Dutch Bangla Bank pulls the market down
Tuesday, 25 March 2008
FE Report
Dhaka stocks dipped Monday due to sharp fall in the ex-dividend share price of Dutch Bangla Bank and partly for price correction.
Dominated by losers, the total turnover on the Dhaka Stock Exchange (DSE) also witnessed sharp decline to Tk 2.30 billion from previous day's Tk 3.16 billion.
The price adjustment of market heavyweight company, Dutch Bangla Bank, pulled the market down heavily and, moreover, price correction is partly responsible for the massive fall in indices, according to analyst and market operators.
The bank's share price plunged 73.05 per cent to close at Tk 3494.00 per share because of price adjustment after record date, market sources said.
However, the key index climbed more than 29 points in the third hour of trading before starting to slide from midday.
The benchmark DSE General Index (DGEN) sank more than 84 points on the day, highest fall since November last when it saw a record decline of 127 points following drastic fall in share price of the United Commercial Bank (UCB) on a rumour that the bank would not declare any dividends.
The DGEN and All Shares Price Index (DSI) shed 84.41 points and 63.56 points to end at 2913.34 and 2467.70 but the DSE-20, the index of blue chip shares, rose 4.70 points to finish at 2264.41.
Out of 248 issues traded on the day, prices of 93 advanced, 144 declined and 11 remained unchanged.
The total market capitalisation declined to Tk 802.08 billion from Sunday's Tk 818 billion.
Dhaka stocks dipped Monday due to sharp fall in the ex-dividend share price of Dutch Bangla Bank and partly for price correction.
Dominated by losers, the total turnover on the Dhaka Stock Exchange (DSE) also witnessed sharp decline to Tk 2.30 billion from previous day's Tk 3.16 billion.
The price adjustment of market heavyweight company, Dutch Bangla Bank, pulled the market down heavily and, moreover, price correction is partly responsible for the massive fall in indices, according to analyst and market operators.
The bank's share price plunged 73.05 per cent to close at Tk 3494.00 per share because of price adjustment after record date, market sources said.
However, the key index climbed more than 29 points in the third hour of trading before starting to slide from midday.
The benchmark DSE General Index (DGEN) sank more than 84 points on the day, highest fall since November last when it saw a record decline of 127 points following drastic fall in share price of the United Commercial Bank (UCB) on a rumour that the bank would not declare any dividends.
The DGEN and All Shares Price Index (DSI) shed 84.41 points and 63.56 points to end at 2913.34 and 2467.70 but the DSE-20, the index of blue chip shares, rose 4.70 points to finish at 2264.41.
Out of 248 issues traded on the day, prices of 93 advanced, 144 declined and 11 remained unchanged.
The total market capitalisation declined to Tk 802.08 billion from Sunday's Tk 818 billion.