Panic sales push DSE to 3-month low
Dhaka stocks hit a three-month low yesterday as investors went for a sell-off after panicking on a recent government stance on leading telecom operator Grameenphone and a rumour involving stock investors.
The government's order for Grameenphone to clear Tk 12,579.95 crore of its dues came at a time when rumours spread that every stock investor should have tax identification number (TIN) from now on.
Actually the news was baseless, said Khairul Bashar Abu Taher Mohammed, secretary general of Bangladesh Merchant Bankers' Association.
The share price of Grameenphone fell sharply when the government through a notice on Tuesday gave the leading operator two weeks' time to clear the dues, he said. “The order on GP's dues left a heavy impact on the whole market,” said Bashar, who is also the CEO of MTB Capital.
Grameenphone alone snatched 22.26 points from the benchmark index of the Dhaka bourse yesterday causing the DSEX to fall 1.26 percent or 69.97 points to finish the day at 5,452.19, according to the DSE data.
A top Dhaka Stock Exchange (DSE) official echoed Bashar's views, saying that the National Board of Revenue in a pre-budget meeting on Tuesday did not urge the bourses to keep TINs from investors.
“Rather the NBR just wanted to know whether it is compulsory now to maintain TINs for stock investors.”
The tax administrator actually ordered the insurance sector leaders to ensure that all their policy holders maintain TINs from now on.
However, the DSE's turnover, another important indicator, increased 9.53 percent to Tk 451.36 crore with 8.38 crore shares and mutual fund units changing hands on the premier bourse. Of the traded issues, 54 advanced, 264 declined and 28 closed unchanged on the DSE.
United Power Generation dominated the turnover chart with 13.73 lakh shares worth Tk 54.77 crore changing hands, followed by British American Tobacco Bangladesh, Grameenphone, Monno Ceramics and Bangladesh Submarine Cables. United Insurance was the day's best performer with a 9.90 percent gain while United Power Generation was the worst loser, shedding by 7.10 percent.
Chattogram stocks closed low with the bourse's benchmark index, the CSCX, declining 118.90 points or 1.15 percent to finish the day at 10,133.89.
Losers beat gainers as 168 declined, 52 advanced and 16 finished unchanged on Chittagong Stock Exchange.
The port city bourse traded 45.28 lakh shares and mutual fund units worth Tk 78.45 crore.