Stocks tumble on SEC move

Dhaka stocks suffered a big jolt yesterday due mainly to the regulator's price curbing measures that were announced on Tuesday.
The benchmark index of the Dhaka Stock Exchange -- DSE General Index (DGEN) -- tumbled down by nearly 2 percent, or 128.35 points, to 6,649.6. It is the biggest single-day fall in the last one month.
The Securities and Exchange Commission (SEC) on Tuesday directed the merchant bankers and brokerages to follow a 'net asset value' (NAV) based calculation in providing credit for share purchases as well as loan maintenance. The SEC also asked them to implement the latest measures within September 30 this year.
The market nosedived in the morning on panic-sale and lost around 130 points. It recovered almost half of the losing points in the next one hour, but dipped again in the last hour.
"Being panicked by the SEC move, the investors, especially the retailers, sold their holdings in the morning, sending the market into tailspin," said a merchant banker.
Big individuals, however, were calm.
Md Zazimuddin, an individual investor, said he traded only 10 percent to 15 percent that he usually does. "I was watching and observing the market trend."
Stocks fell across the board as the share prices of almost 80 percent issues declined under the insurers, non-banking financial institutions (NBFIs), and fuel and power sector.
Banks and telecom edged up.
Losers outnumbered gainers 184 to 60, and seven securities remained unchanged on the premier bourse.
Trading volume was on the lower side with more than 7.95 crore shares and mutual fund units being traded on a value of Tk 1,685 crore, down by around 13 percent over the previous session.
Beximco Ltd, the flagship company of industrial conglomerate Beximco Group, topped the turnover leaders with more than 31.64 lakh shares worth Tk 99.20 crore changing hands.
Chittagong stocks also marked a sharp fall with the CSE Selective Categories Index plummeting by 226.78 points, or 1.74 percent, to 12,741.15.
The Chittagong Stock Exchange traded more than 1.04 crore shares and mutual fund units on a turnover of Tk 147.66 crore.
Losers beat advancers 153 to 33, and five securities stayed unchanged on the port city bourse.
Beximco Ltd topped the turnover leaders with more than 3.28 lakh shares worth Tk 10.42 crore being traded.