DSE benchmark index sinks to 20-month low

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FE Report
Dhaka stocks extended losses Wednesday with the DSE benchmark index hitting an almost 20-month low on the day as worries gripped the investors over the market direction.
The benchmark index Dhaka Stock Exchange (DSE) General Index (DGEN) closed at 2414.27 with a fall of 24.17 points, a level last seen in August 2007.
The sectors, led by insurance and bank sectors, were ruling in the red and dragged the indices down. However, IT and mutual funds posted a moderate gain.
"Things are not getting well," said Osman Imam, professor of the finance depart ment of the Dhaka University.
People are playing game with some specific scrips, boding ill for the market, he added.
Sliding in banking stocks means sliding of the market as this sector accounted for around 40 per cent. He, however, expressed the optimism that the banking stocks could bounce back in the long run as this sector was fundamentally strong.
Bangladesh Bank (BB) will reduce the lending rate to 13 per cent within a day or two to offset the fallout of global meltdown. "But the news of reduction in the lending rate has no reflection in the market," a stockbroker said.
The All Shares Price Index and DSE-20 comprising blue chip shed 18.47 points and 21.19 points to end at 2005.88 and 1851.16 respectively.
Out of 245 issues traded, 111 gained, 130 declined and four remained unchanged.
The turnover, however, slightly declined to Tk 4.12 billion against Tk 4.35 billion on Tuesday. The market capitalisation stood at Tk 990.52 billion.
Shinepukur Ceramics Ltd was the top turnover leader with shares worth Tk 471.15 million traded.
Other turnover leaders were Beximco Ltd, Summit Power, Power Grid, Titas Gas, Beximco Pharma, S Alam Cold Rolled Steels Ltd, DESCO, EHL and Aftab Automobiles.
Al-Haj Textile, the day's top gainer, posted a rise of 19.66 per cent on the news that trading of the shares of the company will be held in electronic shares from paper shares with effect from April 30 next, 2009 as per the decision of the Securities and Exchange Commission.