Decline in stock prices persists
FE Report | Tuesday, 19 August 2008
The benchmark DGEN index Monday sank 2.09 per cent or 56.12 points to close at 2618.95, its lowest level in the last 11 months.
The market operators and analysts attributed the fall to price adjustment of market heavyweight Square Pharmaceuticals and erosion of confidence of the investors shocked by the continued sliding trend.
The two other market barometres -- All Shares Price Index (DSI) and DSE-20 Index (DS20), blue chips also tumbled 41.25 points and 133.56 points to end at 2254.68 and 2345.96 respectively.
Trading at the Dhaka Stock Exchange (DSE) opened with lacklustre fashion due to sharp fall in the share prices of Square Pharmaceuticals that went ex-dividend.
"The persistent fall of the market has made the investors panicky and unnerved, sending the market into the red. Price adjustment of the market heavy weight Square Pharmaceuticals has just added to the downturn of the market," said a market analyst.
A leading stock broker said, "No one could deny the fact that investors' confidence in the share business has been terribly shaken over the last couple of months as some investors have already left the market to avoid further losses."
However, DSE former vice president Ahmad Rashid Lali said, "The market is facing fund crunch as IPO subscriptions of a number of companies are going on."
On the downtrend of the market, he said, "Generally, the market remained dull during this period (July-August) as it is the season of dividend declaration by the companies."
The total turnover, however, slightly rose to Tk 1.85 billion against previous Tk 1.82 billion. The top ten gaining companies accounted for 58.29 per cent of the total turnover.
The market operators and analysts attributed the fall to price adjustment of market heavyweight Square Pharmaceuticals and erosion of confidence of the investors shocked by the continued sliding trend.
The two other market barometres -- All Shares Price Index (DSI) and DSE-20 Index (DS20), blue chips also tumbled 41.25 points and 133.56 points to end at 2254.68 and 2345.96 respectively.
Trading at the Dhaka Stock Exchange (DSE) opened with lacklustre fashion due to sharp fall in the share prices of Square Pharmaceuticals that went ex-dividend.
"The persistent fall of the market has made the investors panicky and unnerved, sending the market into the red. Price adjustment of the market heavy weight Square Pharmaceuticals has just added to the downturn of the market," said a market analyst.
A leading stock broker said, "No one could deny the fact that investors' confidence in the share business has been terribly shaken over the last couple of months as some investors have already left the market to avoid further losses."
However, DSE former vice president Ahmad Rashid Lali said, "The market is facing fund crunch as IPO subscriptions of a number of companies are going on."
On the downtrend of the market, he said, "Generally, the market remained dull during this period (July-August) as it is the season of dividend declaration by the companies."
The total turnover, however, slightly rose to Tk 1.85 billion against previous Tk 1.82 billion. The top ten gaining companies accounted for 58.29 per cent of the total turnover.