Dhaka bourse asked to list MI Cement

Dhaka, May 9: The Securities and Exchange Commission (SEC) has issued a circular for a second time to the Dhaka Stock Exchange (DSE) to allow a listing for MI Cement Factory Ltd.

The DSE did not comply with the first circular that asked it to list the company, as the conditions of compensation would create complexities and contradict the securities law, said a DSE official.

However, the Chittagong Stock Exchange (CSE) approved the listing in a condition of compensation and the company made a trade debut yesterday.

"We will take action against DSE, if they do not follow our circular," said an official of SEC.

The DSE should list the company as the CSE has already done so, he adds.

DSE sent a letter on May 3 to the SEC, explaining 11 points of negative impact of compensation on the market.

In line with the letter: "The introduction of the concept of compensation for the equity mark shall be nothing but risky. There is no such instant compensation for the capital market in the world. The compensation goes against the basic concept of equity investments. The matter of compensation means the primary issue price of the share is not justified."

"Some investors will use the chance to manipulate MI Cement share prices as they will sell shares too close once to get compensation, while the compensation will involve the investor for circular trading." But, the SEC rejected it and issued a circular to list the company to the bourses.

In another development, SEC has increased the listing period of MJL Bangladesh Ltd to end the listing stalemate.

Source: The Daily Star (May 9, 2011)

Investors protest stocks plunge

Dhaka, May 9: Investors once again demonstrated in front of Dhaka Stock Exchange as share prices marked a sharp fall yesterday despite cash-pumps from the Bangladesh Fund.

The benchmark index of DSE slumped 287 points, or 4.88 percent, to close at 5,611 points, while the selective price index of Chittagong Stock Exchange lost 477 points, or 4.50 percent, to close at 10,115.

The investors took to the streets shortly after 1pm when the premier bourse lost over 200 points. Angry investors chanted slogans against the government and demanded taking necessary steps to bring back normalcy in the market.

Some of them carried placards that read: "Shoot us or stabilise the market."

Investors have given ultimatum of three days to bring back normalcy to the market.

Arif Khan, chief executive officer of Zenith Investment, said, "Investors started selling shares as they lacked confidence."

"Most of the institutional investors faced credit crunch and failed to buy shares. The uncertainty over restructuring the SEC also created a panic."

Of the total 248 issues traded on the DSE, one advanced, 244 declined and three remained unchanged.

Source: The Daily Star (May 9, 2011)