Dhaka stocks tumble on price correction
Wednesday, 20 October 2010
FE Report
Dhaka stocks edged lower Tuesday on price correction amid volatility, as investors took a pause from the historic upswing in recent times.
The benchmark DSE General Index (DGEN) dropped slightly 16.76 points or 0.22 per cent to 7476.83 after swinging between gains and losses.
The three-week turnover was still seen by dealers as healthy, but profit-taking on banks, fuel and power, and insurances dragged the market down.
The broader All Shares Price Index (DSI) moved down by 0.28 per cent or 17.90 points to 6214.30. The DSE-20 Index comprising blue chips fell 0.51 per cent or 22.41 points to 4368.40.
Banking issues, which make up more than one-third of the total market capitalisation, plummeted 1.21 per cent, widening its losing streak for the second straight session on the continued price correction.
Grameenphone, the most weighted shares in DSE and the country's biggest cellphone firm, declined 0.15 per cent.
Fuel and power sector lost 0.70 per cent, even if it shone in two previous sessions. Pharmaceuticals sector closed in the negative while non-banking financial institutions closed 1.48 per cent higher.
"The market took a pause to catch its breath after exuberance, which was long overdue," said Rezaul Haque who heads the merchant banking division of PFI Ltd.
A broker said, "Investors were looking for quick gains as stock prices of some enterprises with small cap went up."
Debutant Popular Life First Mutual Fund rose 9.0 per cent from its offer price of Tk 10.00 to close at Tk 10.90. The fund was the fourth biggest gainer on the day.
Losers thrashed gainers as out of 243 issues traded, 93 advanced, 149 declined and one remained unchanged. Turnover increased to Tk 19.40 billion, from the previous session's Tk 19.0 billion.
Titas Gas -- state owned gas distribution company -- saw the highest trading activity, becoming the turnover leader with shares worth Tk 1.34 billion changing hands.
Among the turnover leaders were Peoples Leasing, Beximco Ltd, Prime Finance, LankaBangla Finance, Summit Power, Union Capital, One Bank Ltd and UCBL.
Dulamia Cotton climbed highest 16.71 per cent, followed by EHL, Saiham Textile, Popular First Mutual Fund, Delta Spinning, NTC, Style Craft, Desh Garments, Golden Son and Apex Foods.
Apex Weaving and Mono Staffler led the fall as their shares were down 10.46 per cent and 7.0 per cent respectively.
The Securities Exchange Commission (SEC) ordered that two companies would be placed on OTC market from today (Wednesday).
Dhaka stocks edged lower Tuesday on price correction amid volatility, as investors took a pause from the historic upswing in recent times.
The benchmark DSE General Index (DGEN) dropped slightly 16.76 points or 0.22 per cent to 7476.83 after swinging between gains and losses.
The three-week turnover was still seen by dealers as healthy, but profit-taking on banks, fuel and power, and insurances dragged the market down.
The broader All Shares Price Index (DSI) moved down by 0.28 per cent or 17.90 points to 6214.30. The DSE-20 Index comprising blue chips fell 0.51 per cent or 22.41 points to 4368.40.
Banking issues, which make up more than one-third of the total market capitalisation, plummeted 1.21 per cent, widening its losing streak for the second straight session on the continued price correction.
Grameenphone, the most weighted shares in DSE and the country's biggest cellphone firm, declined 0.15 per cent.
Fuel and power sector lost 0.70 per cent, even if it shone in two previous sessions. Pharmaceuticals sector closed in the negative while non-banking financial institutions closed 1.48 per cent higher.
"The market took a pause to catch its breath after exuberance, which was long overdue," said Rezaul Haque who heads the merchant banking division of PFI Ltd.
A broker said, "Investors were looking for quick gains as stock prices of some enterprises with small cap went up."
Debutant Popular Life First Mutual Fund rose 9.0 per cent from its offer price of Tk 10.00 to close at Tk 10.90. The fund was the fourth biggest gainer on the day.
Losers thrashed gainers as out of 243 issues traded, 93 advanced, 149 declined and one remained unchanged. Turnover increased to Tk 19.40 billion, from the previous session's Tk 19.0 billion.
Titas Gas -- state owned gas distribution company -- saw the highest trading activity, becoming the turnover leader with shares worth Tk 1.34 billion changing hands.
Among the turnover leaders were Peoples Leasing, Beximco Ltd, Prime Finance, LankaBangla Finance, Summit Power, Union Capital, One Bank Ltd and UCBL.
Dulamia Cotton climbed highest 16.71 per cent, followed by EHL, Saiham Textile, Popular First Mutual Fund, Delta Spinning, NTC, Style Craft, Desh Garments, Golden Son and Apex Foods.
Apex Weaving and Mono Staffler led the fall as their shares were down 10.46 per cent and 7.0 per cent respectively.
The Securities Exchange Commission (SEC) ordered that two companies would be placed on OTC market from today (Wednesday).