DSE benchmark index hits six-week low
Thursday, 26 March 2009
FE Report
Dhaka stocks continued to slide in a market fluctuating heavily Wednesday with the benchmark index of Dhaka Stock Exchange (DSE) sinking to a six-week low.
The benchmark DSE General Index (DGEN) shed 1.47 per cent or 37.85 points to close at 2523.78, the lowest since February 11.
The DSE witnessed a sharp decline in its daily transaction. The total turnover stood at Tk 3.35 billion against the previous day's Tk 4.85 billion.
"This resulted from a bleak economic scenario painted by the policy makers and some economists," said Salahuddin Ahmed Khan, professor of the finance department of the Dhaka University.
The policy taken by some merchant banks not to give credit against some overvalued stocks also contributed to the fall of the market, according to investors.
The market fell across the board Wednesday. However, the insurance issues rose on the news that the government assured insurers that two insurance ordinances promulgated by the past caretaker government would be placed in the next session of the parliament for ratification.
The past caretaker government in August last year approved two ordinances: Insurance Regulatory Authority (IRA) Ordinance 2008 and Insurance Ordinance (IO) 2008.
But uncertainty surfaced after the Awami League-led new government kept the ordinances out of the first list of ordinances tabled in parliament for passage.
Out of a total of 254 issues traded on the day, prices of 70 rose, 182 dropped and two remained unchanged.
The All Shares Price Index (DSI) ended at 2091.37 with a drop of 30.48 points and the DSE-20 blue chip index finished at 1963.65 with a loss of 23.45 points.
The market capitalisation stood at Tk 1.02 trillion on the day.
Summit Power was the turnover leader with shares worth Tk 216.84 million traded.
The next other turnover leaders were Titas Gas, Shinepukur Ceramics Limited, Beximco, AIMS First Mutual Fund, Beximco Pharma, BSRM Steels Limited, DESCO, Eastern Housing Limited and S Alam Cold Rolled Steel Mills Limited.
The top gainers were Global Insurance, Reliance Insurance, Peoples Insurance, Rupali Insurance, Karnaphuli Insurance, 2nd ICB, Takaful Insurance, Pragati Insurance, Nitol Insurance and Federal Insurance.
The BD Welding posted the biggest fall of 17.14 per cent following its corporate declaration. Its board of directors recommended 5.0 per cent stock dividend for the past year.
The next other top losers were Hakkani Pulp and Paper, Union Capital, Rahim Textile, Maq Paper, ICB AMCL 1st Mutual Fund, Northern Insurance, Apex Adelchi, TBL and Quasem Dry Cell.
Dhaka stocks continued to slide in a market fluctuating heavily Wednesday with the benchmark index of Dhaka Stock Exchange (DSE) sinking to a six-week low.
The benchmark DSE General Index (DGEN) shed 1.47 per cent or 37.85 points to close at 2523.78, the lowest since February 11.
The DSE witnessed a sharp decline in its daily transaction. The total turnover stood at Tk 3.35 billion against the previous day's Tk 4.85 billion.
"This resulted from a bleak economic scenario painted by the policy makers and some economists," said Salahuddin Ahmed Khan, professor of the finance department of the Dhaka University.
The policy taken by some merchant banks not to give credit against some overvalued stocks also contributed to the fall of the market, according to investors.
The market fell across the board Wednesday. However, the insurance issues rose on the news that the government assured insurers that two insurance ordinances promulgated by the past caretaker government would be placed in the next session of the parliament for ratification.
The past caretaker government in August last year approved two ordinances: Insurance Regulatory Authority (IRA) Ordinance 2008 and Insurance Ordinance (IO) 2008.
But uncertainty surfaced after the Awami League-led new government kept the ordinances out of the first list of ordinances tabled in parliament for passage.
Out of a total of 254 issues traded on the day, prices of 70 rose, 182 dropped and two remained unchanged.
The All Shares Price Index (DSI) ended at 2091.37 with a drop of 30.48 points and the DSE-20 blue chip index finished at 1963.65 with a loss of 23.45 points.
The market capitalisation stood at Tk 1.02 trillion on the day.
Summit Power was the turnover leader with shares worth Tk 216.84 million traded.
The next other turnover leaders were Titas Gas, Shinepukur Ceramics Limited, Beximco, AIMS First Mutual Fund, Beximco Pharma, BSRM Steels Limited, DESCO, Eastern Housing Limited and S Alam Cold Rolled Steel Mills Limited.
The top gainers were Global Insurance, Reliance Insurance, Peoples Insurance, Rupali Insurance, Karnaphuli Insurance, 2nd ICB, Takaful Insurance, Pragati Insurance, Nitol Insurance and Federal Insurance.
The BD Welding posted the biggest fall of 17.14 per cent following its corporate declaration. Its board of directors recommended 5.0 per cent stock dividend for the past year.
The next other top losers were Hakkani Pulp and Paper, Union Capital, Rahim Textile, Maq Paper, ICB AMCL 1st Mutual Fund, Northern Insurance, Apex Adelchi, TBL and Quasem Dry Cell.