Stocks maintain downward trend

The Daily Star  November 24, 2020
Star Business Report

Stocks fell for the fourth consecutive day yesterday due to thin investor participation amid the just-concluded subscription for the country’s biggest-ever initial public offering (IPO).

Robi Axiata, a mobile network operator, aims to raise Tk 523 crore from the market by issuing 52.37 crore ordinary shares at face value, eclipsing Grameenphone’s Tk 486.1 crore flotation in 2009.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dropped 23.26 points, or 0.48 per cent, to 4,817.70 yesterday.

Over the last four days, the index fell 88 points altogether, or 1.79 per cent. During the period, the stock value at the country’s premier bourse plunged 17 per cent, or Tk 67,792 crore, to Tk 328,172 crore, DSE data showed.

Aside from Robi, several other IPOs also kicked off in the last few weeks, causing a shortage of funds among investors, according to a senior official of a merchant bank.

As a result, around Tk 894 crore was withdrawn from the market through issuing shares.

The IPOs of the companies that perform well are necessary but the subscription schedule should have certain gaps so that investors have the time to collect the funds without harming the market, the merchant banker said.

Turnover, another key indicator of the stock market, rose 25 per cent to Tk 621 crore at the DSE yesterday.

Meanwhile, insurance stocks started to rise again. The sector witnessed a major rise in share prices for the last few months due to speculations.

To stop the unusual price hike, the Bangladesh Securities and Exchange Commission took actions against certain rogue players to bring the sector under control.

Nitol Insurance topped the gainers’ list yesterday, increasing by 10 per cent, followed by Provati Insurance, Express Insurance, Phoenix Insurance and Continental Insurance.

Beximco Pharmaceuticals traded the most, followed by Square Pharmaceuticals, Eastern Insurance, Nitol Insurance and Asia Insurance.

Of the 354 companies traded, 124 advanced, 134 declined and 86 remained unchanged.

Kattali Textile shed the most, losing 10.47 per cent, followed by Golden Son, Square Pharmaceuticals, Envoy Textile and Delta Spinners.

The Chattogram Stock Exchange also declined. The broader CSEX index dropped 33 points, or 0.39 per cent, to 8,317.36.

Of the total 234 companies listed with the port city bourse, 77 rose, 99 fell, and 58 remained unchanged.

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