DSE turnover passes Tk 22b-mark
Thursday, 13 May 2010
FE Report
The benchmark index of Dhaka Stock Exchange surged to the second highest ever Wednesday with turnover passing Tk 22.0 billion-mark for the first time.
Banking and fuel and power stocks, which climbed more than four per cent and three per cent respectively, witnessed aggressive buying, sending the market to a new height.
The benchmark DSE General Index (DGEN) posted a rise of 83.50 points or 1.45 per cent to close at 5,811.73 - its second best high with the all-time high being 5,838.28 set on February 17 last - after sharp rise in the previous session.
The broader All Shares Price Index (DSI) also shot up by 71.74 points or 1.52 per cent to 4,778.75, while DSE 20 comprising blue chip index gained 19.45 points or 0.61 per cent to 3,193.80.
Netting availed by investors pushed the turnover to the all-time high of Tk 22.85 billion, up by more than 21 per cent from the previous day's record of Tk 18.75 billion.
Switching from one stock to another by the investors was the main reason for the record-breaking turnover, dealers said. But experts rang warning bell saying the market has become overheated within a very short span of time.
Under the financial adjustment or netting facility, the investors are permitted to purchase stocks with the sale proceeds immediately after completing a deal.
"We are very happy for the record turnover. But we are afraid too because of an overvalued market," said Shakil Rizvi, the DSE president. "To retain such momentum of the market, share-supply is needed," he said.
On entry of undisclosed money to the market, Rizvi said, "I am not sure about this. But it is netting that helped the market to reach a record high."
Titas Gas topped the turnover leader with shares worth Tk 1.52 billion changing hands. Its nearest rival was Beximco Ltd with shares worth Tk 1.39 billion traded.
Other turnover leaders were AB Bank, EXIM Bank, Southeast Bank, Summit Power, LankaBangla Finance, Social Islami Bank, One Bank and Premier Bank.
Chairman of the Securities and Exchange Commission Ziaul Haq Khondker suggested the investors to choose stocks cautiously. "Be careful before putting funds on stocks," he said.
Yawer Sayeed, a leading fund manager, said, "I don't find any rationality for such a bull run on the market." "Nothing extraordinary has happened in the market, which can lead it to hit records."
"The market has become overvalued within a very short span of time. Investors should be cautious to avert risk in future," he said.
Banking sector, accounting for one-fourth of market capitalisation, continued to show their muscle as the sector spiked four per cent more following 2.73 per cent and 3.61 per cent increase in the last two sessions.
All the banks gained with nine banks gaining more than five per cent. Among the banks, EXIM Bank was the largest gainer posting a rise of 15.90 per cent, followed by Trust Bank 10.32 per cent, Al-Arafah Islami Bank 9.03 per cent and Standard Bank 8.87per cent.
The banking stocks saw rally as the finance ministry gave nod on conversion of face value to Tk 100 from Tk 10 for the listed companies.
Fuel and power sector went up by three per cent riding on Titas, which advanced 4.42 per cent. Oil companies - Padma, Meghna and Jamuna - rose more than five per cent.
Telecommunications sector - one fifth of market capitalisation - edged higher for the second straight session as GP, lone listed company in the sector, gained 1.32 per cent to Tk 291.00.
Leasing or non-banking financial institutions (NBFIs) declined 1.80 per cent on profit taking. But Prime Finance gained 2.56 per cent.
Mutual funds were up by four per cent, reversing negative trend over the weeks. Insurers closed positive while pharmaceuticals closed negative.
BSRM steel, the country's leading steel maker, gained 9.70 per cent following its healthy earning report for the first quarter.
BD Wielding, the day's top gainer, rallied 19.95 per cent. It was followed by Janata Insurance, EXIM Bank, Karnaphuli Insurance, Trust Bank, Sonargaon Textile and DBH First Mutual Fund.
The major losers included First Lease International, ICB AMCL First Mutual Fund, Imam Button, Desh Garments and Premier Leasing.
The benchmark index of Dhaka Stock Exchange surged to the second highest ever Wednesday with turnover passing Tk 22.0 billion-mark for the first time.
Banking and fuel and power stocks, which climbed more than four per cent and three per cent respectively, witnessed aggressive buying, sending the market to a new height.
The benchmark DSE General Index (DGEN) posted a rise of 83.50 points or 1.45 per cent to close at 5,811.73 - its second best high with the all-time high being 5,838.28 set on February 17 last - after sharp rise in the previous session.
The broader All Shares Price Index (DSI) also shot up by 71.74 points or 1.52 per cent to 4,778.75, while DSE 20 comprising blue chip index gained 19.45 points or 0.61 per cent to 3,193.80.
Netting availed by investors pushed the turnover to the all-time high of Tk 22.85 billion, up by more than 21 per cent from the previous day's record of Tk 18.75 billion.
Switching from one stock to another by the investors was the main reason for the record-breaking turnover, dealers said. But experts rang warning bell saying the market has become overheated within a very short span of time.
Under the financial adjustment or netting facility, the investors are permitted to purchase stocks with the sale proceeds immediately after completing a deal.
"We are very happy for the record turnover. But we are afraid too because of an overvalued market," said Shakil Rizvi, the DSE president. "To retain such momentum of the market, share-supply is needed," he said.
On entry of undisclosed money to the market, Rizvi said, "I am not sure about this. But it is netting that helped the market to reach a record high."
Titas Gas topped the turnover leader with shares worth Tk 1.52 billion changing hands. Its nearest rival was Beximco Ltd with shares worth Tk 1.39 billion traded.
Other turnover leaders were AB Bank, EXIM Bank, Southeast Bank, Summit Power, LankaBangla Finance, Social Islami Bank, One Bank and Premier Bank.
Chairman of the Securities and Exchange Commission Ziaul Haq Khondker suggested the investors to choose stocks cautiously. "Be careful before putting funds on stocks," he said.
Yawer Sayeed, a leading fund manager, said, "I don't find any rationality for such a bull run on the market." "Nothing extraordinary has happened in the market, which can lead it to hit records."
"The market has become overvalued within a very short span of time. Investors should be cautious to avert risk in future," he said.
Banking sector, accounting for one-fourth of market capitalisation, continued to show their muscle as the sector spiked four per cent more following 2.73 per cent and 3.61 per cent increase in the last two sessions.
All the banks gained with nine banks gaining more than five per cent. Among the banks, EXIM Bank was the largest gainer posting a rise of 15.90 per cent, followed by Trust Bank 10.32 per cent, Al-Arafah Islami Bank 9.03 per cent and Standard Bank 8.87per cent.
The banking stocks saw rally as the finance ministry gave nod on conversion of face value to Tk 100 from Tk 10 for the listed companies.
Fuel and power sector went up by three per cent riding on Titas, which advanced 4.42 per cent. Oil companies - Padma, Meghna and Jamuna - rose more than five per cent.
Telecommunications sector - one fifth of market capitalisation - edged higher for the second straight session as GP, lone listed company in the sector, gained 1.32 per cent to Tk 291.00.
Leasing or non-banking financial institutions (NBFIs) declined 1.80 per cent on profit taking. But Prime Finance gained 2.56 per cent.
Mutual funds were up by four per cent, reversing negative trend over the weeks. Insurers closed positive while pharmaceuticals closed negative.
BSRM steel, the country's leading steel maker, gained 9.70 per cent following its healthy earning report for the first quarter.
BD Wielding, the day's top gainer, rallied 19.95 per cent. It was followed by Janata Insurance, EXIM Bank, Karnaphuli Insurance, Trust Bank, Sonargaon Textile and DBH First Mutual Fund.
The major losers included First Lease International, ICB AMCL First Mutual Fund, Imam Button, Desh Garments and Premier Leasing.