Dhaka stocks slump lowest in 11 months (Bangladesh)

UCBL postpones AGMs Staff Correspondent

Dhaka stocks took a plunge Monday with its general index dropping to 2618.95 points, the lowest since September 30 last year, mainly due to ex-dividend price adjustment of the shares of Square Pharmaceuticals Ltd, said market operators. The general index of the Dhaka Stock Exchange lost 56.12 points or 2.10 per cent, while its blue chips index, DSE20, shed 133.57 points or 5.39 per cent to finish at 2345.97. On September 30, the DSE general index was at 2548.18. A DSE official said price indices were adjusted due to price adjustment of the Square Pharmaceuticals shares after corporate benefits. The market also suffered selling pressure from investors, dampened by a long-standing bear run in the stock market. Market experts said a nine-week depression ate away at investors’ confidence, making them jumpy and visibly thin at the market. Share trading at the DSE and the Chittagong Stock Exchange resumed on Monday after a three-day closure. The bourses remained closed on Sunday, a public holiday to celebrate the Shab-e-Barat, preceded by the weekend – Friday and Saturday. Of the total 216 issues traded at the DSE on Monday, 50 advanced, 159 declined and seven remained unchanged. Square Pharmaceuticals, a blue-chip issue, lost 27.95 per cent to close at Tk 2788 on Monday. The pharmaceutical major, however, was the third biggest turnover leader of the day with a total transaction of Tk 15.33 crore. Turnover at the DSE, however, marginally increased to Tk 185.83 crore from the Thursday’s Tk 181.97 crore. Beximco Pharmaceuticals topped the turnover leaders with a total transaction of Tk 20.80 crore. Titas Gas Transmission and Distribution Company, Keya Cosmetics, Beximco, Islami Bank, ACI, Agni Systems, Uttara Bank and BATBC were also among the top ten turnover leaders. The CSE selective categories index lost 39.23 points or 0.73 per cent to close at 5340.92, while its blue chips index, CSE30, shed 33.50 points or 0.44 per cent to finish at 7507.56. Of the total 129 issues traded at the CSE, 32 posted gains, 93 dropped and four remained unchanged. Turnover at the CSE decreased to Tk 26.61 crore from the Thursday’s Tk 29.01 crore. On Monday, the United Commercial Bank Ltd informed the bourses that the 20th, 21st and 22nd annual general meetings of the bank that were slated for August 17 could not be held as per an injunction passed by the Appellate Division of the Supreme Court on August 14 ‘restraining’ holding of the AGMs, reported DSE official website. As the second agenda of the planned 23rd AGM—approval of stock dividend—is related to the second agenda of the 22nd AGM, holding and conducting of 23rd AGM has become impossible due to the injunction on 20th, 21st and 22nd AGMs, and hence the 23rd AGM of the bank has also been postponed, the bank informed. The DSE and the CSE have kept trading of UCBL shares halted since August 7.