Dhaka Stock Exchange (DSE)
Shakib’s company involved in share manipulation, DSE investigation finds
Dhaka Stock Exchange (DSE) has found evidence of share manipulation by a company whose chairman is cricketer Shakib Al Hasan.
An investigation report of DSE has highlighted how the manipulation happened. The investigation shows that Kazi Sadia Hasan, Managing Director of Monarch Holdings, was involved in share market manipulation. Shakib is the chairman of the company.
During this incident, the capital market regulatory body Bangladesh Securities and Exchange Commission (BSEC) fined Abul Khair Hero and others of the group Tk 3.55 crore. Orders have also been issued by BSEC for recovery of the penalty amount. Of this, Tk 3 crore was fined for One Bank share manipulation and the remaining was fined for BDcom share manipulation.
Read: Shakib cancels contract with Betwinner News after BCB warning
A DSE report has revealed that 11 individuals and institutions were involved in trading significant amount of One Bank shares during the major rise in the bank's share price.
Those involved include Abul Khair Hero, his wife Kazi Sadia Hasan, father Abul Kalam Matbar, and sister Kanika Afroz. Its beneficiary firms are Candlestone Investments Partners and star cricketer Shakib Al Hasan. Three listed companies in the stock market are Genex Infosys, Fortune Shoes, and Sonali Paper and Board Mills.
Hero reportedly supervised trading shares in the names of Shakib Al Hasan, Genex Infosys, Fortune Shoes, and Sonali Paper.
According to the investigation report of DSE, from November 15 to 30 last year, the share price of One Bank increased from Tk 12.60 to Tk 20.10, a percentage increase of 59.62 percent.
DSE investigations revealed that Kazi Sadia Hassan, wife of Abul Khair Hero (client code # 3898 of the UCB Stock Brokerage Limited) was the top buyer of One Bank shares during the period.
DSE cracks whip on Modern Securities
The Dhaka Stock Exchange (DSE) has cracked the whip on Modern Securities Limited, having found a deficit of Tk 7 crore in the consolidated customers’ account of the brokerage firm.
The DSE has now given Modern Securities three working days to return the money to their customers' account, also seeking an explanation from the firm's top honchos on the discrepancy within a week.
Read: Investors lose Tk 10,261 crore at DSE in one week
The DSE's action followed an investigation in the wake of allegations against the brokerage house.
A DSE team, led by Shafiqul Islam Bhuiyan, head and deputy general manager of DSE's monitoring and compliance department, visited the brokerage house on February 9.
Earlier too, at least three brokerage firms -- Banco, Crest and Tamha Securities -- were caught indulging in the same violation.
Stock markets continue to fall on the third day Tuesday
The benchmark index of Dhaka stock Exchange (DSE) fell for the third consecutive days on Tuesday.
The investors preferred remaining on the sideline like the previous couple of days as the DSEX fell by 43.68 points or 0.62 per cent to settle at 6954.35 on Tuesday. The share and unit price of majority of companies decreased.
The shares of 376 companies were traded on the day, of which 201 firms saw a fall in prices, 147 firms witnessed increase and 28 companies remained unchanged.
Read: Coronavirus: Volatile share market braces for impact
Among other DSE indices, the shariah-based DSES fell by 6.28 points or 0.42 per cent and the blue chip DSE-30to 19.76 points or 0.75 per cent. Over Tk 1293 crore was traded on DSE on the day. The trade volume was Tk 1,275 crore in the previous day.
Prime Textiles topped the gainers' list that rose 22 per cent followed by Evince Textiles, Far Chemical, Ring Shine Textiles, and Delta Spinners.
Stocks of Beximco Ltd traded mostly that worth Tk 124 crore followed by IFIC Bank, Alif Industries, Maksons Spinning, and Orion Pharmaceuticals.
Safko Spinning shed mostly with a 6.45 per cent drop followed by Mithun Knitting, Maksons Spinning, Bangladesh National Insurance, and Orion Pharmaceuticals.
The Chattogram bourse also fell today. The CASPI, the main index of the Chittagong Stock Exchange (CSE), dropped 134 points, or 0.65 per cent, to 20,404.
Among 289 stocks traded, 116 rose, 150 fell and 23 remained unchanged.
Stock market reforms to fail if rumours rule the roost: Minister
Mentioning that any move to shore up the country’s capital market cannot succeed in the face of rumormongering, Finance minister AHM Mustafa Kamal on Thursday said the government will take all necessary policies to strengthen the market as soon as possible.