Stocks
Over Half of the DSE money are still trapped at floor prices
The stock market with the unusual floor price support has regained vibrancy to generate over Tk1,000 crore in turnover daily and people on the street are talking about which stock to chase right now for astounding gains.
Everything is happening providing 52pc of scrips stuck on the price floor that came into result from the last trading session of July.
Hence, the 4 October market report by the research team of brokerage firm Royal Capital Ltd, 193 of the 369 scrips in the Dhaka Stock Exchange (DSE) were stuck at the floor price – which means there were lots of sale orders amid no buyers at the lowest allowable price.
The price floor being loved by a large number of dealers, mostly retail ones, is also frustrating significant market participants, especially institutional investors, who want the market to remain free enough to find more buyers and sellers for the sake of exchangeability and a genuine price discovery mechanism.
Blue-chip shares, that are stuck on the floor, increased the agonies of serious investors as many are unable to sell large-cap stocks such as Grameenphone (GP), Square Pharmaceuticals, BRAC Bank, Renata, Singer Bangladesh, regardless of their need for cash or will to hold onto trades.
10 of the 30 blue chip companies on the DSE are hibernating on the floor having bare trades at the price level.
BAT Bangladesh, BRAC Bank, Fortune Shoes, Grameenphone,(GP), Islami Bank, LankaBangla Finance, Renata, Robi, Singer Bangladesh and Square Pharmaceuticals were the DS30 companies stuck on the floor on Tuesday.
Like many, CFA Society Bangladesh President Shaheen Iqbal in a recent capital market hosted a show, suggests that the floor price should not be in place because it was causing the price and preventing the development of the capital market.
A stock might go down and also come back to its fair level in a free environment, he said, referring to the argument that a fall in stock prices is not the end of the world.
The floor steroid, hence, worked in helping the market recover from its 14-month low at the end of July.
DSEX, the broad-based index of the DSE surged by 9.43pc to 6,544 on Tuesday, from 5,980 on 28 July 2022.
The Bangladesh Securities and Exchange Commission (BSEC) made the price floor effective from 31 July, which is not allowing any money to trade below the then price level.
Responding to the criticisms of the stock market regulator’s repeated market disruption moves, BSEC Chairman Professor Shibli Rubayat-Ul-Islam in August said that the commission was undone because of the market structure – the dominance of retail investors who needs some protection.
Floor is so strong in the investors’ psyche in the bourses of Dhaka and Chattogram that a rumor in early September that the regulator might revoke the controversial price floor triggered a massive selloff in the stock market and the market later bounced back after the top BSEC officials’ promises that the commission was not even thinking of anything like that.
Dhaka Stock Exchange DSE, Bourse on the last working day of the week, 16th May, ended with a drop in Indices and hike in Turnover from the previous working session. This information is known from DSE sources.
676 crore 79 lakh taka shares were traded on this day. 150 crore 46 lakh more tradings were done in DSE today compared to the previous workday, 15th May , Shares worth Tk 526 crores 33 lakh shares were traded last time, Wednesday.
The benchmark DSEX lost 9.98 points or 5,517 The Shariah-based index DSES dropped 0.80 points or 1,212, and the blue-chip index DS30 decreased by 3.79 points or 1,973.
Of the issues traded, 122 advanced, 215 declined and 57 remained unchanged.
MBL 1st Mutual Fund ranked top gainer on DSE, the share price increased by Tk 0.50 paisa or 10 percent. On this day, the share was last traded at Tk 5.50 paisa.
Sonali Paper & Board Mills Limited ranked top loser on the DSE, the share price dropped by Tk 11.80 paisa or 3.00 percent. On this day, the share was last traded at Tk 382.50 paisa.
DSE topped on trade is Asiatic Laboratories Limited 46 crore 23 lakh takas of company shares have been traded.
A total of 43 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 3 crore 22 lakh 1 thousand 792 shares of the companies were traded. The financial value of which is 49 crore 85 lakh taka
Dhaka Stock Exchange DSE, Bourse on the fourth working day of the week, 15th May, ended with a drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
526 crore 33 lakh taka shares were traded on this day. 138 crore 3 lakh less tradings were done in DSE today compared to the previous workday, 14th May , Shares worth Tk 664 crores 36 lakh shares were traded last time, Tuesday.
The benchmark DSEX lost 58.22 points or 5,527 The Shariah-based index DSES dropped 12.79 points or 1,212, and the blue-chip index DS30 decreased by 14.14 points or 1,977.
Of the issues traded, 61 advanced, 301 declined and 33 remained unchanged.
Reliance One the first scheme of Reliance Insurance Mutual Fund ranked top gainer on DSE, the share price increased by Tk 1.50 paisa or 8.77 percent. On this day, the share was last traded at Tk 18.60 paisa.
Bay Leasing & Investment Limited ranked top loser on the DSE, the share price dropped by Tk 0.30 paisa or 3.00 percent. On this day, the share was last traded at Tk 9.70 paisa.
DSE topped on trade is Alif Industries Limited 19 crore 21 lakh takas of company shares have been traded.
A total of 45 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 68 lakh 31 thousand 91 shares of the companies were traded. The financial value of which is 37 crore 38 lakh taka
Dhaka Stock Exchange DSE, Bourse on the third working day of the week, 14th May, ended with a drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
664 crore 36 lakh taka shares were traded on this day. 17 crore 86 lakh less tradings were done in DSE today compared to the previous workday, 9th May , Shares worth Tk 968 crores 2 lakh shares were traded last time, Monday.
The benchmark DSEX lost 81.14 points or 5,585 The Shariah-based index DSES dropped 15.76 points or 1,225, and the blue-chip index DS30 decreased by 26.04 points or 1,991.
Of the issues traded, 31 advanced, 343 declined and 25 remained unchanged.
Reliance One the first scheme of Reliance Insurance Mutual Fund ranked top gainer on DSE, the share price increased by Tk 1.50 paisa or 9.55 percent. On this day, the share was last traded at Tk 17.10 paisa.
Union Insurance Company Limited ranked top loser on the DSE, the share price dropped by Tk 4.00 paisa or 9.32 percent. On this day, the share was last traded at Tk 38.90 paisa.
DSE topped on trade is eGeneration Limited 28 crore 18 lakh takas of company shares have been traded.
A total of 45 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 74 lakh 95 thousand 900 shares of the companies were traded. The financial value of which is 34 crore 92 lakh taka
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