DGEN plunges below 6,000-mark for profit taking, SEC's concern
Tuesday, 25 May 2010
FE Report
Dhaka stocks dived below 6,000 Monday, a day after it crossed the milestone, as profit taking and the regulator's cautionary words shed nearly two per cent off the market.
After an astounding climb of six per cent in stock prices in the last sixth straight session, the benchmark DSE General Index (DGEN) tumbled 1.70 per cent or 103.84 points to 5993.04 from the previous day's all time high 6096.88.
Profit taking in all the major sectors - telecommunications, bank, leasing, fuel and power - weighed heavily on the market, and the Securities and Exchange Commission (SEC)'s concern over the bull-run might prompt selling pressure, contributing to the market's fall also, dealers said.
The broader All Shares Price Index (DSI) closed at 4929.68 with a fall of 80.56 points or 1.60 per cent. The DSE 20 index comprising the blue chip shares ended at 3324.39, down 1.40 per cent or 47.41 points.
"I think the market has managed the inevitable profit taking very well," said Akter H Sannamat, managing director of Prime Finance and Investment Limited.
"Reports, however, in the newspapers on regulator's concern over the market's relentless rise might be another factor for the decline," he said.
SEC, in the previous day, went public with its worries, after the key index of DSE crossed 6,000-mark for the first time, and said, "We are concerned over the market's recent rise."
Since the record-breaking session began on May 16, the benchmark DGEN rose more than six per cent, after the government allowed conversion of high face-valued shares into Tk10 each.
The market fell across the board, as out of 254 issues traded, only 47 closed positive, 202 negative, and five remained unchanged. Turnover also suffered heavily, as it declined 10 per cent to Tk 18.5 billion from the previous day's Tk 20.5 billion.
Dhaka stocks dived below 6,000 Monday, a day after it crossed the milestone, as profit taking and the regulator's cautionary words shed nearly two per cent off the market.
After an astounding climb of six per cent in stock prices in the last sixth straight session, the benchmark DSE General Index (DGEN) tumbled 1.70 per cent or 103.84 points to 5993.04 from the previous day's all time high 6096.88.
Profit taking in all the major sectors - telecommunications, bank, leasing, fuel and power - weighed heavily on the market, and the Securities and Exchange Commission (SEC)'s concern over the bull-run might prompt selling pressure, contributing to the market's fall also, dealers said.
The broader All Shares Price Index (DSI) closed at 4929.68 with a fall of 80.56 points or 1.60 per cent. The DSE 20 index comprising the blue chip shares ended at 3324.39, down 1.40 per cent or 47.41 points.
"I think the market has managed the inevitable profit taking very well," said Akter H Sannamat, managing director of Prime Finance and Investment Limited.
"Reports, however, in the newspapers on regulator's concern over the market's relentless rise might be another factor for the decline," he said.
SEC, in the previous day, went public with its worries, after the key index of DSE crossed 6,000-mark for the first time, and said, "We are concerned over the market's recent rise."
Since the record-breaking session began on May 16, the benchmark DGEN rose more than six per cent, after the government allowed conversion of high face-valued shares into Tk10 each.
The market fell across the board, as out of 254 issues traded, only 47 closed positive, 202 negative, and five remained unchanged. Turnover also suffered heavily, as it declined 10 per cent to Tk 18.5 billion from the previous day's Tk 20.5 billion.