Stock prices continue to decline on DSE

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FE Report
Stock prices declined for the third consecutive day on Dhaka Stock Exchange (DSE) Tuesday on a rumour that institutional investors have become cautious while buying some of the over-heated issues.
The market is also affected because upbeat investors are taking preparations for buying two power sector issues- Jamuna Oil and Meghna Oil- by selling their present stocks.
Jamuna Oil and Meghna Oil will be directly listed on the bourses by the third week of November.
"We hope shares worth Tk 2.27 billion of Jamuna Oil, Meghna Oil and Titas Gas will be floated by the end of 2007 and it is creating a strong enthusiasm among the investors," a DSE source told the FE.
"The market declined for the third day when financial institutions advised their clients not to go for buying some over-heated issues at the present price-level," a DSE source told the FE.
When contacted, a source in the Investment Corporation of Bangladesh (ICB), however, told this correspondent that ICB always encourages its clients not to go for 'mad buying' of shares irrespective of the company fundamentals or strengths.
"We remain very cautious regarding the present market situation and it is our routine exercise to advise the investors so that they do not burn their fingers," the ICB source said.
ICB is the largest institu tional investor in the securities market.
On the day, all the market barometers- DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 Index (DS20) shed 7.09 points, 29.42 points and 29.42 points to close at 2855.36, 2404.88 and 2211.20 respectively.
The total turnover slightly rose to Tk 2.026 billion against Tk 2.024 billion.
The total market capitalisation also declined to Tk 692.33 billion from Tk 699.360 billion.
Out of 219 traded issues, prices of 103 gained, 102 declined and 14 remained unchanged.