Grameenphone share price drops to drag Bangladesh stock market down

A drop in prices of Grameenphone shares, which account for 11 percent of Dhaka Stock Exchange market share, has dragged down the key index.

Some small investors, agitated at continuous fall in share prices, staged a human-chain demonstration outside Dhaka Stock Exchange in Dhaka's Motijheel on Monday. Some small investors, agitated at continuous fall in share prices, staged a human-chain demonstration outside Dhaka Stock Exchange in Dhaka's Motijheel on Monday.

DSEX dropped to a two-and-a-half-year low of 5091.48, losing 88.01 points or 1.69 percent, on Monday.

The index dropped to 5083 for the last time on Jan 1, 2017.

On Monday, turnover also dropped to Tk 3 billion from Sunday’s Tk 3.54 billion in the prime bourse while CASPI in Chittagong Stock Exchange lost 1.64 percent to 15619.57.

In Dhaka, Grameenphone shares started trading at Tk 344.7 but at the end of the day the price stood at Tk 324.5.

DSE Brokers Association President Shakil Rizvi blamed the drop in Grameephone’s second quarter (April-June) earnings per share or EPS by over 8 percent for the slump in the market.

Grameenphone EPS was Tk 7.07 in the second quarter this year against Tk 7.7 in the same period last year. GP EPS, however, was Tk 13.37 in January-June period against Tk 12.10 of the same period last year. 

“GP was dropping for some days. It dropped further on Monday after the news of drop in profit came,” he said.

“Grameenphone share price has a great effect on our share market. The index drops hugely if this share price drops. The index and gains when GP share gains,” Shakil said.   

The Grameenphone share price drop coupled with liquidity crisis drove the index down, Shanta Asset Management Limited CEO Mohammad Emran Hasan said.

“And there is no news that can make the market turn around,” he said.

Grameenphone shares hit the highest price of Tk 510 in February, 2018, but gradually dropped to Tk 410 in January this year and continued the loss.