Dhaka stocks fall for third day
Wednesday, 27 April 2011
FE Report
Dhaka stocks Tuesday plummeted for the third straight session due to lack of confidence among the investors and absence of institutional buyers as well in the capital market. The daily turnover also declined substantially to Tk 4.47 billion in value terms, down by 27 per cent from Monday's Tk 6.13 billion. It was the lowest turnover in nearly two months since March 1. The institutional and big investors remained inactive centring share market scam report and the current bearish market trend. The present liquidity crisis in the banking system also affects the capital market's turnover value, dealers said. The market opened with a negative note, but it went into positive zone and gained 100 points within half an hour of the trade. After that it swung between positive and negative territories several times throughout the whole session and finally closed 57 points lower. The benchmark general index of the Dhaka Stock Exchange (DSE) shed marginally by 57.67 points or 0.98 per cent and closed at 5,806.31. The DGEN shed more than 385 points in the consecutive three sessions in the week. The broader DSE All Shares Price Index (DSI) ended at 4830.42, shedding 1.0 per cent or 48.88 points. The DSE-20 including blue chips index dropped 0.24 per cent or 9.11 points to 3710.56. "Investors are shaky and they have lost their confidence because of the ongoing bearish trend of the market. The institutional and big investors also remain inactive in the market," said Ahmad Rashid Lali, managing director of Rashid Investment Services. "The institutional and big investors, who play an important role in keeping the market vibrant, have followed the 'wait and see' policy and they want to see the final outcome of the probe report, as a result, the market is now in a depression mood," said Mr Ahmad, who is also a director of the DSE. The money market suffers liquidity crisis which ultimately affects the capital market so the turnover value continued to decline, he added. Most of the private sector commercial banks are now offering interest rates ranging between 12 per cent and 14 per cent in the fixed deposit which prompt many of the small investors to pour money in the banks instead of capital market. Meanwhile, some of the investors demanded of the government to clear its position about the share market scam report. "If the government clears its position in connection with the probe committee's report, small investors will regain some confidence, but it is very unfortunate that the government is yet to clear its position on the probe committee report" said Mr Faisal, an investor. A total of 47.28 million shares changed hands on the day against 61.31 million in the previous session. Total trade deals also declined to 109,547 against 137,812 in the previous session. Total market capitalisation stood at Tk 2653.82 billion against Tk 2,672.98 billion in the previous session. The losers took strong lead over the gainers as out of 253 issues traded, only 88 advanced, 154 declined and 11 remained unchanged. Share prices of almost all major sectors lost on the day. Among the major sectors, banking sector lost 0.52 per cent, NBFIs 1.28 per cent, pharmaceuticals 0.96 per cent and the fuel and power sector lost 0.65 per cent.
Dhaka stocks Tuesday plummeted for the third straight session due to lack of confidence among the investors and absence of institutional buyers as well in the capital market. The daily turnover also declined substantially to Tk 4.47 billion in value terms, down by 27 per cent from Monday's Tk 6.13 billion. It was the lowest turnover in nearly two months since March 1. The institutional and big investors remained inactive centring share market scam report and the current bearish market trend. The present liquidity crisis in the banking system also affects the capital market's turnover value, dealers said. The market opened with a negative note, but it went into positive zone and gained 100 points within half an hour of the trade. After that it swung between positive and negative territories several times throughout the whole session and finally closed 57 points lower. The benchmark general index of the Dhaka Stock Exchange (DSE) shed marginally by 57.67 points or 0.98 per cent and closed at 5,806.31. The DGEN shed more than 385 points in the consecutive three sessions in the week. The broader DSE All Shares Price Index (DSI) ended at 4830.42, shedding 1.0 per cent or 48.88 points. The DSE-20 including blue chips index dropped 0.24 per cent or 9.11 points to 3710.56. "Investors are shaky and they have lost their confidence because of the ongoing bearish trend of the market. The institutional and big investors also remain inactive in the market," said Ahmad Rashid Lali, managing director of Rashid Investment Services. "The institutional and big investors, who play an important role in keeping the market vibrant, have followed the 'wait and see' policy and they want to see the final outcome of the probe report, as a result, the market is now in a depression mood," said Mr Ahmad, who is also a director of the DSE. The money market suffers liquidity crisis which ultimately affects the capital market so the turnover value continued to decline, he added. Most of the private sector commercial banks are now offering interest rates ranging between 12 per cent and 14 per cent in the fixed deposit which prompt many of the small investors to pour money in the banks instead of capital market. Meanwhile, some of the investors demanded of the government to clear its position about the share market scam report. "If the government clears its position in connection with the probe committee's report, small investors will regain some confidence, but it is very unfortunate that the government is yet to clear its position on the probe committee report" said Mr Faisal, an investor. A total of 47.28 million shares changed hands on the day against 61.31 million in the previous session. Total trade deals also declined to 109,547 against 137,812 in the previous session. Total market capitalisation stood at Tk 2653.82 billion against Tk 2,672.98 billion in the previous session. The losers took strong lead over the gainers as out of 253 issues traded, only 88 advanced, 154 declined and 11 remained unchanged. Share prices of almost all major sectors lost on the day. Among the major sectors, banking sector lost 0.52 per cent, NBFIs 1.28 per cent, pharmaceuticals 0.96 per cent and the fuel and power sector lost 0.65 per cent.