• Wednesday, Oct 16, 2019
  • Last Update : 03:19 am

GP stock has buyers, no seller

  • Published at 11:27 pm September 22nd, 2019
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Logo of Grameenphone

As many as 10,72,528 shares in GP were traded at the DSE

Buoyed stock investors of Dhaka Stock Exchange (DSE) yesterday scrambled for the shares in Grameenphone, even at its halted price, after the government softened its stance on realising the dues from the largest listed company by paid-up capital.

As many as 10,72,528 shares in GP were traded at the DSE.  The market value of the traded shares was Tk38 crore. Around 3 lakh shares buy orders were pending until the market closed.

Buy orders were posted at GP’s site from almost all brokerage houses and merchant banks operating in the capital.

The GP closed the day at Tk360.5 per share, up from Tk335.3 per share in the previous session.  The stock gained by 7.19% or Tk 24.1.

“Today almost everybody sought to buy GP’s share, which was the opposite last week,” an official of a brokerage house at Motijheel told Dhaka Tribune.

“It seems market (stock market) is turning around riding on GP,” he added, apprehending that if amicable settlement between the GP and the government failed, GP share price would tumble again.

The broad index DSEX of Dhaka Stock Exchange (DSE) bounced back on the first trading day of the week and settled in green. A surge in index movers’ price namely GP, Square Pharma and British American Tobacco led the market to rise and settle in positive.

However, market turnover decreased by 21% from last day's session and stood at Tk304 crore. The broad index advanced by 64.98 points and closed at 4,921 points.

Earlier on Wednesday, Finance Minister AHM Mustafa Kamal said the dispute over the telecom regulator’s audit claim of around Tk12,500 crore against GP was likely to be settled within the next two to three weeks through discussions.

According to the DSE data, in a span of five months, GP’s share sank 30.70% to Tk289 on September 4, the lowest ever price of the mobile phone operator. 

The prolonged regulatory issues regarding the huge unpaid dues and subsequent show cause notice served to the operator spooked investors. 

The share price of the company was Tk472 on January 1,last year and it finished the year at Tk367.3 per share. GP’s share price was Tk364 on June 30 this year.

The decision of the government to solve issues with GP through alternative dispute resolution has triggered an uptick in GP's share price, market operators say.

Kamal also softened stance on Robi on recovering unpaid dues and opted for mutual discussion to resolve the stalemate.

Market operators have said the continued fall in price of GP affected the overall market and market capitalization. The price of shares in GP in the DSE leapt as investors are assured of Wednesday’s announcement of amicable solution.

After the finance minister’s announcement, GP’s share price yesterday topped the gainer chart of the DSE. 

According to the study of stock brokers, if the share price of GP increases 1%, it adds 7 points on broad index DSEX of Dhaka bourse.

According to the DSE data, sponsor-directors hold 90% of GP’s share, institutions 3.94%, foreign investors 3.93% and general investors hold 2.13%.