Mutual funds pull Dhaka stocks down
FE Report | Tuesday, 8 July 2008
Dhaka stocks sagged Monday with the benchmark DGEN sinking below 3000-mark after a gap of two-week, taking the turnover down with it.
The slide in stock prices was led by mainly mutual funds on the news that the securities regulator might stick to its decision on revision of mutual fund rules. Stock prices of all mutual funds declined ranging from 5.0 per cent to over 15 per cent on the day.
The Dhaka Stock Exchange (DSE) General Index (DGEN), commenced with the gain of 16 points, fell 29.73 points to end at 2990.56, a two-week low since June 23.
Two other market barometers --All Shares Price Index (DSI) and DSE-20 Index (DS20) - also shed 21.50 points and 41.80 points to close at 2564.10 and 2556.39 respectively.
The market fell Monday as the investors disposed off their holdings to avoid further losses in the wake of present dull trend witnessed by the market, said a stockbroker. " Besides, they (investors) adopt 'wait and see' policy as after selling off they are not reinvesting, resulting in low turnover."
About the falling market, another stockbroker said, " This is the season of ex-dividend, which might lead to cause the market fall and also experience low turnover."
Stocks of all mutual funds continued to drop since the Securities and Exchange Commission (SEC) decided in principle to review the mutual fund rules restricting the issuance of rights or bonus shares of mutual funds against the backdrop of the recent unusual price hike of such funds on speculation.
The falling of share prices of the funds was aggravated on the day on the news that the SEC chairman told a newspaper that there was a little scope to change the decision recently taken in principle by the commission.
The total turnover declined to Tk 2.55 billion against the previous day's Tk 3.12 billion. The losers outshined the gainers as out of 229 issues traded, 75 advanced, 145 declined and nine remained unchanged.
The total market capitalisation came down to Tk 972.33 billion against Tk 978.89 billion as well.
Stock prices of the state-run gas distribution company Titas, the second top gainer, rose 10.03 per cent to close at Tk 424.75 per share and its highest prices was Tk 470.00 per share.
Of the top ten losers, nine were from mutual funds. AIMS First Mutual Fund was the top loser with 12.91 per cent fall, followed by 1st BSRS 12.12 per cent, 6th ICB 11.21 per cent, Standard Bank Limited 11.16 per cent, 4th ICB 11.01 per cent and 8th ICB 10.65 per cent.
National Tea Corporation (NTC) had the biggest gain of 11.67 per cent, followed by Titas Gas 10.03 per cent and BD Autocars 9.16 per cent and GQ Ball Pen 8.80 per cent.
ACI Limited continued to retain the top turnover position with shares worth Tk 121.79 million traded and Square Pharma was the second tuornover leader with shares worth Tk 134.13 million changing hands.
Lanka Bangla Finance, Beximco Pharma, AIMS First Mutual Fund, Apex Adelchi, Fareast Life Insurance, Keya Cosmetics, BRAC Bank and Beximco were the other turnover leaders on the day.
Meanwhile, stock prices on the Chittagong Stock Exchange (CSE) also ended lower due to huge losses in mutual funds.
The CSCX or selective categories index lost 0.96 percent to end on 5840.97. The CASPI or all-share price index closed at 9044.95, declining 0.68 percent. The CSE-30 index fell 1.39 percent to 8087.18. Turnover on the port city bourse slumped to Tk 250.21 million from Tk 433.88 million.
The slide in stock prices was led by mainly mutual funds on the news that the securities regulator might stick to its decision on revision of mutual fund rules. Stock prices of all mutual funds declined ranging from 5.0 per cent to over 15 per cent on the day.
The Dhaka Stock Exchange (DSE) General Index (DGEN), commenced with the gain of 16 points, fell 29.73 points to end at 2990.56, a two-week low since June 23.
Two other market barometers --All Shares Price Index (DSI) and DSE-20 Index (DS20) - also shed 21.50 points and 41.80 points to close at 2564.10 and 2556.39 respectively.
The market fell Monday as the investors disposed off their holdings to avoid further losses in the wake of present dull trend witnessed by the market, said a stockbroker. " Besides, they (investors) adopt 'wait and see' policy as after selling off they are not reinvesting, resulting in low turnover."
About the falling market, another stockbroker said, " This is the season of ex-dividend, which might lead to cause the market fall and also experience low turnover."
Stocks of all mutual funds continued to drop since the Securities and Exchange Commission (SEC) decided in principle to review the mutual fund rules restricting the issuance of rights or bonus shares of mutual funds against the backdrop of the recent unusual price hike of such funds on speculation.
The falling of share prices of the funds was aggravated on the day on the news that the SEC chairman told a newspaper that there was a little scope to change the decision recently taken in principle by the commission.
The total turnover declined to Tk 2.55 billion against the previous day's Tk 3.12 billion. The losers outshined the gainers as out of 229 issues traded, 75 advanced, 145 declined and nine remained unchanged.
The total market capitalisation came down to Tk 972.33 billion against Tk 978.89 billion as well.
Stock prices of the state-run gas distribution company Titas, the second top gainer, rose 10.03 per cent to close at Tk 424.75 per share and its highest prices was Tk 470.00 per share.
Of the top ten losers, nine were from mutual funds. AIMS First Mutual Fund was the top loser with 12.91 per cent fall, followed by 1st BSRS 12.12 per cent, 6th ICB 11.21 per cent, Standard Bank Limited 11.16 per cent, 4th ICB 11.01 per cent and 8th ICB 10.65 per cent.
National Tea Corporation (NTC) had the biggest gain of 11.67 per cent, followed by Titas Gas 10.03 per cent and BD Autocars 9.16 per cent and GQ Ball Pen 8.80 per cent.
ACI Limited continued to retain the top turnover position with shares worth Tk 121.79 million traded and Square Pharma was the second tuornover leader with shares worth Tk 134.13 million changing hands.
Lanka Bangla Finance, Beximco Pharma, AIMS First Mutual Fund, Apex Adelchi, Fareast Life Insurance, Keya Cosmetics, BRAC Bank and Beximco were the other turnover leaders on the day.
Meanwhile, stock prices on the Chittagong Stock Exchange (CSE) also ended lower due to huge losses in mutual funds.
The CSCX or selective categories index lost 0.96 percent to end on 5840.97. The CASPI or all-share price index closed at 9044.95, declining 0.68 percent. The CSE-30 index fell 1.39 percent to 8087.18. Turnover on the port city bourse slumped to Tk 250.21 million from Tk 433.88 million.