DSE witnesses biggest fall in two months
Tuesday, 12 April 2011
FE Report
Dhaka stocks slipped more than 4.0 per cent Monday, reflecting some negative impact of the extensive probe report published on recent share market scam. Although government is yet to publish the share scam report formally, most of the local media has published name of big market manipulators citing the probe report which led to big fall on the day, dealers observed. The Monday's fall was the two months biggest fall in DGEN since February 13. On February 13, the benchmark index DGEN fell by 473 points. Meanwhile, witnessing major fall a group of investors gathered in front of the Dhaka Stock Exchange (DSE) main building at about 2:30pm and tried to block the road in protest against the fall. However, police and RAB personnel rush to spot and brought the situation under control. Meanwhile, the market opened with a negative note in the morning and lost more than 28 points within five minutes. After that it started to fall gradually and closed 293 points lower. The benchmark DSE General Index (DGEN), the yardstick of the DSE, ended at 6,262.69, shedding 293.82 points or 4.48 per cent. The broader All Shares Price Index (DSI) slipped 237.99 points or 4.38 per cent to close at 5,200.84. The DSE-20 index comprising blue-chip shares lost 138.49 points or 3.45 per cent to 3874.76. AB Mirza Azizul Islam, former finance adviser to the caretaker government, said the market tumbled as some big manipulators' name exposed in the share market scam report through the media. "Many investors are following 'wait and see' policy over the impact of certain outcomes of the share scam report," said Mr Aziz who was also the chairman of the Securities and Exchange Commission (SEC). Mr Aziz said the market is still at a standard level as the DGEN stood at the level of 6,262. Earlier, he said that the standard level of DGEN should be 6,000 to 6,500. However, he said although the market has faced volatility in most of the recent trading sessions turnover value indicated that the market's overall health is good. "The transaction amount is satisfactory with signs of market stability and greater participation of traders and the market will be stable soon and there is no reason to be anxious about it," Mr Islam suggested. Echoing him, Ahsanul Islam Titu, senior vice president of the DSE, said the market fell as some big investors' name came to light. Meanwhile, market turnover was quite healthy and settled above Tk 12 billion for the third consecutive sessions. The day's daily turnover stood at Tk 12.24 billion in value terms, down by 5.10 per cent, from Tk 12.90 billion in the previous session. However, some investors blamed the market manipulators (names of whom exposed in the share scam report) as they went for trigger sell which was the main reason for the market fall. Except mutual fund sector, share of all sector lost on the day. Mutual fund advanced marginally 0.57 per cent on the day. Banking sector lost 4.41 per cent, while NBFIs 5.37 per cent, telecommunication 2.35 per cent and fuel and power 3.93 per cent on the day. Continued to page 20
Dhaka stocks slipped more than 4.0 per cent Monday, reflecting some negative impact of the extensive probe report published on recent share market scam. Although government is yet to publish the share scam report formally, most of the local media has published name of big market manipulators citing the probe report which led to big fall on the day, dealers observed. The Monday's fall was the two months biggest fall in DGEN since February 13. On February 13, the benchmark index DGEN fell by 473 points. Meanwhile, witnessing major fall a group of investors gathered in front of the Dhaka Stock Exchange (DSE) main building at about 2:30pm and tried to block the road in protest against the fall. However, police and RAB personnel rush to spot and brought the situation under control. Meanwhile, the market opened with a negative note in the morning and lost more than 28 points within five minutes. After that it started to fall gradually and closed 293 points lower. The benchmark DSE General Index (DGEN), the yardstick of the DSE, ended at 6,262.69, shedding 293.82 points or 4.48 per cent. The broader All Shares Price Index (DSI) slipped 237.99 points or 4.38 per cent to close at 5,200.84. The DSE-20 index comprising blue-chip shares lost 138.49 points or 3.45 per cent to 3874.76. AB Mirza Azizul Islam, former finance adviser to the caretaker government, said the market tumbled as some big manipulators' name exposed in the share market scam report through the media. "Many investors are following 'wait and see' policy over the impact of certain outcomes of the share scam report," said Mr Aziz who was also the chairman of the Securities and Exchange Commission (SEC). Mr Aziz said the market is still at a standard level as the DGEN stood at the level of 6,262. Earlier, he said that the standard level of DGEN should be 6,000 to 6,500. However, he said although the market has faced volatility in most of the recent trading sessions turnover value indicated that the market's overall health is good. "The transaction amount is satisfactory with signs of market stability and greater participation of traders and the market will be stable soon and there is no reason to be anxious about it," Mr Islam suggested. Echoing him, Ahsanul Islam Titu, senior vice president of the DSE, said the market fell as some big investors' name came to light. Meanwhile, market turnover was quite healthy and settled above Tk 12 billion for the third consecutive sessions. The day's daily turnover stood at Tk 12.24 billion in value terms, down by 5.10 per cent, from Tk 12.90 billion in the previous session. However, some investors blamed the market manipulators (names of whom exposed in the share scam report) as they went for trigger sell which was the main reason for the market fall. Except mutual fund sector, share of all sector lost on the day. Mutual fund advanced marginally 0.57 per cent on the day. Banking sector lost 4.41 per cent, while NBFIs 5.37 per cent, telecommunication 2.35 per cent and fuel and power 3.93 per cent on the day. Continued to page 20