Dhaka stocks tumble due to panic selling spree
FE Report | Tuesday, 10 June 2008
Dhaka stocks tumbled Monday due to panic selling spree triggered by rumours that the securities regulator would take steps to cool down the overheated market.
The possibility of the Securities and Exchange Commission taking action created the impact at the very outset of the trade, pushing the benchmark Dhaka Stock Exchange (DSE) General Index (DGEN) down by more than 90 points in first hour of the trade.
Later, it slightly regained towards close of the trade on speculation that the commission might show leniency on their move.
The benchmark DGEN dropped 78.87 points to close at 3100.67, the second lowest fall this year since June 3 when it fell 88.86 points due to price adjustment of AB Bank.
Two other market barometers -- All Shares Price Index (DSI) and DSE-20 Index (DS20) -- also slid 63.41 points and 68.34 points to finish at 2630.02 and 2556.12 respectively.
The losers outshined the gainers as out of 243 issues traded, only 35 gained, 203 declined and five remained unchanged.
The news on SEC's possible measures to cool down the overheated market has sent the market into the red, according to the market operators.
The total turnover came down to Tk 4.32 billion against previous day's record Tk 5.50 billion.
The total market capitalisation also declined to Tk 885.18 billion against Tk 895.14 billion.
Energy issues, however, saw unusual rise on the day without any fundamental reason. "The two state-owned oil companies share prices whopped on the day for no other reason but manipulation," said a source in the market.
Stock prices of Jamuna Oil Company, the top gainer, posted a rise of 14.29 per cent and Meghna Petroleum Limited, second top gainer, 14.95 per cent. Jamuna Oil closed at Tk 230.30 per share and Meghna Petroleum Tk 220.60 per share.
AIMS First Mutual Fund was the top turnover leader with shares worth Tk 313.18 million traded and Beximco Pharma Tk 222.92 million traded. Other turnover leaders were Square Pharma, Grameen One Mutual Fund, S Alam Cold Roll Steels Limited, Lanka Bangla Finance, Jamuna Oil, Meghna Petroleum, BATBC and AB Bank.
Karnaphuli Insurance was the biggest loser with 14.42 per cent fall, followed by Midas Finance with 11.78 per cent, Fidelity Asset 11.49 per cent and Phoenix Insurance with 11.45 per cent.
The possibility of the Securities and Exchange Commission taking action created the impact at the very outset of the trade, pushing the benchmark Dhaka Stock Exchange (DSE) General Index (DGEN) down by more than 90 points in first hour of the trade.
Later, it slightly regained towards close of the trade on speculation that the commission might show leniency on their move.
The benchmark DGEN dropped 78.87 points to close at 3100.67, the second lowest fall this year since June 3 when it fell 88.86 points due to price adjustment of AB Bank.
Two other market barometers -- All Shares Price Index (DSI) and DSE-20 Index (DS20) -- also slid 63.41 points and 68.34 points to finish at 2630.02 and 2556.12 respectively.
The losers outshined the gainers as out of 243 issues traded, only 35 gained, 203 declined and five remained unchanged.
The news on SEC's possible measures to cool down the overheated market has sent the market into the red, according to the market operators.
The total turnover came down to Tk 4.32 billion against previous day's record Tk 5.50 billion.
The total market capitalisation also declined to Tk 885.18 billion against Tk 895.14 billion.
Energy issues, however, saw unusual rise on the day without any fundamental reason. "The two state-owned oil companies share prices whopped on the day for no other reason but manipulation," said a source in the market.
Stock prices of Jamuna Oil Company, the top gainer, posted a rise of 14.29 per cent and Meghna Petroleum Limited, second top gainer, 14.95 per cent. Jamuna Oil closed at Tk 230.30 per share and Meghna Petroleum Tk 220.60 per share.
AIMS First Mutual Fund was the top turnover leader with shares worth Tk 313.18 million traded and Beximco Pharma Tk 222.92 million traded. Other turnover leaders were Square Pharma, Grameen One Mutual Fund, S Alam Cold Roll Steels Limited, Lanka Bangla Finance, Jamuna Oil, Meghna Petroleum, BATBC and AB Bank.
Karnaphuli Insurance was the biggest loser with 14.42 per cent fall, followed by Midas Finance with 11.78 per cent, Fidelity Asset 11.49 per cent and Phoenix Insurance with 11.45 per cent.