Floor price setting has squeezed investors confidence resulted trading many listed companies share less than half of face value, analysts said.
And for a long time shares of many companies are being traded between 2 to 5 rupees.
A large amount of money of investors is being stuck to the capital market for the floor price, sources said.
Shares of 20 listed companies are being sold at lower prices in the capital market. Investors are still counting losses by investing in these companies in the hope of expected dividends and profit in shares.
They allege that 16 out of 20 companies did not pay any dividend to the investors for the last financial year, citing various excuses including poor business.
As a result, the companies are currently in the ‘Z’ category. The remaining 4 companies are in the ‘B’ category with nominal dividends.
On Thursday (June 25), market analysis showed that shares of 20 companies were trading below the face value (Tk 10) or below Tk 5 on the Dhaka Stock Exchange (DSE). Share of Premier Leasing was traded at Tk 4.9, Union Capital at Tk 4.8, International Leasing at Tk 42, Fas Finance at Tk 4, and Dhaka Dyeing at Tk 3.8.
Price of RN Spinning at Tk 3.8, Jahintex at Tk 3.8, Delta Spinning at Tk 3.5, People’s Leasing at Tk 3, Apello Steel at Tk 2.8, ICB Islami Bank at Tk 2.8, Tallu Spinning at Tk 2.8, BIFC 2. At Tk 6, Keya Cosmetics at Tk 2.5, Feast Finance at Tk 2.4, Generation Next at Tk 2.2, Tunghai Knitting at Tk 1.9, Family Tex at Tk 1.8, C&A Textile at Tk 1.8 and United Air at 1.4 Money is being traded.
Abdul Hakim, a broker at the Dhaka Stock Exchange said now the buyback law is needed to be introduced.
“According to the buy back law, if the share price falls below the face value, the concerned company will buy it. Then investors will be able to make up for the loss.,” Hakim said
Kazi Abdur Razzak, general secretary of the Bangladesh Capital Market Investors Unity Council, said investors invest in companies in the hope that they will pay good dividends. But at the end of the year, the companies disappointed investors with ‘no dividends’. Besides, the financial condition of many companies is bad at present. Investors are suffering from this.