Beximco shares plunge 61 percent in two weeks as buyers vanish after floor price removal

The stock closes at Tk 42.90, extending a sharp slide that leaves it among the market’s worst performers

Beximco’s share price has tumbled nearly 61 percent in just two weeks since the removal of the floor price, as a severe shortage of buyers continued to weigh on one of the country’s most closely watched stocks.

The stock changed hands in both the main and block markets on Sunday and ranked as the second-biggest loser on the Dhaka Stock Exchange (DSE).

Since the Bangladesh Securities and Exchange Commission (BSEC) lifted the floor price -- the regulator-set minimum trading price -- on Jun 9, Beximco has repeatedly hit, or come close to, the maximum daily circuit-breaker limit of 10 percent.

The market has remained open for 11 trading sessions since then, and the stock was left without buyers on most of those days.

On Sunday, Beximco fell by Tk 4.70 from the previous session to close at Tk 42.90, down from Tk 47.60 a day earlier.

After several sessions with virtually no buyers, shares worth Tk 3.26 million were traded in the main market on Sunday.

In the block market, however, transactions totalled Tk 35.99 million. A total of 838,875 shares changed hands at prices ranging from Tk 42.90 to Tk 43.

Lowest Turnover in 11 Sessions

More than three and a half months after the BNP secured a landslide victory in the election and formed the government, seasoned corporate professional Masud Khan was appointed chairman of the BSEC.

Since his appointment, daily turnover on the DSE has not fallen below Tk 10 billion.

The day after he assumed office, share transactions reached Tk 15.29 billion -- the highest figure recorded over the past 11 sessions.

During seven of those sessions, turnover ranged between Tk 12 billion and Tk 15.29 billion.

In the remaining four days, it stayed below Tk 12 billion but remained above the Tk 10 billion mark.

Sunday recorded the lowest turnover during the period, with shares worth Tk 10.02 billion traded, compared with Tk 11.97 billion in the previous session.

Although the benchmark index rose during the first two hours of trading, sentiment reversed after noon and remained negative until the close.

The DSE index fell 21.48 points to 5,639.89. Of 396 traded securities, 71 gained, 298 lost and 27 remained unchanged. Pharmaceuticals and chemicals, engineering, and textiles led trading activity.

Prime Finance First Mutual Fund, Simtex Industries and KDS Accessories posted the highest gains, while Meghna PET topped the losers’ list, followed by Regent Textile Mills.