Dhaka stocks rebound amid low turnover
Thursday, 5 May 2011
FE Report
The Dhaka Stock Exchange (DSE) experienced Wednesday nearly a four-month low turnover though the market gained 107 points following the news about the 'Bangladesh Fund' getting the final nod from the securities regulator. The daily turnover plunged to nearly a four-month low and stood at Tk 3.81 billion in value terms, down by 15.8 per cent compared to previous session. On January 25, total turnover dipped to its lowest level in recent years at Tk 2.1 billion as most of the scrip touched the lower circuit breaker limit. The market opened with a positive mood in the morning following the news of the BF. The momentum continued until the closure amid moderate ups and downs and finally closed 107 points higher. The benchmark DSE General Index (DGEN), the yardstick of the DSE, rose 107.38 points or 1.83 per cent to close at 5,973.09. The broader All Shares Price Index (DSI) ended at 4,966.82, rising 87.43 points or 1.79 per cent. The DSE-20 index comprising blue-chip shares soared 36.18 points or 0.95 per cent to 3,837.30. Mr Ahmad Rashid Lali, managing director of Rashid Investment Services, said the market is now in the nervous mode as big and institutional investors are out of the market following the finance minister's announcement of some action plan including re-investigation of big volume traders. "Though the index rise sharply on the day, the market still is in nervous territory following the finance minister's announcement of re-investigation of big volume traders. As a result, big traders are not active in the market and turnover fell remarkably," said Mr Ahmad, who is also a DSE director. "Requirement of TIN (Tax-payers Identification Number) to open a new beneficiary owner (BO) accounts also a factor behind the present volatility," Mr Ahmad added. Most of the issues traded on the day advanced in prices as most of the investors preferred to buy shares in the available attractive price. According to the media report, BF will invest in the company which price earning (PE) ratio is maximum 20. Out of total 243 issues traded on the day, 216 advanced, only 26 declined and one remained unchanged. Share prices of all sectors advanced on the day with the insurance sector emerged as the highest gainer. General insurance and life insurance gained 3.71 per cent and 1.16 per cent respectively on the day. Among the notable gainers-banking sector gained 2.60 per cent, while fuel and power 1.14 per cent, pharmaceuticals 1.66 per cent, mutual fund 2.35 per cent, cement 2.09 per cent, textile 2.57 per cent, tannery 0.18 per cent and ceramics 2.33 per cent on the day. Beximco Limited topped the turnover list with shares worth Tk 167.86 million changed hands. The other turnover leaders were Bextex, DESCO, RN Spinning, Titas Gas, National Bank, BSRM Steels, United Airways, Malek Spinning and Square Pharma. A total of 41.53 million shares changed hands on the day against 54.56 million in the previous session. The trade deals also came down to 96,372 against Tuesday's 109,921. However, total market capitalisation increased slightly and stood at Tk 2742.49 billion against Tk 2,702.90 billion in the previous session. Republic Insurance was the day's top gainer posting 7.37 per cent rise. It was followed by Glaxo SmithKline, BIFC, Sonargaon Textile, Agrani Insurance, Shajalal Islami Bank, Dhaka Insurance, Peoples Insurance, Ibn Sina and Aramit Cement. Uttara Finance was the day's top loser and the company lost 31.44 per cent following its price adjustment after record date. It was followed by Central Insurance, Apex Spinning, Savar Refractories, Fifth ICB, DESCO, Samorita Hospital, Gemini Sea Food, Monno Jute Stafflers and Midas Financing.
The Dhaka Stock Exchange (DSE) experienced Wednesday nearly a four-month low turnover though the market gained 107 points following the news about the 'Bangladesh Fund' getting the final nod from the securities regulator. The daily turnover plunged to nearly a four-month low and stood at Tk 3.81 billion in value terms, down by 15.8 per cent compared to previous session. On January 25, total turnover dipped to its lowest level in recent years at Tk 2.1 billion as most of the scrip touched the lower circuit breaker limit. The market opened with a positive mood in the morning following the news of the BF. The momentum continued until the closure amid moderate ups and downs and finally closed 107 points higher. The benchmark DSE General Index (DGEN), the yardstick of the DSE, rose 107.38 points or 1.83 per cent to close at 5,973.09. The broader All Shares Price Index (DSI) ended at 4,966.82, rising 87.43 points or 1.79 per cent. The DSE-20 index comprising blue-chip shares soared 36.18 points or 0.95 per cent to 3,837.30. Mr Ahmad Rashid Lali, managing director of Rashid Investment Services, said the market is now in the nervous mode as big and institutional investors are out of the market following the finance minister's announcement of some action plan including re-investigation of big volume traders. "Though the index rise sharply on the day, the market still is in nervous territory following the finance minister's announcement of re-investigation of big volume traders. As a result, big traders are not active in the market and turnover fell remarkably," said Mr Ahmad, who is also a DSE director. "Requirement of TIN (Tax-payers Identification Number) to open a new beneficiary owner (BO) accounts also a factor behind the present volatility," Mr Ahmad added. Most of the issues traded on the day advanced in prices as most of the investors preferred to buy shares in the available attractive price. According to the media report, BF will invest in the company which price earning (PE) ratio is maximum 20. Out of total 243 issues traded on the day, 216 advanced, only 26 declined and one remained unchanged. Share prices of all sectors advanced on the day with the insurance sector emerged as the highest gainer. General insurance and life insurance gained 3.71 per cent and 1.16 per cent respectively on the day. Among the notable gainers-banking sector gained 2.60 per cent, while fuel and power 1.14 per cent, pharmaceuticals 1.66 per cent, mutual fund 2.35 per cent, cement 2.09 per cent, textile 2.57 per cent, tannery 0.18 per cent and ceramics 2.33 per cent on the day. Beximco Limited topped the turnover list with shares worth Tk 167.86 million changed hands. The other turnover leaders were Bextex, DESCO, RN Spinning, Titas Gas, National Bank, BSRM Steels, United Airways, Malek Spinning and Square Pharma. A total of 41.53 million shares changed hands on the day against 54.56 million in the previous session. The trade deals also came down to 96,372 against Tuesday's 109,921. However, total market capitalisation increased slightly and stood at Tk 2742.49 billion against Tk 2,702.90 billion in the previous session. Republic Insurance was the day's top gainer posting 7.37 per cent rise. It was followed by Glaxo SmithKline, BIFC, Sonargaon Textile, Agrani Insurance, Shajalal Islami Bank, Dhaka Insurance, Peoples Insurance, Ibn Sina and Aramit Cement. Uttara Finance was the day's top loser and the company lost 31.44 per cent following its price adjustment after record date. It was followed by Central Insurance, Apex Spinning, Savar Refractories, Fifth ICB, DESCO, Samorita Hospital, Gemini Sea Food, Monno Jute Stafflers and Midas Financing.