Stocks slump as investors wait for Jamuna, Meghna shares

Dhaka and Chittagong stocks slumped yesterday, as investors are now waiting to buy shares in state-run Jamuna Oil and Meghna Petroleum, which will make their debut on January 9 and 14 respectively.
The DSE General Index dropped by 50.16 points, or 1.68 percent, ending the day at 2929.32 points, while the DSE All Share Price Index dipped by 40.02 points, or 1.59 percent, finishing at 2468.1 points.
Of the issues traded on the Dhaka Stock Exchange (DSE), 40 advanced and 175 declined with 17 unchanged. A total of 5,462,296 shares and bonds worth Tk 110.24 crore were traded.
The CSE Selective Categories Index went down by 82.65 points, or 1.7 percent, to close at 4773.78 points, while the CSE All Share Price Index fell by 121.49 points, or 1.6 percent, to finish at 7445.88 points.
Of the issues traded on the Chittagong Stock Exchange (CSE), 14 advanced and 91 declined with five unchanged. A total 1,175,494 shares and bonds worth Tk 16.15 crore changed hands.
"The investors were in a selling mood during the last couple of trading days, as they are saving money to invest on Jamuna and Meghna securities," said a broker.
There is a huge demand for new quality shares, especially the government ones, in the market, he said.
The stock market witnessed such a downtrend when another two state-owned power companies, Dhaka Electric Supply Company and Power Grid Company of Bangladesh, made their debut on the stock exchanges in 2006, market insiders said.
Jamuna will release 13.50 lakh shares worth Tk 13.50 crore, while Meghna will release 12 lakh shares worth Tk 12 crore. The face value of each share has been fixed at Tk 10. The shares to be offloaded through direct listing rules with Dhaka and Chittagong stock exchanges amount to 30 percent of the two companies' paid-up capital.
The initiative is a part of the government's broader goal to corporatise state-owned entities in an effort to increase their efficiency.