DSE sinks heavily after six-day gain
Monday, 14 March 2011
FE Report
Snapping the sixth straight sessions' gain, Dhaka stocks plunged heavily Sunday following a widespread rumour that the formation of state-owned financial institutions' sponsored Tk 50 billion Bangladesh Fund became uncertain. A local news agency reported that due to the inertia of some participating financial institutions, the process of forming Tk 50 billion Bangladesh Fund became uncertain. Although one of the joint sponsors of the proposed fund, Investment Corporation of Bangladesh (ICB) Managing Director Md Fayekuzzam ruled out Sunday any uncertainty about the funds. At a press briefing, he said, "We have already approved our portion and sent letter to the heads of other institutions for approval and there is no uncertainty for off-loading Bangladesh Fund." Earlier, on March 6, the state-owned seven financial institutions--- ICB, Sonali Bank, Janata Bank, Rupali Bank, Agrani Bank, Bangladesh Development Bank and Sadharanbima Corporation announced to form an open-end mutual fund of Tk 50 billion and half of the fund will be inject in the share market. Following the news, the market gained for the sixth consecutive sessions and DGEN gained 1,347 points. On Sunday, trading experienced complete reversal than that of some previous sessions as heavy sell pressure gripped the investors and the benchmark DSE General Index (DGEN) --- the market barometer closed at 6,179.53, shedding 459.67 points or 6.92 per cent. The broader DSE All Shares Price Index (DSI) ended at 5,118.06 went down by 6.89 per cent or 378.65 points. The DSE-20 index including blue chips lost 6.69 per cent or 287 points to 4,001.92. However, analysts said it was a normal and expected price correction as the market gained earlier sixth straight sessions. Almost all the scripts lost ground on the day as out of 255 issues traded, only 10 issues gained and 245 declined. A total of 122.11 million shares changed hands which were 151.54 million in the previous session. The trade deals also decreased to 250,779 against 252,022 Thursday last. Turnover decreased to Tk 12.67 billion in value term, down by 15.2 per cent from Tk 14.93 billion in the previous session. The market capitalisation also decreased to Tk 2784.33 billion against Tk 2,962.98 billion in the previous session. Capital Market expert Akter H Sannamat said that it was a normal and expected price correction and it was very much needed for the sustainable market. "There were two rumours in the market, one of that was the market is going to Continued to page 14
Snapping the sixth straight sessions' gain, Dhaka stocks plunged heavily Sunday following a widespread rumour that the formation of state-owned financial institutions' sponsored Tk 50 billion Bangladesh Fund became uncertain. A local news agency reported that due to the inertia of some participating financial institutions, the process of forming Tk 50 billion Bangladesh Fund became uncertain. Although one of the joint sponsors of the proposed fund, Investment Corporation of Bangladesh (ICB) Managing Director Md Fayekuzzam ruled out Sunday any uncertainty about the funds. At a press briefing, he said, "We have already approved our portion and sent letter to the heads of other institutions for approval and there is no uncertainty for off-loading Bangladesh Fund." Earlier, on March 6, the state-owned seven financial institutions--- ICB, Sonali Bank, Janata Bank, Rupali Bank, Agrani Bank, Bangladesh Development Bank and Sadharanbima Corporation announced to form an open-end mutual fund of Tk 50 billion and half of the fund will be inject in the share market. Following the news, the market gained for the sixth consecutive sessions and DGEN gained 1,347 points. On Sunday, trading experienced complete reversal than that of some previous sessions as heavy sell pressure gripped the investors and the benchmark DSE General Index (DGEN) --- the market barometer closed at 6,179.53, shedding 459.67 points or 6.92 per cent. The broader DSE All Shares Price Index (DSI) ended at 5,118.06 went down by 6.89 per cent or 378.65 points. The DSE-20 index including blue chips lost 6.69 per cent or 287 points to 4,001.92. However, analysts said it was a normal and expected price correction as the market gained earlier sixth straight sessions. Almost all the scripts lost ground on the day as out of 255 issues traded, only 10 issues gained and 245 declined. A total of 122.11 million shares changed hands which were 151.54 million in the previous session. The trade deals also decreased to 250,779 against 252,022 Thursday last. Turnover decreased to Tk 12.67 billion in value term, down by 15.2 per cent from Tk 14.93 billion in the previous session. The market capitalisation also decreased to Tk 2784.33 billion against Tk 2,962.98 billion in the previous session. Capital Market expert Akter H Sannamat said that it was a normal and expected price correction and it was very much needed for the sustainable market. "There were two rumours in the market, one of that was the market is going to Continued to page 14