DSE snaps losing run
FE Report | Wednesday, 2 March 2011
FE Report
Dhaka stocks rebounded sharply Tuesday snapping five sessions of heavy losses as investors saw a silver line at the end of the tunnel after seven state-owned financial institutions declared forming a special fund to buy shares. The benchmark DSE General Index (DGEN) surged by 7.66 per cent or 398.51 points to end at 5,601.59 with small investors holding on to their portfolios and institutional investors emerging in the buying scene. The broader DSE All Shares Price Index (DSI) ended at 4,646.67, up by 7.61 per cent or 328.78 points. The DSE-20 including blue chips index gained 8.03 per cent or 282.52 points to 3,797.03. On Monday seven state-owned financial institutions--- Investment Corporation of Bangladesh (ICB), Sonali, Janata, Rupali, Agrani, Bangladesh Development banks and Sadharan Bima Corporation --- announced that they would form a special fund to buy shares. The impact of the news was instantly felt when trading began Tuesday. The DGEN gained 300 points in the first 10 minutes but the gain tapered off as the day progressed. Of the traded issues, 246 advanced, six declined and one was unchanged. "The market saw unprecedented demand pressure. Everyone turned a buyer today (Tuesday). And for the first time institutional investors turned up in the buying scene," said a top dealer. He said the market could have risen further had there been no circuit breakers on individual stocks. Transaction of most of the shares was automatically suspended after they hit upper threshold of the circuit-breakers. Many investors told the FE that they did not sell shares as they had bought shares at higher prices and were still in the red.
Dhaka stocks rebounded sharply Tuesday snapping five sessions of heavy losses as investors saw a silver line at the end of the tunnel after seven state-owned financial institutions declared forming a special fund to buy shares. The benchmark DSE General Index (DGEN) surged by 7.66 per cent or 398.51 points to end at 5,601.59 with small investors holding on to their portfolios and institutional investors emerging in the buying scene. The broader DSE All Shares Price Index (DSI) ended at 4,646.67, up by 7.61 per cent or 328.78 points. The DSE-20 including blue chips index gained 8.03 per cent or 282.52 points to 3,797.03. On Monday seven state-owned financial institutions--- Investment Corporation of Bangladesh (ICB), Sonali, Janata, Rupali, Agrani, Bangladesh Development banks and Sadharan Bima Corporation --- announced that they would form a special fund to buy shares. The impact of the news was instantly felt when trading began Tuesday. The DGEN gained 300 points in the first 10 minutes but the gain tapered off as the day progressed. Of the traded issues, 246 advanced, six declined and one was unchanged. "The market saw unprecedented demand pressure. Everyone turned a buyer today (Tuesday). And for the first time institutional investors turned up in the buying scene," said a top dealer. He said the market could have risen further had there been no circuit breakers on individual stocks. Transaction of most of the shares was automatically suspended after they hit upper threshold of the circuit-breakers. Many investors told the FE that they did not sell shares as they had bought shares at higher prices and were still in the red.