ICB, Berger, Walton bleed on share offload order

Stock prices of the Investment Corporation of Bangladesh (ICB), Walton Hi-tech Industries Limited, and Berger Paints Bangladesh Limited shed the most in the market yesterday after news broke that all three were asked to offload at least 10 per cent of their shares.

The ICB plunged 8.6 per cent, Walton 6.2 per cent and Berger 6.1 per cent, shows data from the Dhaka Stock Exchange (DSE).

Their combined fall cost the DSEX, the benchmark index of the DSE, 20 points, according to amarstock.com.

After offloading the shares, all three would have a higher supply of stocks in the market, leading to lower prices.

"So, the share price of these stocks fell," said a top official of a merchant bank.

However, the decision by the Bangladesh Securities and Exchange Commission (BSEC) to have these companies offload shares was a great one as it will allow more people to buy a stake, he added.

The BSEC ordered the three listed companies to offload more shares in order to comply with public issue rules.

According to public issue rules, a company needs to offload at least 10 per cent of its total shares to general investors.

However, the Walton issued 0.97 per cent of shares, the ICB 3.19 per cent and the Berger 5 per cent to investors, as per DSE data.

Meanwhile, the stock market climbed yesterday just a day after investors went for profit booking in hopes that the rising trend would continue.

The DSEX surged 15 points, or 0.22 per cent, to 7,218.

Although investors booked profits in the previous session, people are still optimistic about the market, said a stock broker.

However, institutional investors are in a wait-and-see approach so their participation fell, he added.

Turnover, an important indicator of the market, fell 24 per cent to Tk 2,040 crore while it was Tk 2,708 crore a day earlier.

Metro Spinning Limited topped the gainers' list, rising 9.92 per cent, followed by Monno Fabrics Limited, Meghna Condensed Milk Industries Limited, SBAC Bank Limited and Beach Hatchery Limited.

The ICB shed the most followed by the Walton, Berger, Savar Refractories Limited and Bangladesh National Insurance Company Limited.

Stocks of Beximco Limited were traded the most, worth Tk 149 crore, followed by Beximco Pharmaceuticals Limited, National Housing Finance and Investments Limited, NRB Commercial Bank Limited, and British American Tobacco Bangladesh Company Limited.

Chittagong Stock Exchange (CSE) also rose yesterday as the CASPI, the general index of the port city bourse, rose by 44 points, or 0.21 per cent, to 21,029.

Among 323 stocks to undergo trade, 164 advanced, 132 fell and 27 remained unchanged.