Debutant EBL First Mutual Fund pulls down DSE slightly
Thursday, 20 August 2009
FE Report
Dhaka stocks dropped marginally lower Wednesday as the investors, releasing a portion of their portfolio, opted for debutant EBL First Mutual Fund.
The market rose sharply in first hour, boosted by all sectors. Later from around mid session, the index saw freefall until the end of the trade, prompted by huge buy pressure from the EBL First Mutual Fund, the turnover leader and highest gainer on its debut.
The benchmark Dhaka Stock Exchange General Index (DGEN) finished at 3034.79 with a meagre loss of 4.85 points or 0.15 per cent, wiping out early gains of 28 points.
The broader All Shares Price Index (DSI) lost 5.36 points or 0.20 per cent to end at 2551.85. The DSE-20 comprising blue chips gained 2.20 points or 0.10 per cent to close at 2185.40.
"EBL First Mutual Fund has pulled the market down today," said investment bank Equity Partners Limited (EPL), in its analysis.
Out of the 237 issues traded, 76 gained, 155 declined and six remained unchanged.
Turnover increased to Tk 7.75 billion, an increase of 6.4 per cent from the turnover of previous session (Tk 7.10 billion), on the back of huge share trading of the debutant EBL First Mutual Fund.
A total of 2,10,19500 worth Tk 741.03 million of the fund were changed hands and its share prices rose 250 per cent on its face value to close at Tk 34.90 per share. It accounted for nearly 10 per cent of the total turnover on its debut trading day. However, it peaked as high as Tk 45.00.
Initial public offering (IPO) of the fund was oversubscribed by 17 times against 20 million shares allocated for public and the rest 60 million was kept for pre-IPO placement, and the rest 20 million for sponsor.
Bilkis Akhter Mili like many general investors expressed disappointment because of additional share selling of the debutant mutual fund more than the IPO portion on debut trading day.
"Sponsors and institutional investors have become benefited more than the general public like us as we got shares taking part in lottery," said Bilkis.
"The securities regulator should introduce at least six months lock-in system for institutional investors to stop such practice," she added.
Insurance sectors gained while banks, non-banking financial institutions, energy and mutual funds lost. Most of the other sectors ended negative.
Leading industrial conglomerate Beximco Group's parent company Beximco came out second with shares worth Tk 392.30 million, followed by its textile arm Bextex with Tk 241.55 million were traded.
Modern Dyeing, Eastern Insurance, Monno Stafflers, BOC and Metro Spinning were the major gainers on the day.
Northern Insurance, Bangas, Safko Spinning, CMC Kamal and Hakkani Pupl and Paper were the top losers on the day.
Dhaka stocks dropped marginally lower Wednesday as the investors, releasing a portion of their portfolio, opted for debutant EBL First Mutual Fund.
The market rose sharply in first hour, boosted by all sectors. Later from around mid session, the index saw freefall until the end of the trade, prompted by huge buy pressure from the EBL First Mutual Fund, the turnover leader and highest gainer on its debut.
The benchmark Dhaka Stock Exchange General Index (DGEN) finished at 3034.79 with a meagre loss of 4.85 points or 0.15 per cent, wiping out early gains of 28 points.
The broader All Shares Price Index (DSI) lost 5.36 points or 0.20 per cent to end at 2551.85. The DSE-20 comprising blue chips gained 2.20 points or 0.10 per cent to close at 2185.40.
"EBL First Mutual Fund has pulled the market down today," said investment bank Equity Partners Limited (EPL), in its analysis.
Out of the 237 issues traded, 76 gained, 155 declined and six remained unchanged.
Turnover increased to Tk 7.75 billion, an increase of 6.4 per cent from the turnover of previous session (Tk 7.10 billion), on the back of huge share trading of the debutant EBL First Mutual Fund.
A total of 2,10,19500 worth Tk 741.03 million of the fund were changed hands and its share prices rose 250 per cent on its face value to close at Tk 34.90 per share. It accounted for nearly 10 per cent of the total turnover on its debut trading day. However, it peaked as high as Tk 45.00.
Initial public offering (IPO) of the fund was oversubscribed by 17 times against 20 million shares allocated for public and the rest 60 million was kept for pre-IPO placement, and the rest 20 million for sponsor.
Bilkis Akhter Mili like many general investors expressed disappointment because of additional share selling of the debutant mutual fund more than the IPO portion on debut trading day.
"Sponsors and institutional investors have become benefited more than the general public like us as we got shares taking part in lottery," said Bilkis.
"The securities regulator should introduce at least six months lock-in system for institutional investors to stop such practice," she added.
Insurance sectors gained while banks, non-banking financial institutions, energy and mutual funds lost. Most of the other sectors ended negative.
Leading industrial conglomerate Beximco Group's parent company Beximco came out second with shares worth Tk 392.30 million, followed by its textile arm Bextex with Tk 241.55 million were traded.
Modern Dyeing, Eastern Insurance, Monno Stafflers, BOC and Metro Spinning were the major gainers on the day.
Northern Insurance, Bangas, Safko Spinning, CMC Kamal and Hakkani Pupl and Paper were the top losers on the day.