SEC halts Envoy Textiles’ public subscription

The securities regulator Sunday postponed the public subscription of Envoy Textiles for the time being, considering the present situation where investors are ‘concerned’ about new IPOs due to declining trend in the market.

The decision was taken at an urgent meeting, chaired by the Securities and Exchange Commission (SEC) Chairman Professor M Khairul Hossain.

The SEC Executive Director and its spokesperson Mohammad Saifur Rahman said the regulator took the decision of postponing the public subscription of Envoy Textiles following an application of the company.

The SEC approved the IPO (initial public offering) of Envoy Textiles on July 05, 2012, and its public subscription was supposed to take place from July 29 to August 02.

Earlier, on July 10, the securities regulator also postponed the public subscription of Summit Purbanchol Power on the same ground.

Meanwhile, after adding more than 175 points in the last two sessions, the general index of the Dhaka Stock Exchange, DGEN, lost 163.81 points Sunday, as the investors went for panicked sale ahead of forthcoming monetary policy.

The market analysts said after two days’ support, the institutional investors became inactive again, while the retail investors went for panicked sale ahead of forthcoming tight monetary policy and sensing no immediate solution to the ongoing liquidity shortage.

“Speculating no tangible impact on the government-backed institutional support, the investors went for panicked sale,” commented a stock broker.

Meanwhile, a section of investors numbering 20-30 demonstrated in front of the DSE building from 2:20pm to 3pm within the police barricade in protest against the free fall in share prices.

They also chanted slogans against SEC Chairman Prof M Khairul Hossain, DSE President Rakibur Rahman, Bangladesh Bank Governor Atiur Rahman, Finance Minister AMA Muhith and Salman F Rahman.

The day’s session started with heavy sale pressure, which continued until the end of the session with no sign of reversal and finally ended 163 points lower.

The benchmark general index of the Dhaka Stock Exchange, DGEN plunged 163.81 points or 3.93 per cent to close at 4,001.14.

The broader All Shares Price Index (DSI) went down 142.38 points or 4.02 per cent to 3,391.14. The DSE-20 Index comprising blue chips also lost 72.03 points or 2.17 per cent to close at 3,244.31.

Mr Akter H Sannamat, managing director and chief executive officer of Union Capital, said the market gained in the last two sessions thanks to institutional support. But, the institutions again became inactive which put negative impact on the market.

Source: The Financial Express, 16 July 2012