Investors' response lukewarm despite loan-margin hike
Wednesday, 19 November 2008
FE Report
Dhaka stocks extended loses for the fourth consecutive day Tuesday despite the capital market regulator's decision to increase the margin of loans provided by the merchant banks.
The benchmark DSE General Index (DGEN), All Shares Price Index (DSI) and DSE20 comprising blue chips shed 11.04 points, 12.48 points and 15.91 points to end at 2620.99, 2170.11 and 2211.63 respectively.
Trading at the Dhaka Stock Exchange (DSE) started with upbeat mood from the very outset, pushing the benchmark index up more than 28 points in the first hour of trading. But it soon started to slide and the falling trend continued until end of the day's session.
The ACI Formulations and the Shinepukur Ceramics made their debut trading on the under direct listing regulations.
Share prices of the ACI Formulations Limited opened at Tk 200 per share and closed at Tk 220 a share. But its share prices reached at the peak of Tk 240 and the low of Tk 172 a share, and a total of 59800 shares worth Tk 135 million traded.
Share prices of Shinepukur Ceramics Limited opened at Tk 85 per share and closed at Tk 96 a share. However, its share prices rose as high as Tk 100 per share, and as low as Tk 83.20 per share, and a total of 71500 shares worth Tk 6.7 million traded.
The trading of lower volume of the two issues implied that this time the investors, who had burnt their fingers in case of Jamuna Oil and Meghna Petroleum, remained cautious about the two issues, said a market expert.
"Considering the fundamentals of the two companies, the prices quoted by investors on the debut trading are a bit of higher. However, share prices of Shinepukur Ceramics behaved relatively rational than that of the ACI Formulations," he added.
Meanwhile, the merchant banks except two or three did not implement the loan margin ratio raised by the securities regulator on the day as some official formalities are required to be done, according to sources in the merchant banks.
"However, most of the merchant banks might implement the SEC decision on loan margin ratio today (Wednesday) in line with their individual loan providing capacity," an official of the merchant bank said.
The day's total turnover rose to Tk 2.14 billion against previous day's Tk 1.39 billion.
Of the total 243 issues traded on the day, 49 gained, 186 declined and eight remained unchanged.
Beximco Pharma, Uttara Bank, ACI Limited, Beximco Limited, Titas Gas, Agni Systems Limited, Lankabangla Finance, GrameenS2 Mutual Fund, Dutch-Bangla Bank and Square Pharma were the day's turnover leaders in terms of value.
Dhaka stocks extended loses for the fourth consecutive day Tuesday despite the capital market regulator's decision to increase the margin of loans provided by the merchant banks.
The benchmark DSE General Index (DGEN), All Shares Price Index (DSI) and DSE20 comprising blue chips shed 11.04 points, 12.48 points and 15.91 points to end at 2620.99, 2170.11 and 2211.63 respectively.
Trading at the Dhaka Stock Exchange (DSE) started with upbeat mood from the very outset, pushing the benchmark index up more than 28 points in the first hour of trading. But it soon started to slide and the falling trend continued until end of the day's session.
The ACI Formulations and the Shinepukur Ceramics made their debut trading on the under direct listing regulations.
Share prices of the ACI Formulations Limited opened at Tk 200 per share and closed at Tk 220 a share. But its share prices reached at the peak of Tk 240 and the low of Tk 172 a share, and a total of 59800 shares worth Tk 135 million traded.
Share prices of Shinepukur Ceramics Limited opened at Tk 85 per share and closed at Tk 96 a share. However, its share prices rose as high as Tk 100 per share, and as low as Tk 83.20 per share, and a total of 71500 shares worth Tk 6.7 million traded.
The trading of lower volume of the two issues implied that this time the investors, who had burnt their fingers in case of Jamuna Oil and Meghna Petroleum, remained cautious about the two issues, said a market expert.
"Considering the fundamentals of the two companies, the prices quoted by investors on the debut trading are a bit of higher. However, share prices of Shinepukur Ceramics behaved relatively rational than that of the ACI Formulations," he added.
Meanwhile, the merchant banks except two or three did not implement the loan margin ratio raised by the securities regulator on the day as some official formalities are required to be done, according to sources in the merchant banks.
"However, most of the merchant banks might implement the SEC decision on loan margin ratio today (Wednesday) in line with their individual loan providing capacity," an official of the merchant bank said.
The day's total turnover rose to Tk 2.14 billion against previous day's Tk 1.39 billion.
Of the total 243 issues traded on the day, 49 gained, 186 declined and eight remained unchanged.
Beximco Pharma, Uttara Bank, ACI Limited, Beximco Limited, Titas Gas, Agni Systems Limited, Lankabangla Finance, GrameenS2 Mutual Fund, Dutch-Bangla Bank and Square Pharma were the day's turnover leaders in terms of value.