Dhaka stocks see modest gain after bull-run
Saturday, 6 February 2010
FE Report
The Dhaka Stock Exchange (DSE) made a modest gain in the week ended Thursday after witnessing a bull-run over the past six straight weeks.
A series of moves taken by the Securities and Exchange Commission (SEC) to contain the upswing of the market, flooded with fresh funds, helped rein in the skyrocketing share prices.
During the week, the DSE benchmark General Index (DGEN) gained 43.56 points or 0.81 per cent to end at 5,434.04.
The broader All-shares Price Index (DSI) moved up 31.20 points or 0.70 per cent to 4,473.87 and the DSE-20 blue chip index rose 31.20 points or 0.70 per cent to 3,066.64.
The week's average daily turnover stood at Tk 15.54 billion¸ up by 3.12 per cent from the previous week's Tk 15.07 billion.
Out of the total 260 issues, 70 scrips advanced, 175 lost, four remained unchanged and 11 were not traded in the week.
On Monday, the SEC stepped in to tighten credit flow and suspend loans on purchase of 62 stocks, the price-earning (PE) ratios of which surpassed 50, saying the market became 'overheated'.
But the market gained sharply in the next session Tuesday as the investors shrugged off the stock market regulator's credit tightening measures.
On Wednesday the SEC announced a fresh measure tightening the credit flow - the second time in the week - for purchase of stocks in a bid to contain the runaway market.
The SEC measure lowered the margin loan to 1:1, from 1:1.5, triggering the DGEN index to fall by two per cent on the day, the steepest in six months.
"The market is flooded with funds. So, curbing loan margin will not be effective. The regulator should, instead, take steps to bring more companies into the market," said a fund manger.
Grameenphone was the week's top turnover leader with shares worth Tk 4.49 billion traded.
It was followed by Beximco, AB Bank, Prime Bank, Southeast Bank, Bextex, Lankabangla Finance, Premier Bank, Beximco Pharma and Titas Gas.
The week's leading gainers were Standard Ceramic, Exim Bank, Gemini Sea Food, United Leasing, ICB AMCL 1st Mutual Fund, Southeast Bank, Mercantile Bank, Northern General Insurance Company, Shahjalal Islami Bank and Eastern Bank.
The Dhaka Stock Exchange (DSE) made a modest gain in the week ended Thursday after witnessing a bull-run over the past six straight weeks.
A series of moves taken by the Securities and Exchange Commission (SEC) to contain the upswing of the market, flooded with fresh funds, helped rein in the skyrocketing share prices.
During the week, the DSE benchmark General Index (DGEN) gained 43.56 points or 0.81 per cent to end at 5,434.04.
The broader All-shares Price Index (DSI) moved up 31.20 points or 0.70 per cent to 4,473.87 and the DSE-20 blue chip index rose 31.20 points or 0.70 per cent to 3,066.64.
The week's average daily turnover stood at Tk 15.54 billion¸ up by 3.12 per cent from the previous week's Tk 15.07 billion.
Out of the total 260 issues, 70 scrips advanced, 175 lost, four remained unchanged and 11 were not traded in the week.
On Monday, the SEC stepped in to tighten credit flow and suspend loans on purchase of 62 stocks, the price-earning (PE) ratios of which surpassed 50, saying the market became 'overheated'.
But the market gained sharply in the next session Tuesday as the investors shrugged off the stock market regulator's credit tightening measures.
On Wednesday the SEC announced a fresh measure tightening the credit flow - the second time in the week - for purchase of stocks in a bid to contain the runaway market.
The SEC measure lowered the margin loan to 1:1, from 1:1.5, triggering the DGEN index to fall by two per cent on the day, the steepest in six months.
"The market is flooded with funds. So, curbing loan margin will not be effective. The regulator should, instead, take steps to bring more companies into the market," said a fund manger.
Grameenphone was the week's top turnover leader with shares worth Tk 4.49 billion traded.
It was followed by Beximco, AB Bank, Prime Bank, Southeast Bank, Bextex, Lankabangla Finance, Premier Bank, Beximco Pharma and Titas Gas.
The week's leading gainers were Standard Ceramic, Exim Bank, Gemini Sea Food, United Leasing, ICB AMCL 1st Mutual Fund, Southeast Bank, Mercantile Bank, Northern General Insurance Company, Shahjalal Islami Bank and Eastern Bank.