Most of the blue-chip stocks such as British American Tobacco, Grameenphone, Renata, and Singer Bangladesh are failing to attract investors even though they are up for grabs at floor prices as investors fear that the market will fall if the floor price is lifted given the current gloomy economic scenario.
Blue-chip stocks are huge companies with excellent reputations, often including some of the biggest household names.
Among the 30 blue-chip companies in the DS-30 index of the Dhaka Stock Exchange, 24 have not seen trade in the last few weeks due to an absence of buyers.
The floor price, falling profits of listed companies, a lack of confidence among investors owing to economic uncertainty at home and abroad, depreciation of the taka, and higher inflation have made investors particularly cautious.
On July 29, the Bangladesh Securities and Exchange Commission (BSEC) set the floor price of every stock to halt the freefall of market indices amid global economic uncertainties, which have impacted various indicators of the economy in the last few months.
The floor price is the lowest price at which a stock can be traded. It is the average of the closing prices on July 28 and the preceding four days.
Apart from blue-chip stocks, eight multinational companies are also listed with the country’s premier bourse. They are not included in the blue-chip index.
But the well-performing multinational stocks,…
