Dhaka stock dip continues
Tuesday, 19 February 2008
FE Report
Dhaka stocks continued to dip Monday for the second straight day led by banks, pharmaceuticals, power and energy issues resulting in a significant decline in turnover.
The supply of money in the stock market continued to decline as the investors remained confused over fresh loan disbursement by the merchant banks, according to the market players. The indices slid across the board on the day and from the very outset of the trading, the main index started to decline and never recovered.
The benchmark Dhaka Stock Exchange General Index (DGEN) shed 36 points to close at 2900.05, a two-week low.
Two other indices -- the All Shares Price Index (DSI) and the DSE-20 Index (DS20) shed 31.58 points and 24.29 points to close at 2447.22 and 2294.97 respectively.
Dominated by losers, the total turnover decreased below a two-week low to Tk 1.70 billion from previous day's Tk 2.15 billion.
Out of 220 issues traded on the day, 163 declined, 49 advanced and eight remained unchanged. The total market capitalisation came down below Tk 800 billion-mark to reach at Tk 796.54 billion from previous day's Tk 804.81 billion.
Commenting on the market, an analyst said, "Being confused over the loan disbursement by the merchant banks, the investors began to pull out of the market by selling shares of their stocks without making any profit as they expected to get loan after securities regulator's enhancement of margin loan for the merchant bankers."
"However, I would say the market is digesting the effect of all restrictions lifted by the Securities and Exchange Commission recently," he added.
He said to bring them (investors) back to the market, new issues needs to be floated in the market as prices of some issues are still overvalued, which also discourages the merchant banks to give loan to their clients.
Dhaka stocks continued to dip Monday for the second straight day led by banks, pharmaceuticals, power and energy issues resulting in a significant decline in turnover.
The supply of money in the stock market continued to decline as the investors remained confused over fresh loan disbursement by the merchant banks, according to the market players. The indices slid across the board on the day and from the very outset of the trading, the main index started to decline and never recovered.
The benchmark Dhaka Stock Exchange General Index (DGEN) shed 36 points to close at 2900.05, a two-week low.
Two other indices -- the All Shares Price Index (DSI) and the DSE-20 Index (DS20) shed 31.58 points and 24.29 points to close at 2447.22 and 2294.97 respectively.
Dominated by losers, the total turnover decreased below a two-week low to Tk 1.70 billion from previous day's Tk 2.15 billion.
Out of 220 issues traded on the day, 163 declined, 49 advanced and eight remained unchanged. The total market capitalisation came down below Tk 800 billion-mark to reach at Tk 796.54 billion from previous day's Tk 804.81 billion.
Commenting on the market, an analyst said, "Being confused over the loan disbursement by the merchant banks, the investors began to pull out of the market by selling shares of their stocks without making any profit as they expected to get loan after securities regulator's enhancement of margin loan for the merchant bankers."
"However, I would say the market is digesting the effect of all restrictions lifted by the Securities and Exchange Commission recently," he added.
He said to bring them (investors) back to the market, new issues needs to be floated in the market as prices of some issues are still overvalued, which also discourages the merchant banks to give loan to their clients.