DGEN crosses 3400-mark first time as investors ignore regulator's warning
Tuesday, 3 November 2009
FE Report
Dhaka stocks benchmark index crossed the 3400-point mark for the first time Monday as shares enjoyed third consecutive day of record-breaking rally, boosted by better-than-expected third quarter reports by some companies.
Stock brokers said the investors have largely defied warnings by the securities regulator, reacting positively to handsome profits announced by some major companies including banks and leasing firms.
The Securities and Exchange Commission (SEC) has publicly expressed its concern over unsual gains by some "risky" shares over the past couple of weeks, and tightened banks' credit to purchase those stocks.
But the investors have so far ignored the advice pushing the DSE General Index (DGEN) to 3412.92, its highest mark from previous day's new record of 3364.26. It added 20.99 points or 0.61 per cent on the day.
The market gained steadily throughout the session, led by banks and insurers, although the surge was relatively low thanks to cautious pickings by the investors.
The broader DSE All Shares Price Index (DSI) nudged up by 17.68 points or 0.62 per cent to 2853.71 while the DSE-20 blue chip index rose 10.31 points or 0.44 per cent to 2307.16.
Gainers and losers were equal as out of 235 issues traded, 116 moved into the positive territory, the same figure ended into the negative and three remained unchanged.
"Rally by banking and insurance issues has sent the market into a new high," said Ahmed Rashid, a top stock broker and former senior vice president of the DSE.
The banks, the bellwether of the market, had been under pressure for weeks amid projections that they
would be battered by the fallout of global recession, but their third quarter financial accounts reveal a different story, he added.
Pharmaceuticals, multinational companies, Beximco Group, engineering and IT went down on profit taking while energy, non-banking financial institutions, textile and mutual funds ended mixed.
Turnover marginally declined to Tk 9.52 billion, down nearly three per cent from Sunday's Tk 9.8 billion.
State-owned gas distribution company Titas topped the turnover list with shares worth Tk 742.90 million changing hands.
Beximco, the flagship company of the industrial conglomerate bearing its name, was the second in turnover after leading trades on Sunday. Its shares worth Tk 699.27 million were traded.
Bextex, Summit Power, Jamuna Oil, AB Bank, Uttara Bank, Summit Alliance Port Ltd, DESCO and Navana CNG were the other top turnover leaders.
Uttara Finance, a non-banking financial institutions, gained the most for the second consecutive day, as its impressive third quarter profits continued to woo investors.
The leasing company's share prices rose 10.85 per cent --- a double-digit gain for the second day in a row--- after it reported Tk 345.24 million third quarter net profit last month.
Other leading gainers were Asia Pacific Insurance, Uttara Bank, Dutch-Bangla Bank, Renata, Libran Infusion, NCC Bank, Gemini Sea Food, Rahim Textile and AB Bank.
Bangas, Dhaka Fisheries, Mithun Knitting, Savar Refractories, Tallu Spinning, Samata Leather, Shyampur Sugar Mills and Jute Spinning were the major losers.
Dhaka stocks benchmark index crossed the 3400-point mark for the first time Monday as shares enjoyed third consecutive day of record-breaking rally, boosted by better-than-expected third quarter reports by some companies.
Stock brokers said the investors have largely defied warnings by the securities regulator, reacting positively to handsome profits announced by some major companies including banks and leasing firms.
The Securities and Exchange Commission (SEC) has publicly expressed its concern over unsual gains by some "risky" shares over the past couple of weeks, and tightened banks' credit to purchase those stocks.
But the investors have so far ignored the advice pushing the DSE General Index (DGEN) to 3412.92, its highest mark from previous day's new record of 3364.26. It added 20.99 points or 0.61 per cent on the day.
The market gained steadily throughout the session, led by banks and insurers, although the surge was relatively low thanks to cautious pickings by the investors.
The broader DSE All Shares Price Index (DSI) nudged up by 17.68 points or 0.62 per cent to 2853.71 while the DSE-20 blue chip index rose 10.31 points or 0.44 per cent to 2307.16.
Gainers and losers were equal as out of 235 issues traded, 116 moved into the positive territory, the same figure ended into the negative and three remained unchanged.
"Rally by banking and insurance issues has sent the market into a new high," said Ahmed Rashid, a top stock broker and former senior vice president of the DSE.
The banks, the bellwether of the market, had been under pressure for weeks amid projections that they
would be battered by the fallout of global recession, but their third quarter financial accounts reveal a different story, he added.
Pharmaceuticals, multinational companies, Beximco Group, engineering and IT went down on profit taking while energy, non-banking financial institutions, textile and mutual funds ended mixed.
Turnover marginally declined to Tk 9.52 billion, down nearly three per cent from Sunday's Tk 9.8 billion.
State-owned gas distribution company Titas topped the turnover list with shares worth Tk 742.90 million changing hands.
Beximco, the flagship company of the industrial conglomerate bearing its name, was the second in turnover after leading trades on Sunday. Its shares worth Tk 699.27 million were traded.
Bextex, Summit Power, Jamuna Oil, AB Bank, Uttara Bank, Summit Alliance Port Ltd, DESCO and Navana CNG were the other top turnover leaders.
Uttara Finance, a non-banking financial institutions, gained the most for the second consecutive day, as its impressive third quarter profits continued to woo investors.
The leasing company's share prices rose 10.85 per cent --- a double-digit gain for the second day in a row--- after it reported Tk 345.24 million third quarter net profit last month.
Other leading gainers were Asia Pacific Insurance, Uttara Bank, Dutch-Bangla Bank, Renata, Libran Infusion, NCC Bank, Gemini Sea Food, Rahim Textile and AB Bank.
Bangas, Dhaka Fisheries, Mithun Knitting, Savar Refractories, Tallu Spinning, Samata Leather, Shyampur Sugar Mills and Jute Spinning were the major losers.