Shahjibazar goes to spot market

Shahjibazar Power's share trade will be relegated to the spot market from the public market today.
This means that investors will now have to pay cash for the company's share transactions and have a settlement period of just one day.
Bangladesh Securities and Exchange Commission (BSEC) took the decision yesterday, after looking into the unusual price hike of Shahjibazar shares recently.
The power company's share prices rose 828 percent to Tk 338.8 since its listing on the stockmarket on July 15.
The BSEC also marked Shahjibazar Power stocks as non-marginable, meaning, investors cannot buy those on credit.
Additionally, all stockbrokers will have to submit daily details on the sell and buy of each Shahjibazar share to the stock exchanges, which will send the report to the regulator the following day.
On November 9, BSEC had tasked a two-member committee to report on the unusual price hike of Shahjibazar Power within 15 working days.
The BSEC had earlier found anomalies in the company's accounts and spent Tk 1.72 lakh for a new audit by A Qasem and Company Chartered Accountants.
The company had inflated net profits by Tk 11.68 crore in its financial reports, according to BSEC-appointed auditors, for which the regulator fined five directors of the company Tk 10 lakh each, and the managing director Tk 5 lakh.
Shahjibazar Power shares also faced a trade bar from August 11 to October 20 for the same reason.
The audit firm found that the power company's real net profit was Tk 16.87 crore, with real earnings per share of Tk 1.48, instead of the published numbers.
Shahjibazar raised Tk 31.7 crore from an initial public offer to pay off bank loans.
Meanwhile, stocks continued to fall for the fourth day as investors remained cautious amid corporate declarations, leading to Tk 628 crore in turnover yesterday, a 9 percent decline from the previous day.
DSEX, the benchmark general index of the DSE, closed at 4,898, after shedding 18 points or 0.37 percent.
DSES, the shariah index of the premier bourse, lost 6 points or 0.53 percent, to finish the day at 1,150 points.
Losers beat gainers 147 to 125 and 33 remained unchanged out of the 305 issues that traded on the Dhaka bourse.
A total of 1.32 lakh trades with 12.26 crore shares and mutual fund units took place on the DSE.
Chittagong Stock Exchange also declined yesterday with its selective categories index, CSCX, shedding 46 points to close at 9,243.