Bangladesh Fund fails to attract investors****
Friday, 6 May 2011
FE Report
Dhaka stocks closed lower Thursday, despite debut trading of 'Bangladesh Fund' as big and institutional investors remained away from the market following government's stand to re-investigate probe against big players. The 'Bangladesh Fund' could not make any positive impact in the market as big and institutional investors remained idle, dealers said. The largest ever mutual fund failed to spur the investors' sentiment as the major index shed more than 73 points on the day, said a leading stock broker. The open-ended mutual fund with Tk 5 billion initial capital entered the market Thursday and started to invest with purchasing of a lot of 50 shares of government-run Titas Gas; a day after the Securities and Exchange Commission's approved its registered trust deed. Investors showed their enthusiasm just for initial two hours of the trading in response to the news that the fund entered into market. But later the index gradually went to the negative terrain and finally closed 73 points lower. However, Dhaka Stock Exchange (DSE) major index DGEN shot up almost 80 points just after five minutes of start of the trading. Finally DGEN fell by 73.69 points or 1.23 per cent to close at 5,899.40 points. Most of the issues traded on the day lost in prices as out of 245 issues traded, only 25 advanced, 214 declined and six remained unchanged. The broader All Shares Price Index (DSI) went down by 59.65 points or 1.20 per cent to close at 4,907.17. The DSE-20 index comprising blue-chip shares lost 40.69 points or 1.06 per cent to 3,796.60. Capital market analyst Akter H Sannamat said the big market players and their associates, who made big volume of trade are far from the market as the government plans to re-investigate against them. "The big investors and their associates, who made big volume of trade are now keeping safe distance from the market and many of them gradually sell-off shares instead of buying, fearing possible government action," said Mr Sannamat. "All the big investors did not play foul in the recent market debacle, so government should clear it against whom they are going to take decision ," he said. He said only "Bangladesh Fund' could not bring the market stability. To bring the market stability, it needs constructive, thoughtful and collective effort of all concerned." "Investors remained skeptical of the opening hike of the benchmark and did not indulge in the rising trend. Rather investors took 'wait and see' policy to observe the market behavior in coming sessions before going for fresh exposure," said LankaBangla Securities in its daily market commentary. All the sectors lost on the day with textile sector suffered the most and lost 2.78 per cent. Banks lost 0.42 per cent, NBFIs 1.63 per cent, telecommunications 0.64 per cent, Pharmaceuticals 1.56 per cent and fuel and power 1.44 per cent. Among the notable losers -- mutual fund sector 1.37 per cent, general insurance 1.72 per cent, life insurance 1.76 per cent, cement 0.91 per cent, ceramics 2.57 per cent and tannery lost 0.95 per cent on the day. However, the total turnover value increased and stood at Tk 5.3 billion (US$ 74.9 million), which is 39.4 per cent higher compared to the previous session. The state run oil company, Titas Gas emerged as the top turnover list with shares worth Tk 257.53 million changing hands. The other turnover leaders were Beximco Limited, UCBL, BSRM Steels, Bextex Limited, RN Spinning, National Bank, One Bank, Aftab Automobiles and United Airways. Dhaka Insurance was the highest gainer posting a rise of 6.25 per cent. It was followed by Glaxo SmithKline, Takaful Insurance, Jamuna Bank, Phoenix Finance First Mutual Fund, ACI Formula, Fifth ICB, Berger Paints Bangladesh Ltd Eastern Bank and Shajalal Bank. UCBL and Safko Spinning were the big losers following their price adjustment after record date. It was followed by Agrani Insurance, Paramount Insurance, City General Insurance, Ambee Pharma, Republic Insurance, ACI, United Insurance and Fine Foods. A total of 58.27million shares changed hands on the day against 41.53 million in the previous session. The trade deals also increased to 135,480 against Wednesday's 96,372. Total market capitalisation decreased slightly and stood at Tk 2715.04 billion against Tk 2742.49 billion in the previous session.
Dhaka stocks closed lower Thursday, despite debut trading of 'Bangladesh Fund' as big and institutional investors remained away from the market following government's stand to re-investigate probe against big players. The 'Bangladesh Fund' could not make any positive impact in the market as big and institutional investors remained idle, dealers said. The largest ever mutual fund failed to spur the investors' sentiment as the major index shed more than 73 points on the day, said a leading stock broker. The open-ended mutual fund with Tk 5 billion initial capital entered the market Thursday and started to invest with purchasing of a lot of 50 shares of government-run Titas Gas; a day after the Securities and Exchange Commission's approved its registered trust deed. Investors showed their enthusiasm just for initial two hours of the trading in response to the news that the fund entered into market. But later the index gradually went to the negative terrain and finally closed 73 points lower. However, Dhaka Stock Exchange (DSE) major index DGEN shot up almost 80 points just after five minutes of start of the trading. Finally DGEN fell by 73.69 points or 1.23 per cent to close at 5,899.40 points. Most of the issues traded on the day lost in prices as out of 245 issues traded, only 25 advanced, 214 declined and six remained unchanged. The broader All Shares Price Index (DSI) went down by 59.65 points or 1.20 per cent to close at 4,907.17. The DSE-20 index comprising blue-chip shares lost 40.69 points or 1.06 per cent to 3,796.60. Capital market analyst Akter H Sannamat said the big market players and their associates, who made big volume of trade are far from the market as the government plans to re-investigate against them. "The big investors and their associates, who made big volume of trade are now keeping safe distance from the market and many of them gradually sell-off shares instead of buying, fearing possible government action," said Mr Sannamat. "All the big investors did not play foul in the recent market debacle, so government should clear it against whom they are going to take decision ," he said. He said only "Bangladesh Fund' could not bring the market stability. To bring the market stability, it needs constructive, thoughtful and collective effort of all concerned." "Investors remained skeptical of the opening hike of the benchmark and did not indulge in the rising trend. Rather investors took 'wait and see' policy to observe the market behavior in coming sessions before going for fresh exposure," said LankaBangla Securities in its daily market commentary. All the sectors lost on the day with textile sector suffered the most and lost 2.78 per cent. Banks lost 0.42 per cent, NBFIs 1.63 per cent, telecommunications 0.64 per cent, Pharmaceuticals 1.56 per cent and fuel and power 1.44 per cent. Among the notable losers -- mutual fund sector 1.37 per cent, general insurance 1.72 per cent, life insurance 1.76 per cent, cement 0.91 per cent, ceramics 2.57 per cent and tannery lost 0.95 per cent on the day. However, the total turnover value increased and stood at Tk 5.3 billion (US$ 74.9 million), which is 39.4 per cent higher compared to the previous session. The state run oil company, Titas Gas emerged as the top turnover list with shares worth Tk 257.53 million changing hands. The other turnover leaders were Beximco Limited, UCBL, BSRM Steels, Bextex Limited, RN Spinning, National Bank, One Bank, Aftab Automobiles and United Airways. Dhaka Insurance was the highest gainer posting a rise of 6.25 per cent. It was followed by Glaxo SmithKline, Takaful Insurance, Jamuna Bank, Phoenix Finance First Mutual Fund, ACI Formula, Fifth ICB, Berger Paints Bangladesh Ltd Eastern Bank and Shajalal Bank. UCBL and Safko Spinning were the big losers following their price adjustment after record date. It was followed by Agrani Insurance, Paramount Insurance, City General Insurance, Ambee Pharma, Republic Insurance, ACI, United Insurance and Fine Foods. A total of 58.27million shares changed hands on the day against 41.53 million in the previous session. The trade deals also increased to 135,480 against Wednesday's 96,372. Total market capitalisation decreased slightly and stood at Tk 2715.04 billion against Tk 2742.49 billion in the previous session.