Delay in verdict on MF case puts damper on Dhaka stocks
Friday, 21 August 2009
FE Report
Dhaka stocks finished the week slightly lower Thursday with turnover crossing Tk 8.0 billion mark for the first time in seven weeks ahead of holy month of Ramadan beginning Sunday next.
The market opened with a weak note as all the mutual funds saw sharp decline, caused by the delay in announcement of verdict on mutual fund case. The verdict will be delivered on October 14 next.
The benchmark Dhaka Stock Exchange General Index (DGEN) shed 6.84 points or 0.22 per cent to end at 3027.94, recovering from loss of 28 points in around mid session, thanks to the insurance companies.
The insurance companies rose on expectation that reformed Insurance Act might be passed in the next session of Parliament scheduled for September 7 next.
Energy shares ended flat. Banks declined while non-banking financial institutions (NBFIs) ended in the positive territory.
The broader All Shares Price Index (DSI) lost 5.30 points or 0.20 per cent to end at 2546.54. The DSE-20 comprising blue chips gained 5.70 points or 0.26 per cent to close at 2191.11.
"The market moved down slightly as the investors focused on Ramadan more than the market today, last working day before beginning of the holy month," Moin Al-Kasem, managing director and CEO of the Prime Finance AMC, said.
However, market sources said, news regarding conversion of some loans into ordinary shares about the Bextext, textile arm of leading industrial conglomerate Beximco Group, and sharp fall in mutual fund stocks have adverse impact on the market.
In May 14 last, in response to a DSE query about conversion of some loans into ordinary shares, the Bextex said that its board of directors in principle decided to convert the loans of CDC, DEG, Marubeni Corporation and Beximco Group Companies into ordinary shares.
The matter is now under consideration of the Securities and Exchange Commission (SEC).
The market was skewed towards decliners as out of the 237 issues traded, 96 gained, 138 declined and three remained unchanged.
The turnover increased significantly to stand at Tk 8.06 billion, up 4.2 per cent from the previous session's Tk 7.75 billion, on the back of a huge trading of shares of Bextex.
The company was the top turnover leader with shares worth Tk 525.98 million traded, followed by its parent company Beximco with Tk 425.51 million.
EBL First Mutual Fund that made debut on the previous day lost 5.15 per cent to close at Tk 33.10 a share.
Among the top ten losers, all except an insurance company came from mutual funds with AIMS First Mutual Fund losing highest 14.56 per cent.
The day's other top losers were 5th ICB, 6th ICB, ICB AMCL First, 8th ICB, 4th ICB, 7th ICB, ICB Islamic and Grameen One.
Republic Insurance was the biggest gainer with a rise of 12.90 per cent. Modern Dyeing, Asia Insurance, Standard Insurance, Continental Insurance, Aftab Automobiles and Agrani Insurance were the major gainers on the day.
Dhaka stocks finished the week slightly lower Thursday with turnover crossing Tk 8.0 billion mark for the first time in seven weeks ahead of holy month of Ramadan beginning Sunday next.
The market opened with a weak note as all the mutual funds saw sharp decline, caused by the delay in announcement of verdict on mutual fund case. The verdict will be delivered on October 14 next.
The benchmark Dhaka Stock Exchange General Index (DGEN) shed 6.84 points or 0.22 per cent to end at 3027.94, recovering from loss of 28 points in around mid session, thanks to the insurance companies.
The insurance companies rose on expectation that reformed Insurance Act might be passed in the next session of Parliament scheduled for September 7 next.
Energy shares ended flat. Banks declined while non-banking financial institutions (NBFIs) ended in the positive territory.
The broader All Shares Price Index (DSI) lost 5.30 points or 0.20 per cent to end at 2546.54. The DSE-20 comprising blue chips gained 5.70 points or 0.26 per cent to close at 2191.11.
"The market moved down slightly as the investors focused on Ramadan more than the market today, last working day before beginning of the holy month," Moin Al-Kasem, managing director and CEO of the Prime Finance AMC, said.
However, market sources said, news regarding conversion of some loans into ordinary shares about the Bextext, textile arm of leading industrial conglomerate Beximco Group, and sharp fall in mutual fund stocks have adverse impact on the market.
In May 14 last, in response to a DSE query about conversion of some loans into ordinary shares, the Bextex said that its board of directors in principle decided to convert the loans of CDC, DEG, Marubeni Corporation and Beximco Group Companies into ordinary shares.
The matter is now under consideration of the Securities and Exchange Commission (SEC).
The market was skewed towards decliners as out of the 237 issues traded, 96 gained, 138 declined and three remained unchanged.
The turnover increased significantly to stand at Tk 8.06 billion, up 4.2 per cent from the previous session's Tk 7.75 billion, on the back of a huge trading of shares of Bextex.
The company was the top turnover leader with shares worth Tk 525.98 million traded, followed by its parent company Beximco with Tk 425.51 million.
EBL First Mutual Fund that made debut on the previous day lost 5.15 per cent to close at Tk 33.10 a share.
Among the top ten losers, all except an insurance company came from mutual funds with AIMS First Mutual Fund losing highest 14.56 per cent.
The day's other top losers were 5th ICB, 6th ICB, ICB AMCL First, 8th ICB, 4th ICB, 7th ICB, ICB Islamic and Grameen One.
Republic Insurance was the biggest gainer with a rise of 12.90 per cent. Modern Dyeing, Asia Insurance, Standard Insurance, Continental Insurance, Aftab Automobiles and Agrani Insurance were the major gainers on the day.