Stocks plunge as no headway in BB-BSEC row

Shares on the Dhaka Stock Exchange plunged yesterday, ending a five-session gaining streak after shaky investors booked profit as little headway was made to resolve the dispute between the Bangladesh Securities and Exchange Commission (BSEC) and the central bank.

The DSEX, the benchmark index of the premier bourse of the country, ended at 6,952 after losing 96.85 points, or 1.37 per cent.

Turnover stood at Tk 1,152 crore, down 13.45 per cent from Tk 1,331 crore a day earlier. Of the total issues, 97 advanced, 257 declined, and 20 were unchanged. 

Heavy sell pressure had been observed in the large market cap sectors such as financial institutions, miscellaneous, textile and banking during the session. It came despite a meeting between a number of regulators at the finance ministry on Tuesday. 

Senior officials of the central bank, the BSEC, the Investment Corporation of Bangladesh, and the National Board of Revenue were unanimous in working to develop the stock market. But no major decisions about ending the current tussle between the BSEC and the Bangladesh Bank came.

The delay made the investors shaky in putting fresh bets in the stocks, said International Leasing Securities said in its daily market review.

At the heart of the disputes is two recent decisions from the BSEC.

Recently, the commission has ordered all the listed companies, including banks and non-bank financial institutions to deposit their undistributed dividend to the stock market stabilisation fund.

It also allowed banks and NBFIs to declare dividend from the current year's profits despite having cumulative losses. But, the central bank ordered them not to follow the BSEC order.

Last week, senior officials of the BB and the BSEC sat at a meeting at the central bank. But no progress was made.

Fine Foods Ltd gained the most yesterday, advancing 9.87 per cent. Fu Wang Food, Shurwid Industries, FAS Finance & Investment, and Desh Garments also rose significantly.

Dulamia Cotton Spinning Mills was the worst-performing stock on the day, giving up 7.38 per cent. Other major losers include Aramit Cement, Aamra Networks, One Bank, Sena Kalyan Insurance, and Phoenix Finance & Investments.

Shares on the Chittagong Stock Exchange also fell. The CASPI, the key index, closed at 20,359, down 250.99 points, or 1.21 per cent.

Of the companies, 82 won, 184 lost, and 23 were unchanged.