DSE bear-run continues for 2nd straight week
Saturday, 10 April 2010
FE Report
Dhaka Stock Exchange (DSE) continued to witness bear-run for the second consecutive week that ended Thursday as the investors opted for keeping themselves sidelined in fear of further decline in share prices.
During the week, selling pressure was seen in major sectors including banking, telecommunications, pharmaceuticals and cement. Leasing, fuel and power and life insurances saw modest buying interest from the investors.
The benchmark DSE General Index (DGEN) shed 24.68 points or 0.44 per cent to close at 5569.64, pulled down mainly by banking and telecommunications issues that declined 2.15 per cent and 1.29 per cent respectively.
The broader All Shares Price Index (DSI) lost 23.75 points or 0.52 per cent to 4559.91 while the DSE-20 blue chip index ended 30.39 points or 1.03 per cent lower at 2914.22.
Investors including big individuals preferred to remain sidelined in fear of further decline in share prices but most of the investors returned to the market in the last two sessions pinning hope that government might not impose taxes on profits in share trading, according to the dealers.
Banks, the bellwether of the DSE accounting for one-fourth of its market capitalisation, lost their strength after several top banks cut their overexposure in the market in response to Bangladesh Bank's warning about their exposure.
Grameenphone, the most weighted shares in DSE, lost on profit taking ahead of its record date for dividend entitlement.
But it topped the week's turnover leaders with shares worth Tk 3.61 billion despite its share trading being suspended in the last trading session Thursday due to its record date for divided entailment.
Turnover continued to suffer clocking at Tk 6.4 billion, slumping 27 per cent over the previous week.
Pharmaceuticals decreased 1.15 per cent, general insurers 1.61 per cent, cement 3.26 per cent and tannery 1.54 per cent in the week.
Leasing or non-banking financial institutions issues reversed from their falling streak in the week, rising sharply 4.90 per cent riding on rally in share prices of ICB.
Mutual funds broke their losing run after two weeks, spiking 1.28 per cent. Fuel and power gained marginally by 0.13 per cent.
Life insurance sector had the highest gain during the week as the sector went up by 6.15 per cent.
The market ended flat in the opening day of the week while turnover went down by 12 per cent. Following day Monday, it closed lower with turnover remaining stagnant.
On Tuesday the benchmark index lost 1.27 per cent to one-week low on the news that the national board of revenue (NBR) considered imposing tax on profits generated from share trading.
On Wednesday, the market edged slightly higher on expectation of positive outcome from meeting between DSE and NBR.
On the closing session Thursday, the benchmark index gained about one per cent as investors shrugged off their slumber after the revenue board reportedly assured that it would not slap any fiscal measure that affects the market.
After GP, other turnover leaders were Beximco Pharma, Beximco, LankaBangla Finance Company, Bextex Limited, DESCO, Square Pharma, Prime Finance and First Lease Finance and Investment Ltd.
Eastern Lubricants was the week's top gainer posting a rise of 23.09 per cent after its share trading resumed in electronic form in the previous week.
It was followed by Meghna Condensed Milk, Mercantile Insurance, National Life Insurance, Legacy Footwear, Rupali Life Insurance Company, Prime Finance, ICB Hakkani Pulp and Paper and Sandhani Life Insurance.
Islamic Finance, Summit Power, Bangas, Gulf Foods, Gemini Sea Food, Ocean Containers, Kohinoor Chemicals, Summit Alliance Port, Reckitt Benckiser and Prime Insurance were the week's prominent losers.
Dhaka Stock Exchange (DSE) continued to witness bear-run for the second consecutive week that ended Thursday as the investors opted for keeping themselves sidelined in fear of further decline in share prices.
During the week, selling pressure was seen in major sectors including banking, telecommunications, pharmaceuticals and cement. Leasing, fuel and power and life insurances saw modest buying interest from the investors.
The benchmark DSE General Index (DGEN) shed 24.68 points or 0.44 per cent to close at 5569.64, pulled down mainly by banking and telecommunications issues that declined 2.15 per cent and 1.29 per cent respectively.
The broader All Shares Price Index (DSI) lost 23.75 points or 0.52 per cent to 4559.91 while the DSE-20 blue chip index ended 30.39 points or 1.03 per cent lower at 2914.22.
Investors including big individuals preferred to remain sidelined in fear of further decline in share prices but most of the investors returned to the market in the last two sessions pinning hope that government might not impose taxes on profits in share trading, according to the dealers.
Banks, the bellwether of the DSE accounting for one-fourth of its market capitalisation, lost their strength after several top banks cut their overexposure in the market in response to Bangladesh Bank's warning about their exposure.
Grameenphone, the most weighted shares in DSE, lost on profit taking ahead of its record date for dividend entitlement.
But it topped the week's turnover leaders with shares worth Tk 3.61 billion despite its share trading being suspended in the last trading session Thursday due to its record date for divided entailment.
Turnover continued to suffer clocking at Tk 6.4 billion, slumping 27 per cent over the previous week.
Pharmaceuticals decreased 1.15 per cent, general insurers 1.61 per cent, cement 3.26 per cent and tannery 1.54 per cent in the week.
Leasing or non-banking financial institutions issues reversed from their falling streak in the week, rising sharply 4.90 per cent riding on rally in share prices of ICB.
Mutual funds broke their losing run after two weeks, spiking 1.28 per cent. Fuel and power gained marginally by 0.13 per cent.
Life insurance sector had the highest gain during the week as the sector went up by 6.15 per cent.
The market ended flat in the opening day of the week while turnover went down by 12 per cent. Following day Monday, it closed lower with turnover remaining stagnant.
On Tuesday the benchmark index lost 1.27 per cent to one-week low on the news that the national board of revenue (NBR) considered imposing tax on profits generated from share trading.
On Wednesday, the market edged slightly higher on expectation of positive outcome from meeting between DSE and NBR.
On the closing session Thursday, the benchmark index gained about one per cent as investors shrugged off their slumber after the revenue board reportedly assured that it would not slap any fiscal measure that affects the market.
After GP, other turnover leaders were Beximco Pharma, Beximco, LankaBangla Finance Company, Bextex Limited, DESCO, Square Pharma, Prime Finance and First Lease Finance and Investment Ltd.
Eastern Lubricants was the week's top gainer posting a rise of 23.09 per cent after its share trading resumed in electronic form in the previous week.
It was followed by Meghna Condensed Milk, Mercantile Insurance, National Life Insurance, Legacy Footwear, Rupali Life Insurance Company, Prime Finance, ICB Hakkani Pulp and Paper and Sandhani Life Insurance.
Islamic Finance, Summit Power, Bangas, Gulf Foods, Gemini Sea Food, Ocean Containers, Kohinoor Chemicals, Summit Alliance Port, Reckitt Benckiser and Prime Insurance were the week's prominent losers.