Stocks fall despite cash pumps

Stocks slumped yet again as panic sell-offs marked the trading session yesterday, while institutional investors remained inactive despite investments from the Investment Corporation of Bangladesh (ICB).

The benchmark general index of Dhaka Stock Exchange slumped 73 points, or 1.23 percent, to close at 5,899 points, while the selective categories index of Chittagong Stock Exchange lost 137 points, or 1.27 percent, to close at 10,593.

Khairul Hossain, chairman of ICB, said, "Market dropped as some big institutional investors adopted a wait-and-see policy."

The ICB will go for big buying of shares from the next week, he added.

Meanwhile, the Bangladesh Fund has begun pumping money into the sagging stockmarket with the purchase of a lot of 50 shares of government-run Titas Gas.

Md Fayekuzzaman, managing director of the ICB, said, "This fund will play a good role to keep the market steady." "We will buy good shares with sound fundamentals," he said.

Banks lost 0.42 percent yesterday, while non-banks 1.63 percent, telecommunication 0.64 percent, pharmaceuticals 1.56 percent, and fuel and power 1.44 percent.

Source: The Daily Star (May 5, 2011)

CSE okays MI Cement listing

Chittagong Stock Exchange yesterday approved the listing of MI Cement as per the directives of the Securities and Exchange Commission although the Dhaka bourse did not give the approval to the company.

Fakhor Uddin Ali Ahmed, CSE president, said, "We approved the listing of MI Cement by following the directives of the SEC. The company's share trading will start on Sunday."

Muktar Hossain Talukder, chief finance officer of MI Cement, said: "The CSE has approved our listing process by following our conditions."

However, Dhaka bourse on Tuesday requested the SEC to ask the company to return the initial public offering money to investors.

Earlier, MI Cement proposed that sponsor directors compensate the investors if its share prices go below the offer price within the first six months of trading.

As per the data available with the Dhaka bourse, earnings per share of the company is Tk 93.87 and net asset value is Tk 37.01 per share as of June 2009.

Source: The Daily Star (May 5, 2011)