Share prices decline

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FE Report
Share prices on the Dhaka Stock Exchange (DSE) went down in the week that ended Thursday, ending the fifth straight week of gaining streak.
The market witnessed dull trading during the week amid worries on possible price correction due to many factors, including anticipation of selling spree by institutional investors ahead of half-yearly closing and retailers' fretting over latest market cooling moves by authorities.
During the week, the benchmark DSE General Index (DGEN) closed at 6189.85, shedding 109.89 points or 1.74 per cent.
The broader All Shares Price Index (DSI) was down by 1.46 per cent or 75.84 points to 5134.52, while the DSE-20 blue chip index lost 0.61 per cent or 22.35 points to 3646.37.
Meanwhile, the DSE authorities will continue trading on Sunday, a day when main opposition BNP called countrywide dawn-to-dusk hartal, provided there is no quorum crisis.
One-third of its brokers are needed to log in with the server for trading resumption.
Currently, the bourse has 235 active members out of total 238.
Shakil Rizvi, president of the DSE, said, "Trading would take place if the quorum of the members was filled."
Banking sector, which makes up one-fourth of the total market capitalisation, dominated the week as the sector accounted for 47 per cent of the total turnover of the week.
Among all the sectors, only banks closed positive rising marginally 0.23 per cent. The top three gainers of the week were also banks, namely, IFIC bank that rose 16.6 per cent, United Commercial Bank 13.0 per cent and One Bank 10.1 per cent.
Pharmaceuticals dropped 3.55 per cent to emerge as top loser in the week. Grameenphone, the lone listed company in telecommunications sector and most weighted shares in DSE, was down by 3.44 per cent and, fuel and power 2.86 per cent.
Leasing or non-banking financial institutions declined marginally 0.5 per cent and insurances, especially general insurers, also lost.
"Many institutional investors booked profit ahead of June closing. Investors were concerned over Bangladesh Bank's move to limit banks' exposure to the market and Securities and Exchange Commission's lowering of price-earning (P/E) ratio," said a merchant banker.
Last week the SEC ordered merchant banks and stockbrokers not to lend to purchase equities with P/E ratio above 40. On Tuesday, the BB asked banks not to invest more than 10 per cent of their liabilities in the stock market.
Across the board selling was seen in the week, as out of 271 issues traded, 54 closed positive, 199 negative, two remained unchanged and 16 were not traded.
Average daily turnover was Tk 14.78 billion, down by 31.58 per cent over the previous week's Tk 21.60 billion.
"One of the major reasons behind the noticeably lower turnover was the market regulator's decision to direct the merchant banks to allow only stocks of less than 40 P/E for margin loan. As a result, the credit flow in the market has decreased visibly," said BRAC-EPL in its weekly market commentary.
Out of five sessions, the market tumbled in the first two sessions and regained in third session. It closed flat in fourth and fifth sessions, showing a recovery sign as fear about possible price correction eased a bit during the concluding two sessions.
Beximco Ltd was the week's top turnover leader with shares worth Tk 5.07 billion traded.