Stocks surge on HC order
Dhaka, May 21 (UNB) – The High Court order upholding the SEC’s directive pushed up stocks at both the bourses – Dhaka and Chittagong – on Monday that hovered over the negative territory for the fourth straight trading session.
The investors that stayed away from fresh investment due to delay in getting the outcome on writ petitions over minimum shareholding over the last few days, became active again resulting in increased turnover in the twin bourses.
Dhaka Stock Exchange (DSE) benchmark index, DGEN, showed a gain of 50.50 points or 1.01 percent to close at 5022.95 today.
The premier bourse lost over 80 points in the last four trading sessions since Tuesday.
The DSE turnover made a big jump posting Tk 477 crore against Tk 278 crore recorded on Sunday. The DSE turnover was Tk 265 crore on Thursday while it was Tk 349 crore on Wednesday. The premier bourse recorded Tk 433 crore and Tk 348 crore turnovers respectively on Tuesday and Monday last week.
Of the issues traded at the DSE, 178 gained, 65 suffered losses and 16 remained unchanged.
“After the long wait, the cloud over writ petitions on minimum shareholding was cleared as the court verdict came in favour of the SEC. On the anticipation for the same, today’s session started with a buying mood and DGEN gained 88 points within the first hour of trading,” IDLC Investments Limited said in its daily analysis.
It said the news of the verdict came from the court and DGEN got fueled by 96 points on ‘impulse trading’ within the next 5-10 minutes.
Besides, Chittagong Stock Exchange (CSE) key index, CSCX, gained 86.66 points to close at 9495.35.
The port city bourse shed 31.38 points and 4.49 points respectively on Sunday and Thursday while 27.57 points on Wednesday. The bourse lost another 81.33 points on Tuesday.
The port city bourse turnover saw a sharp rise posting Tk 93 crore against Tk 45.62 crore and Tk 73.36 crore recorded on Sunday and Thursday respectively. The turnover was Tk 47.23 crore on Wednesday while it was Tk 53.99 crore on Tuesday.
At the CSE, 144 gained, 22 suffered losses and 14 remained unchanged at the end of the day’s trading.
Court Verdict
The High Court on Monday declared the circular of the Securities and Exchange Commission on holding minimum two percent shares of the listed companies individually by their sponsor-directors legal.
A bench comprising justice Farid Ahmed and justice Sheikh Arif delivered the verdict at noon.
The court also rejected four petitions filed by directors of some companies challenging the SEC circular.
On November 22, 2011, the Securities and Exchange Commission had made it compulsory for sponsors, directors and promoters of listed companies to hold at least 2 percent stakes individually in their own companies.
The SEC set a six-month deadline that expires on May 22 for the directors to buy stocks from the market.
The High Court on May 7 asked the stock market regulator to explain within two weeks why a directive for directors to hold individually at least 2 percent stakes in companies should not be declared illegal.
The HC rule came after a writ petition was filed by Abul Bashar, a director of Popular Life Insurance Company.
Earlier, on April 8, the HC asked regulators to explain why the SEC directive on minimum shareholding should not be declared illegal after a writ petition filed by Sheikh Abdul Momen, husband of the late Masuda Begum, a sponsor of NCC Bank Ltd.
The investors that stayed away from fresh investment due to delay in getting the outcome on writ petitions over minimum shareholding over the last few days, became active again resulting in increased turnover in the twin bourses.
Dhaka Stock Exchange (DSE) benchmark index, DGEN, showed a gain of 50.50 points or 1.01 percent to close at 5022.95 today.
The premier bourse lost over 80 points in the last four trading sessions since Tuesday.
The DSE turnover made a big jump posting Tk 477 crore against Tk 278 crore recorded on Sunday. The DSE turnover was Tk 265 crore on Thursday while it was Tk 349 crore on Wednesday. The premier bourse recorded Tk 433 crore and Tk 348 crore turnovers respectively on Tuesday and Monday last week.
Of the issues traded at the DSE, 178 gained, 65 suffered losses and 16 remained unchanged.
“After the long wait, the cloud over writ petitions on minimum shareholding was cleared as the court verdict came in favour of the SEC. On the anticipation for the same, today’s session started with a buying mood and DGEN gained 88 points within the first hour of trading,” IDLC Investments Limited said in its daily analysis.
It said the news of the verdict came from the court and DGEN got fueled by 96 points on ‘impulse trading’ within the next 5-10 minutes.
Besides, Chittagong Stock Exchange (CSE) key index, CSCX, gained 86.66 points to close at 9495.35.
The port city bourse shed 31.38 points and 4.49 points respectively on Sunday and Thursday while 27.57 points on Wednesday. The bourse lost another 81.33 points on Tuesday.
The port city bourse turnover saw a sharp rise posting Tk 93 crore against Tk 45.62 crore and Tk 73.36 crore recorded on Sunday and Thursday respectively. The turnover was Tk 47.23 crore on Wednesday while it was Tk 53.99 crore on Tuesday.
At the CSE, 144 gained, 22 suffered losses and 14 remained unchanged at the end of the day’s trading.
Court Verdict
The High Court on Monday declared the circular of the Securities and Exchange Commission on holding minimum two percent shares of the listed companies individually by their sponsor-directors legal.
A bench comprising justice Farid Ahmed and justice Sheikh Arif delivered the verdict at noon.
The court also rejected four petitions filed by directors of some companies challenging the SEC circular.
On November 22, 2011, the Securities and Exchange Commission had made it compulsory for sponsors, directors and promoters of listed companies to hold at least 2 percent stakes individually in their own companies.
The SEC set a six-month deadline that expires on May 22 for the directors to buy stocks from the market.
The High Court on May 7 asked the stock market regulator to explain within two weeks why a directive for directors to hold individually at least 2 percent stakes in companies should not be declared illegal.
The HC rule came after a writ petition was filed by Abul Bashar, a director of Popular Life Insurance Company.
Earlier, on April 8, the HC asked regulators to explain why the SEC directive on minimum shareholding should not be declared illegal after a writ petition filed by Sheikh Abdul Momen, husband of the late Masuda Begum, a sponsor of NCC Bank Ltd.
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