DGEN again goes below 2500-mark

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FE Report
Dhaka stocks tumbled Sunday with the DSE benchmark index plunging below 2500-mark for the second time in last three months.
Factors like continued bearish trend, bleak economic scenario painted by policymakers and economists, lower than expected dividend declaration by the banks have created a sense of gloom among investors, experts say.
Meanwhile, the DSE convened an urgent meeting to review the current market situation.
The Dhaka Stock Exchange (DSE) General Index (DGEN) - the benchmark index- shed 72.94 points, the biggest single day drop for the first time in six weeks, to close at 2450.83. Banking stocks were mainly responsible for the sharp decline in the DGEN.
Trading at the prime bourse began in a downbeat mood and did not recover because of investors' selling spree.
"The continuous bear-run over the weeks has actually dampened the investors' mood," said RY Shamsher, head of merchant banking division of the AB Bank Limited.
Referring to the warning of the policymakers and economists on the impact of the global financial turmoil on Bangladesh economy, he said this might have left a psychological impact on the investors.
The total turnover also suffered much as it came down below Tk 3.0 billion mark. The turnover declined to Tk 2.95 billion as against that of Tk 3.35 billion on Wednesday.
The losers took a strong lead over the gainers, as out of total 251 issues traded on the day, prices of 60 stocks rose, while 186 dropped and five remained unchanged.
"I sat with my senior colleagues to review the present market situation," DSE president Rakibur Rahman told the FE.
"We also discussed some statements issued in the last few days from different quarters on the impact of global economic downturn on the country's economy," he said.
He, however, expressed his determination to stabilise the market, saying, "We're trying to stabilise the market and our efforts will continue."
The banking stocks continued to lose its shine even after corporate declarations on the day.
For the past year, board of directors of Uttara Bank recommended one bonus share against each existing share, AB Bank 15 per cent stock dividend and 15 per cent cash dividend, Shahjalal Bank 22 per cent stock dividend and Islami Bank 30 per cent stock dividend.
"The probable slowdown in banks' earnings amidst global financial meltdown is a major cause of concern for the investors," Shamsher said adding that generally, the investors put their money anticipating the future prospects of any institution.
The All Shares Price Index (DSI) ended at 2033.63 with a drop of 57.73 points and the DSE-20 blue chip index finished at 2450.83 with a loss of 44.38 points.
The market capitalisation stood at Tk 1.00 trillion.
Summit Power was the top turnover leader with shares worth Tk 176.21 million traded.
Other turnover leaders were Beximco, Uttara Bank, Shinepukur Ceramics Limited, AB Bank, Titas Gas, Beximco Pharma, S Alam Cold Rolled Steel Mills Limited and BSRM Steels Limited.
The top gainers were Monno Stafflers, Metro Spinning, Kohinoor Chemicals, National Housing Finance and Investment Limited (NHFIL), Janata Insurance, IBBL Perpetual Bond, Mercantile Insurance, Federal Insurance, NTC and Republic Insurance.
Share prices of the Premier Bank had the biggest fall of 27.45 per cent as the bank went ex-dividend.
Other top losers were AB Bank, Monno Ceramic, GQ Ball Pen, 2nd ICB, Chittagong Vegetable, Aftab Automobiles, Desh Garments, Rose Heaven and Modern Cement.