Dhaka stocks tumble amid slash in loan margin ratio
Tuesday, 7 October 2008
FE Report
Dhaka stocks tumbled Monday amid the reduction of loan margin ratio by top financial institutions.
All the market barometers-DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 - shed 73 points, 60.47 points and 50.92 points respectively to close at 2928.37, 2426.39 and 2435.59.
The DGEN slump was the single biggest fall in the last three months.
Market sources said the investors remained cautious on the day with the selling pressure mounted because of slash of loan margin ratio by AB Bank and other top institutions.
AB Bank reduced the loan margin ratio to 0.85:1 from 1:1.
AB Bank and other institutions slashed the loan margin ratio as the benchmark index closed to 3000-mark Sunday with unusual rise of a good number of issues in recent period.
Profit taking and the psychological barrier after DGEN crossing 3000-mark in previous day also affected the Monday's trading.
"The quarterly interest charge against the loans borrowed by the investors came into effect Sunday and it also affected Monday's trading," a DSE source told the FE.
A huge turnover worth Tk 5.11 billion, however was a positive signal for the investors. The turnover crossed Tk 5 billion-mark after four months.
The turnover on the Dhaka Stock Exchange (DSE) surged to the second biggest height of Tk 5.11 billion on the back of hefty share transactions of Beximco Pharma and Beximco Limited. The previous turnover record was Tk 5.50 billion set on June 8 this year.
The market moved to the negative territory as the investors have booked profit on the day after seventh straight session-rally and partly responsible for psychological barrier, according to the market sources.
Around 52 per cent institutional investors and the rest small investors participated in the day's trading, a source in the DSE said.
The 3,000-mark of the main index remained the psychological barrier in the mind of investors who might think the market might drop from that level, said a market player, preferring not to be named.
Surprisingly, seven out of ten top gainers on the day came from badly performed Z-category companies.
"However, this is not the unusual fall as the market gained for the last seven consecutive sessions," a stock dealer said adding but the position of low rated Z-category issues on top of the day's major gainers is a concern.
Losers took a strong lead over gainers as out of 230 issues traded, 159 declined, 65 advanced and six remained unchanged.
Market capitalisation fell slightly to Tk 1.01 trillion from Tk 1.03 trillion on Sunday.
Beximco Pharma was the top turnover leader with shares worth Tk 478.76 million changing hands, followed by Beximco Limited Tk 349.98 million, Lankabangla Finance Limited Tk294.99, Titas Gas Tk276.59 million and ACI Tk 273.57 million traded.
Other turnover leaders were S Alam Cold Rolled Steel Ltd, Summit Power, Grameens2 Mutual Fund, Union Capital and Keya Cosmetics.
Stock prices of the Bionic Food had the biggest gain of 20 per cent, followed by Modern Cement 19.04 per cent, Saleh Carpet 12.76 per cent, Daffodil Computers 12.55 per cent, Shyampur Sugar 10.86 per cent, Alltex Industries Ltd 10.73 per cent, Alpha Tobacco and Maq Enterprise 10 per cent each, Sajib Knitting 9.67 per cent and, Hakkani Pulp and Paper 9.46 per cent.
Top ten losers were Shinepukur, Beximco Limited, Beximco Fisheries, Glaxo SmithKline, Pioneer Insurance, Excelsior Shoes, Rupali Bank, BD Luggage, 1st BSRS and Pragati Life Insurance.
Dhaka stocks tumbled Monday amid the reduction of loan margin ratio by top financial institutions.
All the market barometers-DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 - shed 73 points, 60.47 points and 50.92 points respectively to close at 2928.37, 2426.39 and 2435.59.
The DGEN slump was the single biggest fall in the last three months.
Market sources said the investors remained cautious on the day with the selling pressure mounted because of slash of loan margin ratio by AB Bank and other top institutions.
AB Bank reduced the loan margin ratio to 0.85:1 from 1:1.
AB Bank and other institutions slashed the loan margin ratio as the benchmark index closed to 3000-mark Sunday with unusual rise of a good number of issues in recent period.
Profit taking and the psychological barrier after DGEN crossing 3000-mark in previous day also affected the Monday's trading.
"The quarterly interest charge against the loans borrowed by the investors came into effect Sunday and it also affected Monday's trading," a DSE source told the FE.
A huge turnover worth Tk 5.11 billion, however was a positive signal for the investors. The turnover crossed Tk 5 billion-mark after four months.
The turnover on the Dhaka Stock Exchange (DSE) surged to the second biggest height of Tk 5.11 billion on the back of hefty share transactions of Beximco Pharma and Beximco Limited. The previous turnover record was Tk 5.50 billion set on June 8 this year.
The market moved to the negative territory as the investors have booked profit on the day after seventh straight session-rally and partly responsible for psychological barrier, according to the market sources.
Around 52 per cent institutional investors and the rest small investors participated in the day's trading, a source in the DSE said.
The 3,000-mark of the main index remained the psychological barrier in the mind of investors who might think the market might drop from that level, said a market player, preferring not to be named.
Surprisingly, seven out of ten top gainers on the day came from badly performed Z-category companies.
"However, this is not the unusual fall as the market gained for the last seven consecutive sessions," a stock dealer said adding but the position of low rated Z-category issues on top of the day's major gainers is a concern.
Losers took a strong lead over gainers as out of 230 issues traded, 159 declined, 65 advanced and six remained unchanged.
Market capitalisation fell slightly to Tk 1.01 trillion from Tk 1.03 trillion on Sunday.
Beximco Pharma was the top turnover leader with shares worth Tk 478.76 million changing hands, followed by Beximco Limited Tk 349.98 million, Lankabangla Finance Limited Tk294.99, Titas Gas Tk276.59 million and ACI Tk 273.57 million traded.
Other turnover leaders were S Alam Cold Rolled Steel Ltd, Summit Power, Grameens2 Mutual Fund, Union Capital and Keya Cosmetics.
Stock prices of the Bionic Food had the biggest gain of 20 per cent, followed by Modern Cement 19.04 per cent, Saleh Carpet 12.76 per cent, Daffodil Computers 12.55 per cent, Shyampur Sugar 10.86 per cent, Alltex Industries Ltd 10.73 per cent, Alpha Tobacco and Maq Enterprise 10 per cent each, Sajib Knitting 9.67 per cent and, Hakkani Pulp and Paper 9.46 per cent.
Top ten losers were Shinepukur, Beximco Limited, Beximco Fisheries, Glaxo SmithKline, Pioneer Insurance, Excelsior Shoes, Rupali Bank, BD Luggage, 1st BSRS and Pragati Life Insurance.