Dhaka stocks continue to fall for sixth session
FE Report | Tuesday, 22 July 2008
Dhaka stocks continued to fall for the sixth session in a row Monday with the turnover crossing Tk 4.0 billion-mark after a gap of six weeks, thanks to the huge trading in shares of UCBL, Beximco Pharma and Square Pharma.
Trading at the Dhaka Stock Exchange (DSE), however, was in the positive territory for the first two hours, pushing the benchmark up more than 37 points. Later, it started to fall drastically when the corporate declaration of the Square Pharma hit the market in mid-session.
All the market barometers -- the benchmark DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 Index (DS20), blue chips fell 48.59 points, 30.27 points and 14.47 points to end at 2810.36, 2453.13 and 2585.77 respectively.
The corporate declaration of the Square Pharma, which was lower than expected, and persistent negative sentiment among the investors sent the market to the red on the day, according to the market operators.
Talking to the FE, chairman of the Securities and Exchange Commission (SEC) Faruq Ahmad Siddiqi said, "The market is going through price correction but not all sectors saw this correction. The market is still overvalued, which is not friendly for the investors, specially for the small ones."
He again called upon the investors not to panic. "Please, don't indulge in panic selling on the basis of rumour as the market remains positive."
"Take a look at today's huge turnover that proves the investors are in the market," SEC chief said adding only intelligent investors are purchasing stocks taking opportunity of lower price.
He said, "The investors should bear in their mind that every market should have a full stop. It will be wrong to think that the market will continue to rise and to fall. "
The board of directors of Square Pharma has recommended 40 per cent cash dividend and 35 per cent stock dividend for the year ended March 31, 2008.
"But this declaration could not satisfy the investors that is why they disposed off Sqaure Pharma stocks," said a stock broker.
The total turnover rose to Tk 4.06 billion since June 9, against previous day's Tk 3.07 billion.
Not a single share of the Rupali Bank Limited that resumed trading after over eight months Sunday, was traded for the second consecutive day. The seller of the largely state-owned bank offered Tk 2686.50 per share.
The losers outshined the gainers as out of 231 issues traded, 46 gained, 174 declined and eleven remained unchanged. The total market capitalisation, however, came down to Tk 954.33 billion from Tk 963.74 billion previously.
Share trading of the UCBL, which remained halted due to price volatility in its share prices centering a judgment regarding the bank's pending AGMs, resumed on the day after a gap of nearly six-week in the spot market.
The UCBL was the top turnover leader with shares worth Tk 488.12 million traded, followed by Beximco Pharma Tk 422.31 million, Square Pharma Tk 296.39 million, ACI Tk 266.62 million, BATBC Tk 238.13 million and Keya Cosmetics Tk 188.41 million changing hands on the day.
Stock prices of the UCBL had the biggest gain of 18.13 per cent, followed by fifth ICB Mutual Fund of 14.43 per cent, Apex Tannery 12.45 per cent, Pragati Insurance 12.58 per cent, Agrani Insurance 11.31 per cent and Shinepukur Holdings 11.20 per cent.
Stock prices of the state-run gas distribution company Titas rose 0.63 per cent to close at Tk 318.00 per share.
In its 14th trading day, 195,950 shares out of total 2,141,728 were sold on both the stock exchanges - DSE and CSE, according to the ICB, the sales agent. The company will have to offload around 8.5 million shares in 30 trading days since its debut as per regulations.
The top gainers were BATBC, BD Thai, Saiham Textile, Olympic, Progressive Life Insurance, ACI and Bata Shoe.
Trading at the Dhaka Stock Exchange (DSE), however, was in the positive territory for the first two hours, pushing the benchmark up more than 37 points. Later, it started to fall drastically when the corporate declaration of the Square Pharma hit the market in mid-session.
All the market barometers -- the benchmark DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 Index (DS20), blue chips fell 48.59 points, 30.27 points and 14.47 points to end at 2810.36, 2453.13 and 2585.77 respectively.
The corporate declaration of the Square Pharma, which was lower than expected, and persistent negative sentiment among the investors sent the market to the red on the day, according to the market operators.
Talking to the FE, chairman of the Securities and Exchange Commission (SEC) Faruq Ahmad Siddiqi said, "The market is going through price correction but not all sectors saw this correction. The market is still overvalued, which is not friendly for the investors, specially for the small ones."
He again called upon the investors not to panic. "Please, don't indulge in panic selling on the basis of rumour as the market remains positive."
"Take a look at today's huge turnover that proves the investors are in the market," SEC chief said adding only intelligent investors are purchasing stocks taking opportunity of lower price.
He said, "The investors should bear in their mind that every market should have a full stop. It will be wrong to think that the market will continue to rise and to fall. "
The board of directors of Square Pharma has recommended 40 per cent cash dividend and 35 per cent stock dividend for the year ended March 31, 2008.
"But this declaration could not satisfy the investors that is why they disposed off Sqaure Pharma stocks," said a stock broker.
The total turnover rose to Tk 4.06 billion since June 9, against previous day's Tk 3.07 billion.
Not a single share of the Rupali Bank Limited that resumed trading after over eight months Sunday, was traded for the second consecutive day. The seller of the largely state-owned bank offered Tk 2686.50 per share.
The losers outshined the gainers as out of 231 issues traded, 46 gained, 174 declined and eleven remained unchanged. The total market capitalisation, however, came down to Tk 954.33 billion from Tk 963.74 billion previously.
Share trading of the UCBL, which remained halted due to price volatility in its share prices centering a judgment regarding the bank's pending AGMs, resumed on the day after a gap of nearly six-week in the spot market.
The UCBL was the top turnover leader with shares worth Tk 488.12 million traded, followed by Beximco Pharma Tk 422.31 million, Square Pharma Tk 296.39 million, ACI Tk 266.62 million, BATBC Tk 238.13 million and Keya Cosmetics Tk 188.41 million changing hands on the day.
Stock prices of the UCBL had the biggest gain of 18.13 per cent, followed by fifth ICB Mutual Fund of 14.43 per cent, Apex Tannery 12.45 per cent, Pragati Insurance 12.58 per cent, Agrani Insurance 11.31 per cent and Shinepukur Holdings 11.20 per cent.
Stock prices of the state-run gas distribution company Titas rose 0.63 per cent to close at Tk 318.00 per share.
In its 14th trading day, 195,950 shares out of total 2,141,728 were sold on both the stock exchanges - DSE and CSE, according to the ICB, the sales agent. The company will have to offload around 8.5 million shares in 30 trading days since its debut as per regulations.
The top gainers were BATBC, BD Thai, Saiham Textile, Olympic, Progressive Life Insurance, ACI and Bata Shoe.