Dhaka stocks tumble after five-day rally
Friday, 23 July 2010
FE Report
Dhaka stocks tumbled Thursday after the securities regulator set exposure limit for the investors, breaking the five-day consecutive rally.
The market nose-dived in the morning but struggled to recover in mid session before losing more than one per cent at close.
The Dhaka Stock Exchange General Index (DGEN), the yardstick of the market, plummeted 1.38 per cent or 90.23 points-- its second biggest fall in the last one month-- to close at 6404.96 from previous session's all time high of 6495.20.
The broader All Shares Price Index (DSI) ended at 5331.95, shedding 1.27 per cent or 68.78 points. The DSE 20 index comprising blue chip shares fell 0.99 per cent or 37.65 points to 3763.55.
"Investors reacted negatively to the regulatory move, sending the market into the negative territory," said Ahmed Rashid, managing director of the Rashid Investment Services Ltd.
The Securities and Exchange Commission put cap Wednesday on the single-borrower exposure of the merchant banks and the brokerage houses to streamline the stock market.
The exposure limit has been set at Tk 100 million in the case of merchant banks and Tk 50 million for brokerage houses. The new decision on exposure limit will come into effect from Sunday.
Turnover dropped slightly 1.10 per cent to Tk 17.84 billion over the previous session's Tk 18.03 billion. Out of 246 issues traded, 78 gained, 167 lost and one remained unchanged.
All the major sectors declined with banks losing 1.82 per cent, non-banking financial institutions 1.82 per cent and energy 1.55 per cent.
Telecommunications, pharmaceuticals, insurers and cement sectors also closed negative. However, mutual funds gained 1.77 per cent and ceramic 0.45 per cent.
Titas Gas continued as the turnover leader with shares worth Tk 1.27 billion changing hands on the day.
Dhaka stocks tumbled Thursday after the securities regulator set exposure limit for the investors, breaking the five-day consecutive rally.
The market nose-dived in the morning but struggled to recover in mid session before losing more than one per cent at close.
The Dhaka Stock Exchange General Index (DGEN), the yardstick of the market, plummeted 1.38 per cent or 90.23 points-- its second biggest fall in the last one month-- to close at 6404.96 from previous session's all time high of 6495.20.
The broader All Shares Price Index (DSI) ended at 5331.95, shedding 1.27 per cent or 68.78 points. The DSE 20 index comprising blue chip shares fell 0.99 per cent or 37.65 points to 3763.55.
"Investors reacted negatively to the regulatory move, sending the market into the negative territory," said Ahmed Rashid, managing director of the Rashid Investment Services Ltd.
The Securities and Exchange Commission put cap Wednesday on the single-borrower exposure of the merchant banks and the brokerage houses to streamline the stock market.
The exposure limit has been set at Tk 100 million in the case of merchant banks and Tk 50 million for brokerage houses. The new decision on exposure limit will come into effect from Sunday.
Turnover dropped slightly 1.10 per cent to Tk 17.84 billion over the previous session's Tk 18.03 billion. Out of 246 issues traded, 78 gained, 167 lost and one remained unchanged.
All the major sectors declined with banks losing 1.82 per cent, non-banking financial institutions 1.82 per cent and energy 1.55 per cent.
Telecommunications, pharmaceuticals, insurers and cement sectors also closed negative. However, mutual funds gained 1.77 per cent and ceramic 0.45 per cent.
Titas Gas continued as the turnover leader with shares worth Tk 1.27 billion changing hands on the day.