DSE begins new year positively
Saturday, 7 January 2012
FE Report
The Dhaka Stock Exchange (DSE) ended the first week of the year with a positive note. It was also the fourth consecutive gaining week for the bourse, with significantly increasing turnover value, as the investors' confidence boosted up.
Their confidence enhanced, as the market has been showing some stability during the last few sessions. They are expecting the positive momentum to continue in future also, said a stock broker.
The participation of the institutional investors has also increased after their year closing, which is also a good sign for the market, he said.
The week witnessed five trading sessions, as usual. Among them three sessions advanced strongly, while two sessions lost marginally.
In the week, the DSE General Index (DGEN) surged by 209.39 points or 3.98 per cent to close at 5,467.00.
The broader All Shares Price Index (DSI) advanced 177.39 points or 4.09 per cent to close at 4,561.33. The DSE-20 Index comprising blue-chip shares also gained 108.49 points or 2.77 per cent to close at 4,018.81.
The turnover value almost doubled this week, compared to the previous week. The total turnover value stood at Tk 34.6 billion, whereas it was Tk 18.7 billion in the previous week. The average daily turnover value rose by 48.94 per cent to stand at Tk 7.0 billion, compared to the previous week's Tk 4.7 billion.
All the major sectors advanced in the week, with NBFIs gaining 10.80 per cent and emerging as the highest gainer.
Among other sectors, general insurance, life insurance and bank advanced 7.44 per cent, 2.57 per cent and 1.23 per cent respectively.
Pharmaceuticals and fuel and power sectors also gained around 4.0 per cent each, while food and allied sector gained 0.45 per cent.
The market capitalisation was Tk 2,616.73 billion on the opening day of the week, and at the end of the week it stood at Tk 2,708.93 billion, a 3.52 per cent higher.
A B Mirza Azizul Islam, former finance adviser to the caretaker government, said the investors should invest in the shares of the fundamentally strong companies, and should not pay heed to any rumour.
Mr Islam, also former chairman of the Securities and Exchange Commission (SEC), advised the investors not to invest all of their savings, and avoid margin loan-based trading.
"To achieve medium-term and long-term sustainability of the capital market, the government and the SEC should make the primary market stronger through facilitating new initial public offerings (IPOs)," Mr Islam added.
The investors became optimistic, expecting further stability of the market in the coming days, as sponsor-directors of different listed companies continued to make declarations of buying shares of their respective companies to comply with the regulator's recent directive, commented a stock broker.
"The investors are gradually regaining their confidence, as the sponsor-directors are making announcements to buy shares," he said.
During the week, 10 more sponsor-directors expressed their willingness to buy shares of their companies at prevailing market prices within the next 30 working days.
So far, as many as 46 sponsor-directors expressed their willingness to buy shares of their companies to comply with the regulator's directive to hold minimum 2.0 per cent stakes in their own firms.
Meanwhile, in the week the SEC has taken initiative to reduce the settlement period of share transaction from the existing T+3 to T+2 to make the market vibrant.
Grameenphone (GP) topped the week's turnover chart, with shares worth Tk 1.10 billion changing hands. The other turnover leaders were United Airways, National Bank, SIBL, RN Spinning, Fu-Wang Ceramics, Keya Cosmetics, Beximco Limited, Mercantile Bank and Aftab Automobiles.
Kay and Que was the week's highest gainer, posting a rise of 35.20 per cent. It was followed by First Bangladesh Shilpa Rin Sangstha Mutual Fund, Delta-Brac Housing, RD Food, Phoenix Finance, National Housing Finance and Investment, Beximco Synthetics, Eastern Insurance, ICB and United Insurance.
The week's worst losers included Third ICB, Pharma Aids, Seventh ICB, EBL NRB Mutual Fund, Jute Spinners, Delta Life Insurance, Usmania Glass, CVO Petrochemical Refinery, Janata Insurance and Mithun Knitting.
On Sunday, the market started the year 2012 with gaining streak, as the DGEN climbed 94.14 points or 1.79 per cent, with substantially rising turnover value, as the investors went for fresh investment.
The turnover value crossed the Tk 6.0-billion-mark, and stood at Tk 6.70 billion after November 23 last year.
On Monday, the market lost 18.33 points or 0.34 per cent, with declining turnover value, as the investors booked profit in the later part of the trading session.
The turnover value declined to 5.94 billion, down by 11.34 per cent, compared to Tk 6.70 billion in the previous session.
On Tuesday, the market went up 67.60 points or 1.26 per cent, as the investors went for fresh buying, and the daily turnover crossed the Tk 7.0-billion-mark and stood at Tk 7.10 billion.
On Wednesday, the market surged 82.52 points or 1.52 per cent with substantially rising turnover value, as the investors were active throughout the trading session.
The turnover value continued to rise, crossing the Tk 8.0-billion-mark and stood at Tk 8.08 billion, against Tk 7.10 billion in the previous session.
On Thursday, the market slipped 16.55 points or 0.30 per cent to close at 5,466.99 amid volatile trading throughout the session with fall in the turnover value, as the investors booked profit.
The turnover declined to Tk 6.78 billion in value terms, down by 15.98 per cent compared to Tk 8.07 billion in the previous session.
The Dhaka Stock Exchange (DSE) ended the first week of the year with a positive note. It was also the fourth consecutive gaining week for the bourse, with significantly increasing turnover value, as the investors' confidence boosted up.
Their confidence enhanced, as the market has been showing some stability during the last few sessions. They are expecting the positive momentum to continue in future also, said a stock broker.
The participation of the institutional investors has also increased after their year closing, which is also a good sign for the market, he said.
The week witnessed five trading sessions, as usual. Among them three sessions advanced strongly, while two sessions lost marginally.
In the week, the DSE General Index (DGEN) surged by 209.39 points or 3.98 per cent to close at 5,467.00.
The broader All Shares Price Index (DSI) advanced 177.39 points or 4.09 per cent to close at 4,561.33. The DSE-20 Index comprising blue-chip shares also gained 108.49 points or 2.77 per cent to close at 4,018.81.
The turnover value almost doubled this week, compared to the previous week. The total turnover value stood at Tk 34.6 billion, whereas it was Tk 18.7 billion in the previous week. The average daily turnover value rose by 48.94 per cent to stand at Tk 7.0 billion, compared to the previous week's Tk 4.7 billion.
All the major sectors advanced in the week, with NBFIs gaining 10.80 per cent and emerging as the highest gainer.
Among other sectors, general insurance, life insurance and bank advanced 7.44 per cent, 2.57 per cent and 1.23 per cent respectively.
Pharmaceuticals and fuel and power sectors also gained around 4.0 per cent each, while food and allied sector gained 0.45 per cent.
The market capitalisation was Tk 2,616.73 billion on the opening day of the week, and at the end of the week it stood at Tk 2,708.93 billion, a 3.52 per cent higher.
A B Mirza Azizul Islam, former finance adviser to the caretaker government, said the investors should invest in the shares of the fundamentally strong companies, and should not pay heed to any rumour.
Mr Islam, also former chairman of the Securities and Exchange Commission (SEC), advised the investors not to invest all of their savings, and avoid margin loan-based trading.
"To achieve medium-term and long-term sustainability of the capital market, the government and the SEC should make the primary market stronger through facilitating new initial public offerings (IPOs)," Mr Islam added.
The investors became optimistic, expecting further stability of the market in the coming days, as sponsor-directors of different listed companies continued to make declarations of buying shares of their respective companies to comply with the regulator's recent directive, commented a stock broker.
"The investors are gradually regaining their confidence, as the sponsor-directors are making announcements to buy shares," he said.
During the week, 10 more sponsor-directors expressed their willingness to buy shares of their companies at prevailing market prices within the next 30 working days.
So far, as many as 46 sponsor-directors expressed their willingness to buy shares of their companies to comply with the regulator's directive to hold minimum 2.0 per cent stakes in their own firms.
Meanwhile, in the week the SEC has taken initiative to reduce the settlement period of share transaction from the existing T+3 to T+2 to make the market vibrant.
Grameenphone (GP) topped the week's turnover chart, with shares worth Tk 1.10 billion changing hands. The other turnover leaders were United Airways, National Bank, SIBL, RN Spinning, Fu-Wang Ceramics, Keya Cosmetics, Beximco Limited, Mercantile Bank and Aftab Automobiles.
Kay and Que was the week's highest gainer, posting a rise of 35.20 per cent. It was followed by First Bangladesh Shilpa Rin Sangstha Mutual Fund, Delta-Brac Housing, RD Food, Phoenix Finance, National Housing Finance and Investment, Beximco Synthetics, Eastern Insurance, ICB and United Insurance.
The week's worst losers included Third ICB, Pharma Aids, Seventh ICB, EBL NRB Mutual Fund, Jute Spinners, Delta Life Insurance, Usmania Glass, CVO Petrochemical Refinery, Janata Insurance and Mithun Knitting.
On Sunday, the market started the year 2012 with gaining streak, as the DGEN climbed 94.14 points or 1.79 per cent, with substantially rising turnover value, as the investors went for fresh investment.
The turnover value crossed the Tk 6.0-billion-mark, and stood at Tk 6.70 billion after November 23 last year.
On Monday, the market lost 18.33 points or 0.34 per cent, with declining turnover value, as the investors booked profit in the later part of the trading session.
The turnover value declined to 5.94 billion, down by 11.34 per cent, compared to Tk 6.70 billion in the previous session.
On Tuesday, the market went up 67.60 points or 1.26 per cent, as the investors went for fresh buying, and the daily turnover crossed the Tk 7.0-billion-mark and stood at Tk 7.10 billion.
On Wednesday, the market surged 82.52 points or 1.52 per cent with substantially rising turnover value, as the investors were active throughout the trading session.
The turnover value continued to rise, crossing the Tk 8.0-billion-mark and stood at Tk 8.08 billion, against Tk 7.10 billion in the previous session.
On Thursday, the market slipped 16.55 points or 0.30 per cent to close at 5,466.99 amid volatile trading throughout the session with fall in the turnover value, as the investors booked profit.
The turnover declined to Tk 6.78 billion in value terms, down by 15.98 per cent compared to Tk 8.07 billion in the previous session.