DSE index hits 3-week high
Thursday, 25 March 2010
FE Report
The benchmark index of the Dhaka Stock Exchange hit more than a three-week high Wednesday, after the securities regulators clarified about the credit facilities provided by merchant bankers and stockbrokers for buying securities.
The benchmark DSE General Index (DGEN) surged by 5633.45 with a steepest rise of 114.51 points or 2.07 per cent -- its highest gain since March 4 and fifth biggest single-day rise this year.
The market rose across the board as all the sectors, excluding the banking issues that declined 0.31 per cent, perked up.
Investors bet on mainly Grameenphone, energy and pharmaceuticals stocks, taking the market to a three-week high, said stockbrokers.
The buying spree pushed prices of more than 80 per cent issues to nudge higher as out of 250 issues traded, 204 ended positive, 43 negative and three remained unchanged.
Some of the investors adopted 'wait and see' policy, leading to the turnover shrinking drastically. Total turnover stood at Tk 8.96 billion, down 18.68 per cent from Tuesday's Tk 11.03 billion.
The broader All Shares Price Index (DSI) gained 91.08 points or 2.01 per cent to 4615.58 while DSE-20 comprising blue chips was up by 32.58 points or 1.08 per cent to 3039.30.
The market clawed back losses lost in the previous session on panic selling caused by misinterpretation of a directive issued by Securities and Exchange Commission (SEC).
The directive said that stockbrokers shall calculate the market price of portfolio or securities to determine the margin requirement for their clients using formula -- closing price of the securities plus net asset value divided by two.
The SEC clarified that the new directive will not affect the credit disbursement at the ratio of 1:1.5 set by the commission earlier.
Stockbrokers and merchant bankers need to evaluate loan margin against their clients' portfolios or securities for adjusting loans when the market is on downtrend.
The telecommunication sector gained 5.09 per cent as Grameenphone, the sole listed company in the sector and the country's largest private company, closed at Tk 356.90 from Tk 339.60.
The banking sector, the bellwether of the market, continued to lose pulse for the second straight session as it lost 0.31 per cent with South East Bank losing highest 5.03 per cent.
Pharmaceuticals sector gained 2.38 per cent, energy 1.52 per cent, non-banking financial institutions 1.51 per cent, general insurers 0.88 per cent, life insurers 1.57 per cent, cement 1.02 per cent and tannery 1.26 per cent.
The benchmark index of the Dhaka Stock Exchange hit more than a three-week high Wednesday, after the securities regulators clarified about the credit facilities provided by merchant bankers and stockbrokers for buying securities.
The benchmark DSE General Index (DGEN) surged by 5633.45 with a steepest rise of 114.51 points or 2.07 per cent -- its highest gain since March 4 and fifth biggest single-day rise this year.
The market rose across the board as all the sectors, excluding the banking issues that declined 0.31 per cent, perked up.
Investors bet on mainly Grameenphone, energy and pharmaceuticals stocks, taking the market to a three-week high, said stockbrokers.
The buying spree pushed prices of more than 80 per cent issues to nudge higher as out of 250 issues traded, 204 ended positive, 43 negative and three remained unchanged.
Some of the investors adopted 'wait and see' policy, leading to the turnover shrinking drastically. Total turnover stood at Tk 8.96 billion, down 18.68 per cent from Tuesday's Tk 11.03 billion.
The broader All Shares Price Index (DSI) gained 91.08 points or 2.01 per cent to 4615.58 while DSE-20 comprising blue chips was up by 32.58 points or 1.08 per cent to 3039.30.
The market clawed back losses lost in the previous session on panic selling caused by misinterpretation of a directive issued by Securities and Exchange Commission (SEC).
The directive said that stockbrokers shall calculate the market price of portfolio or securities to determine the margin requirement for their clients using formula -- closing price of the securities plus net asset value divided by two.
The SEC clarified that the new directive will not affect the credit disbursement at the ratio of 1:1.5 set by the commission earlier.
Stockbrokers and merchant bankers need to evaluate loan margin against their clients' portfolios or securities for adjusting loans when the market is on downtrend.
The telecommunication sector gained 5.09 per cent as Grameenphone, the sole listed company in the sector and the country's largest private company, closed at Tk 356.90 from Tk 339.60.
The banking sector, the bellwether of the market, continued to lose pulse for the second straight session as it lost 0.31 per cent with South East Bank losing highest 5.03 per cent.
Pharmaceuticals sector gained 2.38 per cent, energy 1.52 per cent, non-banking financial institutions 1.51 per cent, general insurers 0.88 per cent, life insurers 1.57 per cent, cement 1.02 per cent and tannery 1.26 per cent.