Investors withdraw as DSE tries 'cooling' mechanism
FE Report | Monday, 23 June 2008
Stock prices and turnover in Dhaka Stock Exchange (DSE) continued to dip Sunday as both institutions and retail investors opted for an exit.
A group of aggrieved investors numbering 20-30 gathered in front of DSE building on the day at around 1:30 pm when the key index fell more than 57 points. Later, the law enforcing agencies took the situation under control within a few minutes without any untoward incident, witness said.
This was the second such demonstration over a span of five days.
Only 20 issues out of 231 traded ones, gained while as many as 204 declined and seven remained unchanged.
The benchmark DGEN went below 3000-mark on the day after three-month and the turnover below Tk 2.0 billion in around four months.
The Dhaka Stock Exchange (DSE) General Index (DGEN) witnessed Sunday the third largest single day fall of stock prices this year -- 55.65 points -- to close at 2985.04 against the largest single day fall of 93 points on June 12 due to panic selling and it went below 3000-mark since March 24 last.
The investors cautious move in chasing stocks created by the prime bourse's recent market cooling measures has dragged the Dhaka stocks down across the board, according to the market operators and analysts.
The total market turnover dipped to Tk 1.83 billion against previous trading day's Tk 2.27 billion. The turnover was the lowest after March 2 this year.
Two other market barometers -- All Shares Price Index (DSI) and DSE-20 (DS20) -- shed 44.82 points and 23.56 points to close at 2535.43 and 2513.89 respectively.
The poor turnover indicated that the investors were cautious in putting their money in stocks because of DSE's market controlling measures, an analyst said adding some investors were selling their sharers to minimise losses. They are not reinvesting in the falling market as part of their 'wait and see' policy.
"The market is going through a process of correction that was long overdue," he added.
The securities regulator in a recent meeting directed the DSE and the Chittagong Stock Exchange (CSE) to use restrictive tools to cool down the market when it tends to be over-heated.
The total market capitalisation came down to Tk 877.75 billion against Tk 890.16 billion.
Beximco Pharma retained the top turnover position with sharers worth Tk 117.00 million traded but its stock prices dropped 4.75 per cent to close at Tk 96.20 per share.
Square Pharma was the second top turnover leader with shares worth Tk 90.41 million changing hands.
A group of aggrieved investors numbering 20-30 gathered in front of DSE building on the day at around 1:30 pm when the key index fell more than 57 points. Later, the law enforcing agencies took the situation under control within a few minutes without any untoward incident, witness said.
This was the second such demonstration over a span of five days.
Only 20 issues out of 231 traded ones, gained while as many as 204 declined and seven remained unchanged.
The benchmark DGEN went below 3000-mark on the day after three-month and the turnover below Tk 2.0 billion in around four months.
The Dhaka Stock Exchange (DSE) General Index (DGEN) witnessed Sunday the third largest single day fall of stock prices this year -- 55.65 points -- to close at 2985.04 against the largest single day fall of 93 points on June 12 due to panic selling and it went below 3000-mark since March 24 last.
The investors cautious move in chasing stocks created by the prime bourse's recent market cooling measures has dragged the Dhaka stocks down across the board, according to the market operators and analysts.
The total market turnover dipped to Tk 1.83 billion against previous trading day's Tk 2.27 billion. The turnover was the lowest after March 2 this year.
Two other market barometers -- All Shares Price Index (DSI) and DSE-20 (DS20) -- shed 44.82 points and 23.56 points to close at 2535.43 and 2513.89 respectively.
The poor turnover indicated that the investors were cautious in putting their money in stocks because of DSE's market controlling measures, an analyst said adding some investors were selling their sharers to minimise losses. They are not reinvesting in the falling market as part of their 'wait and see' policy.
"The market is going through a process of correction that was long overdue," he added.
The securities regulator in a recent meeting directed the DSE and the Chittagong Stock Exchange (CSE) to use restrictive tools to cool down the market when it tends to be over-heated.
The total market capitalisation came down to Tk 877.75 billion against Tk 890.16 billion.
Beximco Pharma retained the top turnover position with sharers worth Tk 117.00 million traded but its stock prices dropped 4.75 per cent to close at Tk 96.20 per share.
Square Pharma was the second top turnover leader with shares worth Tk 90.41 million changing hands.