OVERHEATED STOCK MARKETS : Bourses’ warning goes in vain
Stock prices and turnover at the Dhaka and Chittagong bourses gained on Tuesday as investors, encouraged by a swift turnaround of the markets in the previous day, bought shares for making quick gains, market operators said.
The benchmark general index of Dhaka Stock Exchange advanced by 66.62 points, or 0.90 per cent, to close at 7,463.05 points on the day.
The index gained 103.79 points on Monday after it lost 187.80 points on Sunday following the warning issued by the chiefs of the stock exchanges and the ruling of the Appellate Division of the Supreme Court that allowed the Securities and Exchange Commission to enforce the newly introduced net asset value-based margin loan calculation method.
‘Warning issued by the bourses failed to control the overheated market as the market made a quick rebound,’ said Yawer Sayeed, managing director of the asset management firm, AIMS of Bangladesh.
The SEC should take steps considering long-term impact on the market to control it, he said.
Increasing supply of shares to the market is required to stabilise it, he added.
Market experts said the warning issued by the bourses eventually helped big investors.
On October 9, the DSE and CSE jointly warned investors of huge losses in the wake of an overheated capital market.
Turnover at the DSE increased by Tk 454.14 crore to Tk 2,018.99 crore on Tuesday. The market indictors dropped in the previous two trading days following the Supreme Court ruling.
The selective categories index of Chittagong Stock Exchange increased by 149.45 points, or 1.07 per cent, to finish at 14,033.45 points on Tuesday.
The DSE’s all shares price index gained 83.34 points, or 1.37 per cent, to finish at 6,150.84 points on the day.
Grameenphone, a heavyweight issue, gained Tk 7 in its share prices to close at Tk 262.8 at the DSE.
Of the total 246 issues traded at the DSE, 103declined, 132 advanced, and 11 remained unchanged.
Summit Power topped the turnover leaders with 74.96 lakh shares valued at Tk 116.49 crore traded on the day.
The other turnover leaders were Peoples Leasing and Financial Services, Premier Bank, International Leasing and Financial Services, Uttara Finance, Shahjalal Islami Bank, Prime Finance and Investment, One Bank and RN Spinning.
Sonargaon Textiles was the day’s biggest gainer, posting an 11.23-per cent rise in its share prices while Dhaka Fisheries was the worst loser on the day.
