DSE returns to red, turnover declines notably

FE Report After remaining a week in the positive territory the Dhaka stocks again returned to the negative, with significant decline in turnover value amid lower participation of institutional investors. The volatile week witnessed five trading sessions as usual. Among them three sessions lost sharply, while two sessions advanced marginally. During the week, the general index of the Dhaka Stock Exchange (DSE) -DGEN - shed 136.55 points or 2.54 per cent to close at 5,236.76. The broader All Shares Price Index (DSI) lost 118.05 points or 2.63 per cent to close at 4,377.48. The DSE-20 Index comprising blue-chip shares also declined 26.99 points or 0.69 per cent to close at 3,881.35. Market analysts said the turnover value declined significantly, as trading of shares and units of more than half of the companies and mutual funds took place in the spot market on three days - Monday, Tuesday and Wednesday. The trading of shares and units remained halted Thursday, following their record date to set a uniform face value of Tk 10 each, in line with regulatory directives. The uniform face value will be effective from tomorrow (Dec 4). The Securities and Exchange Commission (SEC) on September 15 ordered all listed companies and mutual funds to change face value of their shares and units to Tk 10. Meanwhile, the SEC on November 23, unveiled a 21-point stock market rejuvenation package, to be implemented in three time spans - short, medium and long. The package included greater participation of banks and other financial institutions, and formulation of a 'special scheme' to help the small investors recoup their loss. As per the SEC announcement the implementation of the short-term measures will start immediately, the medium-term measures within three months, and the long-term measures within six months. Though the market experts, bankers, bourses and insurers termed the stimulus package positive, saying it will help stabilise the stock market in the long run, the investors are still in confusion and dilemma. Meanwhile, a monitoring team consisting of the representatives of the SEC and the DSE was also active at different brokerage houses from Monday to Thursday. The total turnover value in the week came down to Tk 15.53 billion against Tk 33.80 billion in the previous week. The average daily turnover value stood at Tk 3.10 billion, down by 54.04 per cent than the previous week's Tk 6.76 billion. The market capitalisation was Tk 2,656.33 billion on the opening day of the week, and at the end of the week it stood at Tk 2,609.32 billion, a 1.77 per cent lower. Out of the 267 issues traded during the week, only 49 advanced, 214 declined, while four remained unchanged. Among the financial sectors, NBFIs was the week's biggest loser with 6.26 per cent loss. It was followed by life insurance which lost 3.65 per cent. Banks and general insurance retraced more than 2.0 per cent each. Among other major sectors, telecommunications, pharmaceuticals, and fuel and power sectors lost 2.83 per cent, 2.06 per cent and 0.74 per cent respectively. Tannery sector was the only gainer of the week with 1.54 per cent advancement. Trading of two new companies - Rangpur Dairy and Zahin Textile - started in the bourses Wednesday. Rangpur Dairy gained 110.0 per cent in the opening session, while Zahin Textile advanced 81.6 per cent. United Airways topped the week's turnover chart, with shares worth Tk 648.79 billion changing hands. The other turnover leaders were Beximco Limited, Fu-Wang Ceramics, Grameenphone, Aftab Auto, Lafarge Surma Cement, Beximco Pharma, City Bank, National Bank and Mercantile Bank. Jamuna Oil was the week's highest gainer, posting a rise of 6.96 per cent. It was followed by Apex Spinning, Rahima Food, Meghna Petroleum, Fu-Wang Ceramics, Islami Insurance, BSRM Steels, Apex Tannery, Third ICB Mutual Fund and Sonarbangla Insurance. The week's worst losers included Bangladesh Shipping Corporation, Al-Haj Textile, Meghna Condensed Milk, Beacon Pharma, Samorita Hospital, Meghna Pet, Eighth ICB, Ambee Pharma and Shympur Sugar Mills. On Sunday, the market declined sharply on the first session of the week. The DGEN lost 5.73 per cent or 308 points, which is the biggest single-day fall since March 13, 2011, despite announcement of the 21-point stock market rejuvenation package. The turnover value increased to Tk 4.51 billion. On Monday, the market advanced 160.13 points or 3.16 per cent, though with lower turnover, amid street protest by a section of small investors. On Tuesday, the market slipped again 70.63 points or 1.35 per cent amid volatility and street protest by investors. The turnover value stood at Tk 2.55 billion, down by 23.19 per cent, compared to Tk 3.32 billion in the previous session. On Wednesday, the market surged 113.87 points or 2.20 per cent, and almost all shares rose on the day, as the investors went for fresh buying. The turnover value increased to Tk 3.19 billion. On Thursday, the market went to negative territory again and the DGEN lost 31 points or 0.60 per cent to close at 5,236.75, with the turnover value declining to Tk 1.95 billion, as trading of shares and units of 138 companies and mutual funds was halted following their record date on the day.