Dhaka stocks dropped on Wednesday after a four-day bull run as the market witnessed selling pressure after the regulator issued fresh directives to share market financiers in connection with margin loan disbursement system, market operators said.
The Securities and Exchange Commission on Tuesday directed merchant banks and brokerage houses to consider price earning ratio above allowable limit calculated on the basis of diluted earning per share on income from continuing core operations while deciding status as non-marginable securities.
The SEC also directed the Dhaka Stock Exchange to calculate margin maintenance figure based on net asset value of the listed securities as per last available annual/audited/un-audited financial statements and closing price of the last trading day of the week and disclose the same on the DSE’s web site at the end of each week which will remain effective during the following week.
In case of mutual funds, the DSE will calculate margin maintenance figure based on the latest disclosed net asset value at market price of the concerned mutual fund and the closing price of the relevant fund at the end of the week.
The SEC also decided that net asset value-based margin loan calculating system would come into effect on Sunday.
The benchmark general index of the DSE lost 65.02 points, or 0.94 per cent, to close at 6,882.12 points on Wednesday. On Tuesday, DSE general index refreshed its all-time high crossing 6,900-point mark for the first time.
Akter H Sannamat, managing director of merchant bank Prime Finance and Investment, said selling pressure pushed down the market after a record-breaking run.
The SEC’s directives for margin loan disbursement system put an impact on the market, he said.
Banks, financial institutions and mutual funds shares fell sharply on the day.
The broader DSE all shares price index declined by 48.25 points, or 0.83 per cent, to finish at 5,769.32 points.
Of the total 258 issues traded on the day, 91 advanced, 162 declined and five remained unchanged.
The day’s total turnover stood at Tk 1,777.65 crore, down by Tk 302 .2 crore from the previous day.
Square Pharmaceuticals topped the turnover leaders with more than 2.11 lakh shares valued at Tk 75.11 crore traded on the day.