DSE steady amid cautious investment
Saturday, 25 July 2009
FE Report
The Dhaka Stock Exchange (DSE) passed almost steady week that ended Thursday as its share prices fell marginally amid cautious investment.
After a free fall of index in the last two weeks, the market seemed to have found a resistance point during the week and almost all the fundamentally driven stocks came close to their reasonable price.
The benchmark DSE General Index (DGEN) slid by 30.28 points or 1.05 per cent to finish at 2866.21 during the week.
The investors made cautious investment in the wake of the central bank's recent move against the commercial banks, which had invested in stock market breaching the banking rules, according to the analysts.
On the other hand, a large number of investors remained undecided on what direction the market was going to take, resulting in adoption of wait and see policy and causing for lowering turnover in the week, according to the Equity Partners Ltd (EPL) in its weekly analysis.
Investors have started to collect fund by saving or selling their current holding to invest in the upcoming initial public offerings (IPOs) which is one of the reasons for current low turnover as well as the small scale profit taking.
The average daily turnover stood at Tk 4.32 billion, 26.69 per cent down from previous week's Tk 5.90 billion.
The All Shares Price Index (DSI) lost 23.99 points or 0.99 per cent to close at 2403.67. The DSE-20 blue chip index was down by 24.51 points or 1.10 per cent to finish at 2208.57.
Out of 301 issues traded in the week, 95 went into the green zone, 144 into the red and three remained unchanged while 59 were not traded.
Currently banks are having a problem of excess liquidity. The amount of excess liquidity in banks reached as high as Tk 277 billion which indicates sluggish investment. With this excess liquidity call money rate has dropped to less than 2.0 per cent, said the EPL.
In the capital market investors became very cautious in investing in banking sector as market is expecting this excess liquidity could have a negative impact in current year's profitability, it added.
For the power sector, government has declared an addition of 800 MW to the national grid within the end of this year. "This adds a significant amount to the bottom line of both DESCO and Power Grid," the EPL said.
Recently, cement sector has become one of the most promising sectors as government is undertaking lots of infrastructure development program.
The country's leading industrial conglomerate Beximco Ltd was the top turnover leader with shares worth Tk 1.70 billion traded, accounting for 7.0 per cent of the total turnover of Tk 21.61 billion.
The next other turnover leaders were Bextex Limited, Titas Gas, AB Bank, Beximco Pharma, DESCO, Summit Power, Grameen One Scheme Two Mutual Fund, Aims 1st MF and Lankabangla Finance.
The Jute Spinners was the week's top gainer with a rise of 82.16 per cent in its share price. In response to a DSE query, the company said that there was no undisclosed price sensitive information for its recent unusual price hike.
The next other top gainers of the week were Sonali Aansh, Desh Garments, Saiham Textile, Gemini Sea Food, Prime Textile and Savar Refractories.
The Dhaka Stock Exchange (DSE) passed almost steady week that ended Thursday as its share prices fell marginally amid cautious investment.
After a free fall of index in the last two weeks, the market seemed to have found a resistance point during the week and almost all the fundamentally driven stocks came close to their reasonable price.
The benchmark DSE General Index (DGEN) slid by 30.28 points or 1.05 per cent to finish at 2866.21 during the week.
The investors made cautious investment in the wake of the central bank's recent move against the commercial banks, which had invested in stock market breaching the banking rules, according to the analysts.
On the other hand, a large number of investors remained undecided on what direction the market was going to take, resulting in adoption of wait and see policy and causing for lowering turnover in the week, according to the Equity Partners Ltd (EPL) in its weekly analysis.
Investors have started to collect fund by saving or selling their current holding to invest in the upcoming initial public offerings (IPOs) which is one of the reasons for current low turnover as well as the small scale profit taking.
The average daily turnover stood at Tk 4.32 billion, 26.69 per cent down from previous week's Tk 5.90 billion.
The All Shares Price Index (DSI) lost 23.99 points or 0.99 per cent to close at 2403.67. The DSE-20 blue chip index was down by 24.51 points or 1.10 per cent to finish at 2208.57.
Out of 301 issues traded in the week, 95 went into the green zone, 144 into the red and three remained unchanged while 59 were not traded.
Currently banks are having a problem of excess liquidity. The amount of excess liquidity in banks reached as high as Tk 277 billion which indicates sluggish investment. With this excess liquidity call money rate has dropped to less than 2.0 per cent, said the EPL.
In the capital market investors became very cautious in investing in banking sector as market is expecting this excess liquidity could have a negative impact in current year's profitability, it added.
For the power sector, government has declared an addition of 800 MW to the national grid within the end of this year. "This adds a significant amount to the bottom line of both DESCO and Power Grid," the EPL said.
Recently, cement sector has become one of the most promising sectors as government is undertaking lots of infrastructure development program.
The country's leading industrial conglomerate Beximco Ltd was the top turnover leader with shares worth Tk 1.70 billion traded, accounting for 7.0 per cent of the total turnover of Tk 21.61 billion.
The next other turnover leaders were Bextex Limited, Titas Gas, AB Bank, Beximco Pharma, DESCO, Summit Power, Grameen One Scheme Two Mutual Fund, Aims 1st MF and Lankabangla Finance.
The Jute Spinners was the week's top gainer with a rise of 82.16 per cent in its share price. In response to a DSE query, the company said that there was no undisclosed price sensitive information for its recent unusual price hike.
The next other top gainers of the week were Sonali Aansh, Desh Garments, Saiham Textile, Gemini Sea Food, Prime Textile and Savar Refractories.