Dhaka stocks up slightly
Wednesday, 15 December 2010
FE Report
Dhaka stocks ended slightly higher Tuesday, as late profit-booking wiped off early gains.
However, rally in banking and mutual fund sectors helped the market close in the positive terrain. The market opened with a positive mood, gaining 170 points, but it began to decline due to profit-booking on non-banking financial institutions and telecommunication stocks, before edging higher at the end.
The DSE General Index (DGEN), the main yardstick of the market, ended at 8354.84 with a gain of 0.31 per cent or 25.73 points. The broader All Shares Price Index (DSI) rose 0.32 per cent or 22.22 points to 6927.50. The DSE-20 Index comprising blue chips was up by 0.63 per cent or 30.99 points to 4967.29.
Turnover stood at Tk 15.57 billion, down by 10.40 per cent than the previous session. Gainers took a lead over the losers, as out of 245 issues traded, 138 advanced, 102 declined and five remained unchanged.
"The market witnessed the lowest turnover within three months, indicating that the investors are not yet fully confident about the market," dealers said.
"The market cannot fully overcome the bearish mood, and the situation might continue till the end of this month. As a result, the turnover is declining significantly," said Prof Abu Ahmed, who teaches Economics at Dhaka University.
"Late profit-taking, mainly by institutional investors, due to their year-end closing closed the market flat. And they are selling shares instead of buying," said Abu Ahmed, also a capital market expert.
On Monday, the Securities and Exchange Commission (SEC) increased the margin loan ratio from 1:0.5 to 1:1 to stabilise the market. As most scrips are not eligible for margin loan, many investors invest their own fund, and since Wednesday there are very few new investors entering the market with huge fund, analysts said.
"The investors took a cautious posture due mainly to apprehension of further fall of the market, and many of them are yet to be confident about fresh investment, resulting to lower volume of turnover," they said.
The mutual fund sector was the highest gainer of the day, rising 5.19 per cent. Banking issues, which make up more than one-third of the total market capitalisation, gained 1.06 per cent. Jute sector gained 3.45 per cent, pharmaceutical 0.77 per cent, and tannery 0.45 per cent.
Among the losers, non-banking financial sector lost slightly by 0.06 per cent, telecommunication 0.81 per cent, and cement 0.73 per cent.
Dhaka stocks ended slightly higher Tuesday, as late profit-booking wiped off early gains.
However, rally in banking and mutual fund sectors helped the market close in the positive terrain. The market opened with a positive mood, gaining 170 points, but it began to decline due to profit-booking on non-banking financial institutions and telecommunication stocks, before edging higher at the end.
The DSE General Index (DGEN), the main yardstick of the market, ended at 8354.84 with a gain of 0.31 per cent or 25.73 points. The broader All Shares Price Index (DSI) rose 0.32 per cent or 22.22 points to 6927.50. The DSE-20 Index comprising blue chips was up by 0.63 per cent or 30.99 points to 4967.29.
Turnover stood at Tk 15.57 billion, down by 10.40 per cent than the previous session. Gainers took a lead over the losers, as out of 245 issues traded, 138 advanced, 102 declined and five remained unchanged.
"The market witnessed the lowest turnover within three months, indicating that the investors are not yet fully confident about the market," dealers said.
"The market cannot fully overcome the bearish mood, and the situation might continue till the end of this month. As a result, the turnover is declining significantly," said Prof Abu Ahmed, who teaches Economics at Dhaka University.
"Late profit-taking, mainly by institutional investors, due to their year-end closing closed the market flat. And they are selling shares instead of buying," said Abu Ahmed, also a capital market expert.
On Monday, the Securities and Exchange Commission (SEC) increased the margin loan ratio from 1:0.5 to 1:1 to stabilise the market. As most scrips are not eligible for margin loan, many investors invest their own fund, and since Wednesday there are very few new investors entering the market with huge fund, analysts said.
"The investors took a cautious posture due mainly to apprehension of further fall of the market, and many of them are yet to be confident about fresh investment, resulting to lower volume of turnover," they said.
The mutual fund sector was the highest gainer of the day, rising 5.19 per cent. Banking issues, which make up more than one-third of the total market capitalisation, gained 1.06 per cent. Jute sector gained 3.45 per cent, pharmaceutical 0.77 per cent, and tannery 0.45 per cent.
Among the losers, non-banking financial sector lost slightly by 0.06 per cent, telecommunication 0.81 per cent, and cement 0.73 per cent.