Staff Correspondent
The Securities and Exchange Commission on Tuesday halted trading of shares of 13 companies on the Dhaka Stock Exchange because of abnormal rise in prices of the securities.
The general index of the bourse, however, bounced back on the day following the halt of the trading of the non-marginable and low profile securities as investors went for a buying spree of marginable issues.
Marginable issues witnessed a sharp fall on Monday after the SEC squeezed credit facilities for the investors.
As per the SEC directive, the DSE authorities halted the trading of the shares of Sonali Aansh, Mithun Knitting, Tallu Spinning, CMC Kamal, Saffko Spinning, Miracle Industries, Standard Ceramic, Aziz Pipes, Bangladesh Autocars, United Airways, Desh Garments, Dacca Dyeing and Ambee Pharmaceuticals at 11:30am on Tuesday after the market opened at 11:00am.
After the trading began on Tuesday, the prices of these securities, which had witnessed abnormal rise in last few days, jumped by around 10-20 per cent but the general index tumbled in early minutes because of heavy fall of prices of other issues.
The market began to rebound after the DSE halted the trading of the 13 issues till further notice.
The benchmark general index of Dhaka Stock Exchange advanced by 33.76 points, or 0.40 per cent, to close the day at 8,554.22 points. The index had lost 77.11 points on Monday, ending a six-day record-breaking surge, after the SEC squeezed share market credit.
The SEC, in a move to cool down the overheated market, decided on Sunday that investors from now on would get margin loans at the ratio of 1:0.5 instead of 1:1.
The DSE general index had risen by 650.37 points between November 1 and 21.
DSE president Shakil Rizvi said the price of non-marginable securities increased significantly on Tuesday. ‘We had to halt trading of the shares of 13 companies temporarily to check abnormal rise in prices of shares of the low profile issues.’
He said investors turned to marginable securities after the bourse had halted the trading of the shares of the non-marginable companies.
Akter H Sannamat, managing director of Prime Finance and Investment, a leading financial institute, said most of the investors began to offload high profile shares in the early minutes of trading as they predicted that most of marginable securities would fall further due to the new margin loan ratio set by the SEC.
‘But, when the DSE halted trading of the shares of 13 non-marginable companies for unusual price hike in their shares, investors began to buy shares of high profile securities,’ he said.
Of the total 248 issues traded on the DSE, 146 advanced, 99 declined, and three remained unchanged.
The daily turnover on the bourse was Tk 2,736.07 crore, down by Tk 9.64 crore from the previous trading day.
Beximco topped the turnover leaders with 26.77 lakh shares valued at Tk 90.18 crore traded on the day.
The rest of the turnover leaders were Peoples Leasing and Financial Services, United Commercial Bank, Square Textile, RN Spinning, Bextex, NCC Bank, Shahjalal Islami Bank and Pubali Bank.
Active Fine Chemicals was the day’s biggest gainer, posting a 24.16-per cent rise in its share prices while Kohinoor Chemicals was the worst loser.
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