GP drags down stock markets
Grameenphone, the largest listed company on the Dhaka Stock Exchnage, fell 2.2 percent yesterday, a day after the Bangladesh Telecommunication Regulatory Commission declared it a Significant Market Power (SMP) operator.
The SMP is a regulation that imposes restrictions on an operator once it corners 40 percent of the subscribers, revenues and spectrum. The declaration might lead to additional charges for Grameenphone alongside regular taxes for customer acquisition, in a development that can shake up the country's mobile telephony landscape.
Grameenphone's dominance will be eroded following the telecom watchdog's declaration, said UCB Capital Management in its daily market commentary. “So, the stocks fell by 2.2 percent following the news,” it said.
Some other large-cap companies also fell yesterday, pulling down the index. Among the top-traded stocks, United Power Generation & Distribution Company fell 7.4 percent and Square Pharmaceuticals 1 percent.
DSEX, the premier bourse's benchmark index, declined 29.82 points, or 0.51 percent, to finish the day at 5,733.91.
Renata, Grameenphone and Brac Bank are the top three contributors to the slide, according to IDLC Securities.
Turnover, another important indicator of the market, also dropped 11.52 percent to Tk 719.13 crore, with 16.21 crore shares and mutual fund units changing hands on the DSE.
Telecom, cement, fuel and power sectors pushed down the index to the red zone even though most of the stocks closed in the green, UCB Capital Management said.
Among the major sectors, telecommunication and pharmaceuticals fell 2 percent and 1.3 percent respectively, while engineering increased 0.1 percent. Of the traded issues, 155 advanced, 151 declined and 39 closed unchanged.
United Power Generation & Distribution Company dominated the turnover chart with its transactions of 10.36 lakh shares worth Tk 42.62 crore, followed by Monno Ceramic Industries, Doreen Power Generations and Systems, Fortune Shoes and Provati Insurance Company.
Eastland Insurance Company was the day's best performer with its 10 percent gain, while IPDC was the worst loser with its 8.68 percent slump.
Chittagong stocks also fell with the bourse's benchmark index, CSCX, declining 11.19 points, or 0.10 percent, to finish the day at 10,634.86.
Gainers beat losers as 125 advanced, 110 declined and 28 finished unchanged on the Chittagong Stock Exchange. The port city bourse traded 78.36 lakh shares and mutual fund units worth Tk 21.55 crore.