Dhaka stocks rebound sharply
Tuesday, 15 March 2011
FE Report
Dhaka stocks strongly rebounded Monday with all indices gained sharply following a clarification over the latest progress of proposed Tk 50 billion Bangladesh Fund (BF). Market plunged massively on Sunday after a report that the formation of BF came under a cloud. However, it was denied by the Managing Director of Investment Corporation of Bangladesh (ICB). The ICB clarification sparked the market rebound Monday and the benchmark DSE General Index (DGEN), the main gauge of the DSE rose 4.50 per cent or 278.46 points to peg at 6,457.98. The broader DSE All Shares Price Index (DSI) clocked at 5,346.45 up by 4.46 per cent or 228.39 points. The DSE-20, the blue chips index rose 3.86 per cent or 154.32 points to 4,156.24. Though the market witnessed heavy fluctuation at the initial hour of the day's trading, it became almost stable from the mid-session as the investors gained confidence on the market. As soon as the trading floor opened at 11-00 am, investors started buying shares and within five minutes DGEN gained more than 210 points. However, it started moving downwards immediately after the quick rise and lost 70 points at about 11.30am. After that it gained steadily and finally closed 278.46 points higher. Almost all the issues gained on the day as out of 254 issues traded, 239 advanced, only 12 declined and three remained unchanged. Ahmad Rashid Lali, managing director of Rashid Investment Services said the overall market situation is good and it rebounded due to strong buying pressure. However, he said, the only problem is that when the market rises, almost all the issues mark rise and there seems to be no sellers across the trading board, and when the index goes down, all the issues started to dip. "This culture should be changed and investors should book profit and re-invest in the market," Mr Rashid said. On the day, a total of 99.88 million shares changed hands which were 122.11 million in the previous session. The trade deals decreased to 206,660 against 250,779 in the previous session. However, the total turnover declined and stood at Tk 10.59 billion in value terms, which was Tk 12.67 billion in the previous session. The market capitalization increased to Tk 2893.52 billion against Tk 2784.33 billion in the previous session. All sectors including banking, NBFIs, insurance, telecommunications and pharmaceuticals, fuel and power gained heavily on the day. In the banking sector, 27 out of 30 gained while all 21 NBFI issues advanced. In the insurance sector, all the 44 issues marked rise and all 11 went up in the fuel and power sector on the day. Banking sector gained 3.95 per cent, NBFIs 4.21 per cent, telecommunications 7.03 per cent, pharmaceuticals 2.76 per cent and fuel and power 3.88 per cent, mutual fund 4.21 per cent, general insurance 7.19 per cent, life insurance 5.26 per cent, cement 5.72 per cent and ceramics 5.48 per cent on the day. People's Leasing emerged as the top turnover leader with shares worth Tk 522.39 million changing hands. The other turnover leaders were Beximco Limited, Bextex Limited, Aftab Automobiles, United Airways, Maksons Spinning, Pubali Bank, Union Capital, Uttara Bank and Shinepukur Ceramics. Dhaka Dying was the top gainer of the day posting a rise of 10 per cent followed by Active Fine Chemicals, Federal Insurance, Keya Detergents, CMC Kamal, Quasem Drycell, BD Welding, RN Spinning, Malek Spinning and BD Finance. The day's top losers included ONE Bank, Uttara Bank, Rahim Textile, BSC, Samorita Hospital, Reckitt Benckiser, Usmania Glass, First ICB, BATBC and Zeal Bangla Sugar Mill.
Dhaka stocks strongly rebounded Monday with all indices gained sharply following a clarification over the latest progress of proposed Tk 50 billion Bangladesh Fund (BF). Market plunged massively on Sunday after a report that the formation of BF came under a cloud. However, it was denied by the Managing Director of Investment Corporation of Bangladesh (ICB). The ICB clarification sparked the market rebound Monday and the benchmark DSE General Index (DGEN), the main gauge of the DSE rose 4.50 per cent or 278.46 points to peg at 6,457.98. The broader DSE All Shares Price Index (DSI) clocked at 5,346.45 up by 4.46 per cent or 228.39 points. The DSE-20, the blue chips index rose 3.86 per cent or 154.32 points to 4,156.24. Though the market witnessed heavy fluctuation at the initial hour of the day's trading, it became almost stable from the mid-session as the investors gained confidence on the market. As soon as the trading floor opened at 11-00 am, investors started buying shares and within five minutes DGEN gained more than 210 points. However, it started moving downwards immediately after the quick rise and lost 70 points at about 11.30am. After that it gained steadily and finally closed 278.46 points higher. Almost all the issues gained on the day as out of 254 issues traded, 239 advanced, only 12 declined and three remained unchanged. Ahmad Rashid Lali, managing director of Rashid Investment Services said the overall market situation is good and it rebounded due to strong buying pressure. However, he said, the only problem is that when the market rises, almost all the issues mark rise and there seems to be no sellers across the trading board, and when the index goes down, all the issues started to dip. "This culture should be changed and investors should book profit and re-invest in the market," Mr Rashid said. On the day, a total of 99.88 million shares changed hands which were 122.11 million in the previous session. The trade deals decreased to 206,660 against 250,779 in the previous session. However, the total turnover declined and stood at Tk 10.59 billion in value terms, which was Tk 12.67 billion in the previous session. The market capitalization increased to Tk 2893.52 billion against Tk 2784.33 billion in the previous session. All sectors including banking, NBFIs, insurance, telecommunications and pharmaceuticals, fuel and power gained heavily on the day. In the banking sector, 27 out of 30 gained while all 21 NBFI issues advanced. In the insurance sector, all the 44 issues marked rise and all 11 went up in the fuel and power sector on the day. Banking sector gained 3.95 per cent, NBFIs 4.21 per cent, telecommunications 7.03 per cent, pharmaceuticals 2.76 per cent and fuel and power 3.88 per cent, mutual fund 4.21 per cent, general insurance 7.19 per cent, life insurance 5.26 per cent, cement 5.72 per cent and ceramics 5.48 per cent on the day. People's Leasing emerged as the top turnover leader with shares worth Tk 522.39 million changing hands. The other turnover leaders were Beximco Limited, Bextex Limited, Aftab Automobiles, United Airways, Maksons Spinning, Pubali Bank, Union Capital, Uttara Bank and Shinepukur Ceramics. Dhaka Dying was the top gainer of the day posting a rise of 10 per cent followed by Active Fine Chemicals, Federal Insurance, Keya Detergents, CMC Kamal, Quasem Drycell, BD Welding, RN Spinning, Malek Spinning and BD Finance. The day's top losers included ONE Bank, Uttara Bank, Rahim Textile, BSC, Samorita Hospital, Reckitt Benckiser, Usmania Glass, First ICB, BATBC and Zeal Bangla Sugar Mill.