Financials drive DGEN to new mark
Friday, 11 December 2009
FE Report
The benchmark DGEN hit a new mark Thursday for the first time in a week, led by financials spurred by securities regulator's move to reshuffle the margin loan ratio on securities with price earning ratio 75.
The market opened sharply in the morning, gaining about 34 points and then it trimmed few points of early gains and finished the week with landing in the positive territory amid volatile trading.
The benchmark DSE General Index (DGEN) added 22.45 points or 0.50 per cent to close at 4437.72, which is all time high since December 1 when it was 4424.01.
The broader DSE All Shares Price Index (DSI) rose 11.66 points or 0.31 per cent to 3688.11 while the DSE-20 blue chip index moved up 35.811 points or 1.42 per cent to 2550.11.
Majority of issue prices dropped as out of 235 issues traded, 73 moved into the positive territory, 161 ended into negative and one remained unchanged.
The turnover increased sharply as it crossed Tk 11.0 billion mark after more than a month. It stood at Tk 11.44 billion, an increase of 25 per cent over the previous session.
The banking sector, the market's bellwether, gained 3.30 per cent. All except two banks performed well with eight of them rising more than five per cent.
Banking sector pulled the market up as it was considered as lowest price earning (PE) ratio sector in recent times, dealers said.
On Wednesday, the Scurrilities and Exchange Commission (SEC) directed the merchant bankers to immediately stop providing or disbursing of any further margin loan or credit facilities to their clients to purchase the equity securities with PE ratio of above 75 until further order.
A PE ratio is a company's current share price compared to its earnings per share. In general, a high PE ratio reflects that investors expect higher earnings in future or a strong chance that they will be able to make a capital gain.
Grameenphone, the most weighted shares, declined 0.88 per cent to end at Tk 169.20 after rebounding previous day.
The mutual funds sector went down by 1.05 per cent and pharmaceutical sector ended 0.53 per cent higher.
The benchmark DGEN hit a new mark Thursday for the first time in a week, led by financials spurred by securities regulator's move to reshuffle the margin loan ratio on securities with price earning ratio 75.
The market opened sharply in the morning, gaining about 34 points and then it trimmed few points of early gains and finished the week with landing in the positive territory amid volatile trading.
The benchmark DSE General Index (DGEN) added 22.45 points or 0.50 per cent to close at 4437.72, which is all time high since December 1 when it was 4424.01.
The broader DSE All Shares Price Index (DSI) rose 11.66 points or 0.31 per cent to 3688.11 while the DSE-20 blue chip index moved up 35.811 points or 1.42 per cent to 2550.11.
Majority of issue prices dropped as out of 235 issues traded, 73 moved into the positive territory, 161 ended into negative and one remained unchanged.
The turnover increased sharply as it crossed Tk 11.0 billion mark after more than a month. It stood at Tk 11.44 billion, an increase of 25 per cent over the previous session.
The banking sector, the market's bellwether, gained 3.30 per cent. All except two banks performed well with eight of them rising more than five per cent.
Banking sector pulled the market up as it was considered as lowest price earning (PE) ratio sector in recent times, dealers said.
On Wednesday, the Scurrilities and Exchange Commission (SEC) directed the merchant bankers to immediately stop providing or disbursing of any further margin loan or credit facilities to their clients to purchase the equity securities with PE ratio of above 75 until further order.
A PE ratio is a company's current share price compared to its earnings per share. In general, a high PE ratio reflects that investors expect higher earnings in future or a strong chance that they will be able to make a capital gain.
Grameenphone, the most weighted shares, declined 0.88 per cent to end at Tk 169.20 after rebounding previous day.
The mutual funds sector went down by 1.05 per cent and pharmaceutical sector ended 0.53 per cent higher.