on Monday fell sharply as investors went for selling shares of Grameenphone on concern over its SMP status, and financial companies due to the central bank’s move to approve three more banks in the crowded and scam-hit financial sector.
DSEX, the key index of Dhaka Stock Exchange, shed 51.30 points, or 0.88 per cent, to close at 5,724.52 points on Monday.
The share price of leading mobile operator Grameenphone, which is the largest capitalised scrip and has significant impact on the movement of DSEX, fell by 3.3 per cent to close at Tk 377.1 on Monday.
GP’s share price lost 3.85 per cent last week as Bangladesh Telecommunication Regulatory Commission on February 10 declared GP as significant market power.
Market operators said investors became concerned about the status as the media reported that the commission would impose additional conditions on GP for running its business as SMP.
On Monday, DSEX’s losses outweighed gains in the previous three trading sessions. DSEX had advanced by 44 points in the previous three trading sessions.
The core index started falling from the beginning of Monday’s session and the fall intensified after mid-session as investors sold heavily shares of GP and financial companies including banks, non-bank financial institutions and insurance companies.
Investors went for offloading financial scrips as Bangladesh Bank on Sunday approved three more new banks, market operators said.
‘The financial market, especially the banking sector is already overcrowded and hit by repeated scams. So, the BB’s approval of three more banks soured the investors’ appetite for financial scrips,’ said a stockbroker.
EBL Securities in its daily market commentary said, ‘Bangladesh Bank decided to approve three more private commercial banks and investors seemed cautious regarding the sector’s concentration.’
The average share prices of banks plunged by 1.27 per cent on the day.
The NBFIs’ movement was also negative because of a slight profit fall of IDLC Finance in 2018, despite the company hiking cash dividend by 5 percentage points for the year.
The earnings per share of IDLC stood Tk 5.76 in 2018 against Tk 6.13 in 2017.
The company, however, declared 35 per cent cash dividend for 2018 against 30 per cent for 2017.
The average share prices of NBFIs fell by 0.76 per cent on the day.
Among the major sectors, only fuel and power sector advanced on the day with 0.45 per cent gain.
Out of the 347 issues traded on the day, 242 declined, 68 advanced and 37 remained unchanged.
The turnover on the bourse, however, increased to Tk 891.67 crore on Monday from Tk 725.49 crore on the previous day because of sell-offs.
DSE blue-chip index DS30 also lost 0.86 per cent, or 17.35 points, to close at 1,987.39 points.
Shariah index DSES shed 0.76 per cent, or 10 points, to finish at 1,304.71 points.
United Power Generation Company led the turnover leaders with its shares worth Tk 52.70 crore changing hands on the day.
Fortune Shoes, Bangladesh Submarine Cable Company, Peninsula Chittagong, Alif Industries, Paramount Textiles, Square Pharma, Grameenphone, Shurwid Industries and ML Dyeing were the other turnover leaders.
Peninsula Chittagong gained the most on the day with a 9.93-per cent increase in its share prices while Imam Button was the worst loser, shedding 10 per cent.
Source: http://www.newagebd.net

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