Dhaka stocks end flat, turnover dips again

FE Report Dhaka stocks closed flat Thursday amid extreme volatile trading with turnover declined substantially, a day after the announcement of 21-point stock market rejuvenation package, as most of the investors opted for observing the market situation. Market analysts said the investors were in cautious mood, as it was the first trading session after the announcement of the much-awaited stock market rejuvenation package. The market shot up more than 110 points in the first five minutes, as the traders were mostly buying stocks which have below 30 per cent sponsors-directors' holding. However, aggressive sell pressure from thereon forced the index to decline sharply and lost more than 80 points in the next 15 minutes. After that the DGEN fluctuated in positive and negative territories several times throughout the session and finally ended only 0.64 points higher. The benchmark general index of the DSE, the main gauge of the market, rose only 0.64 points or 0.01 per cent to close at 5,373.30. However, the broader DSE All Shares Price Index (DSI) went down by 0.53 points or 0.01 per cent to close at 4,495.53. The DSE-20 blue-chip index also plummeted 0.74 points or 0.02 per cent to close at 3,908.33. The day's turnover value declined to Tk 5.30 billion in value terms, down by 49.57 per cent, compared to Tk 10.51 billion in the previous session. Professor Salauddin Ahmed Khan, a finance teacher at the Dhaka University, said the investors are yet to get a clear idea about the package and its impact on the capital market and they opted for staying in the safe zone, observing the situation. "Most of the investors preferred to stay in safe zone and observe the market situation, as it was the first trading session after the SEC's announcement of rescue package for the stock market," Mr Khan, also former CEO of the DSE, said. However, he said the stock market rejuvenation package that was announced by the SEC Wednesday might bring positive result in the long run. Meanwhile, the small investors wanted proper implementation of the stock market rejuvenation package. A leader of the Bangladesh Share Investors Unity Council (BSIUC), a platform of small investors, said, "If the SEC implements the package properly, the market will be stable in the near future." Companies, whose sponsors-directors do not have 30 per cent shares, moved positively on the day, as the securities regulators made mandatory for sponsors-directors to hold at least 30 per cent shares of the company. Prices of most of the shares traded on the declined. Out of 253 issues traded, 93 advanced, 155 declined and five remained unchanged. A total of 68.72 million shares changed hands on the day against 141.57 million in the previous session. The trade deals also declined to 153,445 against Wednesday's 245,215. Total market capitalisation of the DSE declined to Tk 2,656.33 billion against Tk 2,654.44 billion in the previous session. Among the major sectors, telecommunications, fuel and power and banks advanced 1.59 per cent, 0.50 per cent and 0.38 per cent respectively, while NBFIs and pharmaceuticals declined 0.90 per cent and 0.20 per cent. City Bank topped the turnover chart with shares worth Tk 212.66 million changed hands, The other turnover leaders were Fu-Wang Ceramics, Beximco Limited, Grameenphone, Beximco Pharma, Mercantile Bank, Eastern Bank, Uttara Bank, UCBL and Social Islami Bank. Small capital IT company, In Tech Online Ltd. was the day's highest gainer, posting a rise of 9.78 per cent as its sponsors-directors hold only 2.56 per cent shares. It was followed by BDCOM Online, BD Autocars, Fu-Wang Ceramics, Agni System, Kay and Que, Monno Ceramics, Apex Tannery, Desh Garments and Bank Asia. The day's worst losers included Northern Jute Manufacturing Company, Miracle Industries, Gemini Sea Food, Orion Infusion, Dulamia Cotton, Anwar Galvanising, Ambee Pharma, Legacy Footwear, Samata Leather and Meghna Cement.