Another frustrating week for investors
FE Report | Saturday, 26 February 2011
FE Report
Investors passed another frustrating week as all indices of DSE dipped further making a turnaround with the government intervention at the beginning of the week. After rising substantially during the opening day, the week ended shedding 125.41 points to stand at 5800.94. Market insiders said low participation of the institutional investors created selling pressure in the market. A senior broker said government has to come up with fresh packages for the salvage of the market. It seems government's previous plan is not working to save the investors. 'The aim of the incentive package should be to regain investors' confidence,' said the broker. An analyst said, the market is passing through a correction period. The daily turnover volume indicates there are not enough buyers and sellers in the market. "Government intervention is enough to create impact in the market as it grew substantially in the last couple of years" he said. The week's daily average turnover declined 3.0 per cent to Tk 6.68 billion against Tk 6.89 billion of the previous week. During the week, the benchmark index DGEN ended at 5800.94 points with a loss of 125.41 points or 2.12 per cent. However the fall would have been much higher had the market not gained steeply 7.82 per cent or 463.27 points on Sunday, the opening day of the week. The benchmark index lost 588.69 points or 9.21 per cent in the last thee days of the week while the market remained closed on Monday, 21st February, the international mother language day. The broader index, DSI, lost 105.21 points or 2.14 per cent to 4810.41 with the blue-chip, DSE-20 stood at 3905.92 points during the week. In the opening day of the week, the market bounced back following the news on Friday that the government will prevent "forced selling" by the merchant banks resulting the DGEN up by 7.82 per cent or 463.27 points on the day. Most of the companies hit the upper limit of their respective circuit breaker on the day. On Tuesday, returned on the declining trend after two consecutive sessions of substantial gains. Major Price correction in most of the traded issue pulled down the Dhaka Stock Exchange main index DGEN 216.23 points to stand at 6173.78 points. On Tuesday, the market started to fall as DGEN lost 3.38 per cent or 216.23 points while turnover value up by 66.7 per cent to Tk 9.6 billion, the highest for the week. On the last two trading sessions, Wednesday and Thursday---DGEN went down by 2.51 per cent or 154.90 points and 3.61 per cent or 217 points. Among the sectors, telecommunication was the biggest loser in the week as Grameenphone, the lone listed company of the sector went down by 12.56 per cent. Bank, fuel and power and cement sectors lost 2.69 per cent, 3.51 per cent and 3.56 per cent respectively. Both life insurance and general insurance - retraced more than 3.0 per cent each while pharmaceuticals lost only 0.53 per cent. Mutual fund and ceramics sector also lost 3.67 per cent and 5.72 per cent. Tallu Spinning, Rahima Food, Anlima Yarn, Berger Paints, Sonargaon Textiles, Imam Button, Monno Ceramic, Bangladesh Shipping Corporation, Grameenphone Ltd and Chittagong Vegetable were the week's top losers. National Bank was the most traded shares in the week with shares worth Tk 1.42 billion changing hands. It was followed by Beximco Limited, Peoples Leasing, Lankabangla Finance, Bextex Ltd, Union Capital, One Bank, Bay Leasing, Prime Finance and Titas Gas. Prime Finance was the top gainer posting a rise of 13.4 per cent followed by IDLC Finance, Asia Insurance, Phoenix Finance First Mutual Fund, ACI Ltd, First Leasing International, Glaxo SmithKine, Union Capital Bextex Ltd and BD Finance. Although rampant fall in the index was seen in the most part of the week, some of the listed companies came up with encouraging corporate declarations. Bank Asia declared 40 per cent bonus, Brac Bank 20 per cent bonus and 10 per cent cash, Dhaka Bank declared 35 per cent stock, Lanka Bangla 55 per cent stock, Mercantile Bank 22 per cent stock, One bank 55 per cent stock, Prime Bank 5 per cent cash and 35 per cent and Southeast Bank 20 per cent stock and 10 per cent cash.
Investors passed another frustrating week as all indices of DSE dipped further making a turnaround with the government intervention at the beginning of the week. After rising substantially during the opening day, the week ended shedding 125.41 points to stand at 5800.94. Market insiders said low participation of the institutional investors created selling pressure in the market. A senior broker said government has to come up with fresh packages for the salvage of the market. It seems government's previous plan is not working to save the investors. 'The aim of the incentive package should be to regain investors' confidence,' said the broker. An analyst said, the market is passing through a correction period. The daily turnover volume indicates there are not enough buyers and sellers in the market. "Government intervention is enough to create impact in the market as it grew substantially in the last couple of years" he said. The week's daily average turnover declined 3.0 per cent to Tk 6.68 billion against Tk 6.89 billion of the previous week. During the week, the benchmark index DGEN ended at 5800.94 points with a loss of 125.41 points or 2.12 per cent. However the fall would have been much higher had the market not gained steeply 7.82 per cent or 463.27 points on Sunday, the opening day of the week. The benchmark index lost 588.69 points or 9.21 per cent in the last thee days of the week while the market remained closed on Monday, 21st February, the international mother language day. The broader index, DSI, lost 105.21 points or 2.14 per cent to 4810.41 with the blue-chip, DSE-20 stood at 3905.92 points during the week. In the opening day of the week, the market bounced back following the news on Friday that the government will prevent "forced selling" by the merchant banks resulting the DGEN up by 7.82 per cent or 463.27 points on the day. Most of the companies hit the upper limit of their respective circuit breaker on the day. On Tuesday, returned on the declining trend after two consecutive sessions of substantial gains. Major Price correction in most of the traded issue pulled down the Dhaka Stock Exchange main index DGEN 216.23 points to stand at 6173.78 points. On Tuesday, the market started to fall as DGEN lost 3.38 per cent or 216.23 points while turnover value up by 66.7 per cent to Tk 9.6 billion, the highest for the week. On the last two trading sessions, Wednesday and Thursday---DGEN went down by 2.51 per cent or 154.90 points and 3.61 per cent or 217 points. Among the sectors, telecommunication was the biggest loser in the week as Grameenphone, the lone listed company of the sector went down by 12.56 per cent. Bank, fuel and power and cement sectors lost 2.69 per cent, 3.51 per cent and 3.56 per cent respectively. Both life insurance and general insurance - retraced more than 3.0 per cent each while pharmaceuticals lost only 0.53 per cent. Mutual fund and ceramics sector also lost 3.67 per cent and 5.72 per cent. Tallu Spinning, Rahima Food, Anlima Yarn, Berger Paints, Sonargaon Textiles, Imam Button, Monno Ceramic, Bangladesh Shipping Corporation, Grameenphone Ltd and Chittagong Vegetable were the week's top losers. National Bank was the most traded shares in the week with shares worth Tk 1.42 billion changing hands. It was followed by Beximco Limited, Peoples Leasing, Lankabangla Finance, Bextex Ltd, Union Capital, One Bank, Bay Leasing, Prime Finance and Titas Gas. Prime Finance was the top gainer posting a rise of 13.4 per cent followed by IDLC Finance, Asia Insurance, Phoenix Finance First Mutual Fund, ACI Ltd, First Leasing International, Glaxo SmithKine, Union Capital Bextex Ltd and BD Finance. Although rampant fall in the index was seen in the most part of the week, some of the listed companies came up with encouraging corporate declarations. Bank Asia declared 40 per cent bonus, Brac Bank 20 per cent bonus and 10 per cent cash, Dhaka Bank declared 35 per cent stock, Lanka Bangla 55 per cent stock, Mercantile Bank 22 per cent stock, One bank 55 per cent stock, Prime Bank 5 per cent cash and 35 per cent and Southeast Bank 20 per cent stock and 10 per cent cash.