GP propels DSE index over historic 5000-mark
Friday, 22 January 2010
FE Report
A Grameenphone gain of 7.71 percent thrust the Dhaka Stock Exchange (DSE) benchmark index above historic 5000 mark on Thursday.
Grameenphone, the country's largest mobile operator and accounts for more than 16 per cent of the total market capitalisation, gained Tk 18 to close at Tk 244.44 on the news that its board of directors resolved to form and incorporate an IT company under the name Grameenphone IT Ltd.
Grameenphone topped the turnover list with 5070200 shares worth Tk 1.20 billion traded on the day, the highest ever single-day transaction in shares by a company in the country's stock market history.
It broke its own record set on January 21 when its shares worth Tk 1.07 billion changing hands at the DSE. Beximco Ltd was the second top turnover leader with shares worth Tk 581.37 million traded.
The market kicked-off the day with a bullish trend and maintained the tone throughout the session. Investors preferred trading in telecommunication, financials, mutual funds and energy stocks.
DGEN ended the session with a gain of 96.62 points or 1.93 per cent -- highest single-day rise in a week -- to end at 5095.21, which is a new high.
Broader All-Shares Price Index (DSI) rose 77.37 points or 1.87 per cent to close at 4204.06, while DSE 20 comprising blue chip index moved up 11.69 points or 0.41 per cent to 2824.92.
"The benchmark index crossing 5000-mark is a milestone for the bourse and reflected investors' confidence," said Rakibur Rahman, president of the DSE. However, an analyst on condition of anonymity said, " It's an inflated index based on miscalculation."
"It's high time to concentrate on supply side," said Yawer Sayeed, a leading fund manager.
Out of 241 issues traded, 153 advanced, 83 declined and five remained unchanged.
The turnover increased to Tk 12.41 billion, up 12.41 per cent from the previous session's Tk 11.08 billion.
Other leading turnover leaders included Maksons Spinning, Beximco Pharma, Meghna Petroleum, AB Bank, Jamuna Oil and Mercantile Bank.
Most banking shares gained with Dutch Bangla Bank (DBBL) posting highest 7.65 per cent rise.
Majority of the non-banking financial institutions (NBFIs) rose 0.24 per cent. The mutual funds gained 1.23 per cent recovering previous day's loss.
Govt warned of possible disruptions in SoE share offloading process
DSE president Md Rakibur Rahman on Thursday warned the government of a possible disruption in its process of offloading shares of 26 state-owned enterprises (SoEs) in the share market.
"If offloaded as per the finance ministry decision, the shares of the SoEs will prop up the market, which needs further boost in supply side," he told reporters as the DSE celebrated the DSE benchmark index crossing of historic 5,000 mark on Thursday.
He said there was an incident of blocking release of the shares of the government enterprises into the market. So, this time the government must handle the issue carefully, he added.
Mr. Rahman said currently, the share supply in the market is not adequate. In spite of this inadequate supply, the general index reached above 5000 mark. So, it can be anticipated that the shares of about 25 per cent listed companies are over-valued.
"The investors must think twice before purchasing the over-valued shares," he cautioned.
DSE Senior Vice-President Saiful Islam and Vice-President Shakil Rizvi were also present at the press briefing.
A Grameenphone gain of 7.71 percent thrust the Dhaka Stock Exchange (DSE) benchmark index above historic 5000 mark on Thursday.
Grameenphone, the country's largest mobile operator and accounts for more than 16 per cent of the total market capitalisation, gained Tk 18 to close at Tk 244.44 on the news that its board of directors resolved to form and incorporate an IT company under the name Grameenphone IT Ltd.
Grameenphone topped the turnover list with 5070200 shares worth Tk 1.20 billion traded on the day, the highest ever single-day transaction in shares by a company in the country's stock market history.
It broke its own record set on January 21 when its shares worth Tk 1.07 billion changing hands at the DSE. Beximco Ltd was the second top turnover leader with shares worth Tk 581.37 million traded.
The market kicked-off the day with a bullish trend and maintained the tone throughout the session. Investors preferred trading in telecommunication, financials, mutual funds and energy stocks.
DGEN ended the session with a gain of 96.62 points or 1.93 per cent -- highest single-day rise in a week -- to end at 5095.21, which is a new high.
Broader All-Shares Price Index (DSI) rose 77.37 points or 1.87 per cent to close at 4204.06, while DSE 20 comprising blue chip index moved up 11.69 points or 0.41 per cent to 2824.92.
"The benchmark index crossing 5000-mark is a milestone for the bourse and reflected investors' confidence," said Rakibur Rahman, president of the DSE. However, an analyst on condition of anonymity said, " It's an inflated index based on miscalculation."
"It's high time to concentrate on supply side," said Yawer Sayeed, a leading fund manager.
Out of 241 issues traded, 153 advanced, 83 declined and five remained unchanged.
The turnover increased to Tk 12.41 billion, up 12.41 per cent from the previous session's Tk 11.08 billion.
Other leading turnover leaders included Maksons Spinning, Beximco Pharma, Meghna Petroleum, AB Bank, Jamuna Oil and Mercantile Bank.
Most banking shares gained with Dutch Bangla Bank (DBBL) posting highest 7.65 per cent rise.
Majority of the non-banking financial institutions (NBFIs) rose 0.24 per cent. The mutual funds gained 1.23 per cent recovering previous day's loss.
Govt warned of possible disruptions in SoE share offloading process
DSE president Md Rakibur Rahman on Thursday warned the government of a possible disruption in its process of offloading shares of 26 state-owned enterprises (SoEs) in the share market.
"If offloaded as per the finance ministry decision, the shares of the SoEs will prop up the market, which needs further boost in supply side," he told reporters as the DSE celebrated the DSE benchmark index crossing of historic 5,000 mark on Thursday.
He said there was an incident of blocking release of the shares of the government enterprises into the market. So, this time the government must handle the issue carefully, he added.
Mr. Rahman said currently, the share supply in the market is not adequate. In spite of this inadequate supply, the general index reached above 5000 mark. So, it can be anticipated that the shares of about 25 per cent listed companies are over-valued.
"The investors must think twice before purchasing the over-valued shares," he cautioned.
DSE Senior Vice-President Saiful Islam and Vice-President Shakil Rizvi were also present at the press briefing.