No takers of Rupali stocks
FE Report | Monday, 21 July 2008
Share prices at the Dhaka Stock Exchange (DSE) continued to decline for the fifth straight session Sunday amid higher turnover.
Trading of the Rupali Bank shares resumed on the day after over eight months but there was no buyer for the same.
Market analysts said investors stayed away from Rupali stocks mainly because of the gross mismatch between the real value and the price offered.
The sellers offered Tk 2686.50 per share. The Dhaka Stock Exchange (DSE) had imposed circuit breaker beforehand fearing a sharp fall in the bank's share price due to uncertainty over the future of the bank.
The day's trading, however, started with a positive note but it lasted only for five minutes. It began to dip, pushing the benchmark over 43 points down after mid-session because of continuous selling by the retail investors.
The benchmark DSE General Index (DGEN), commenced with the gain of over seven points, shed 30.40 points to close at 2858.95.
The other market barometers -- All Shares Price Index (DSI) and DSE-20 Index (DS20) -- also fell 18.03 points and 1.89 points to end at 2483.41 and 2600.25 respectively.
Market operators blamed the securities regulator's various move and market cooling measures adopted by the bourses for the ongoing downtrend in the market.
A stock broker, requesting not to be named, said, "A number of retail investors have left the market to avoid further loss while some others are disposing of their holdings and are not reinvesting their fund in the falling market."
The Securities and Exchange Commission (SEC) and the DSE should launch massive campaign about how to choose good stocks as most of the small investors being inexperienced are prone to rumours, he added.
About Rupali Bank shares, a capital market analyst said, "The investors were not interested in the Rupali shares as they did not get real value of the bank because of circuit breaker imposed by the prime bourse."
The stock market had suspended trading of the bank shares since November 5 last year due to wild price fluctuations over its 'off-again, on-again' divestment process.
The total turnover of the DSE rose to Tk 3.07 billion from previous day's Tk 2.75 billion on the back of huge trading of Beximco Pharma and Square Pharma.
Out of 227 issues traded, 56 gained, 162 declined and nine remained unchanged. The total market capitalisation came down to Tk 963.74 billion from Tk 969.35 billion previously.
The Beximco shares continued to dominate the market on the news of amalgamation of its three industrial units. Of the top ten gainers, four were from Beximco Group.
Beximco Fisheries, a Z-category issue, posted the biggest rise of 19.13 per cent, followed by Shinepukur Holdings Limited 18.97 per cent, Dynamic Textile 16.66 per cent, Beximco Textile 14.47 per cent, Beximco 9.45 per cent, Metro Spinning 8.07 per cent, Islami Bank 7.49 per cent and Keya Cosmetics 6.83 per cent.
Stock prices of the state-run gas distribution company Titas declined 1.01 per cent to close at Tk 316.00 per share. But its highest price was Tk 349.00 a share on the day.
In its 13th trading day, 149,250 shares out of total 2,141,728 were sold on both the stock exchanges - DSE and CSE, according to the ICB, the sale agent. The company will have to offload around 8.5 million shares in the 30 trading days since its debut trading day as per direct listing regulations.
Beximco Pharma retained the top turnover leader position with shares worth Tk 351.61 million trading and Square Pharma became the second turnover leader with shares worth Tk 250.94 million changing hands.
Keya Cosmetics, Beximco, ACI Limited, Lafarge Surma Cement Limited, Lanka Bangla Finance, Apex Adelchi, Uttara Finance and Agni Systems Limited were the other top turnover leaders on the day.
The top losers were Reliance Insurance, Pragati Insurance, ICB, Mona Food and Padma Print.
Trading of the Rupali Bank shares resumed on the day after over eight months but there was no buyer for the same.
Market analysts said investors stayed away from Rupali stocks mainly because of the gross mismatch between the real value and the price offered.
The sellers offered Tk 2686.50 per share. The Dhaka Stock Exchange (DSE) had imposed circuit breaker beforehand fearing a sharp fall in the bank's share price due to uncertainty over the future of the bank.
The day's trading, however, started with a positive note but it lasted only for five minutes. It began to dip, pushing the benchmark over 43 points down after mid-session because of continuous selling by the retail investors.
The benchmark DSE General Index (DGEN), commenced with the gain of over seven points, shed 30.40 points to close at 2858.95.
The other market barometers -- All Shares Price Index (DSI) and DSE-20 Index (DS20) -- also fell 18.03 points and 1.89 points to end at 2483.41 and 2600.25 respectively.
Market operators blamed the securities regulator's various move and market cooling measures adopted by the bourses for the ongoing downtrend in the market.
A stock broker, requesting not to be named, said, "A number of retail investors have left the market to avoid further loss while some others are disposing of their holdings and are not reinvesting their fund in the falling market."
The Securities and Exchange Commission (SEC) and the DSE should launch massive campaign about how to choose good stocks as most of the small investors being inexperienced are prone to rumours, he added.
About Rupali Bank shares, a capital market analyst said, "The investors were not interested in the Rupali shares as they did not get real value of the bank because of circuit breaker imposed by the prime bourse."
The stock market had suspended trading of the bank shares since November 5 last year due to wild price fluctuations over its 'off-again, on-again' divestment process.
The total turnover of the DSE rose to Tk 3.07 billion from previous day's Tk 2.75 billion on the back of huge trading of Beximco Pharma and Square Pharma.
Out of 227 issues traded, 56 gained, 162 declined and nine remained unchanged. The total market capitalisation came down to Tk 963.74 billion from Tk 969.35 billion previously.
The Beximco shares continued to dominate the market on the news of amalgamation of its three industrial units. Of the top ten gainers, four were from Beximco Group.
Beximco Fisheries, a Z-category issue, posted the biggest rise of 19.13 per cent, followed by Shinepukur Holdings Limited 18.97 per cent, Dynamic Textile 16.66 per cent, Beximco Textile 14.47 per cent, Beximco 9.45 per cent, Metro Spinning 8.07 per cent, Islami Bank 7.49 per cent and Keya Cosmetics 6.83 per cent.
Stock prices of the state-run gas distribution company Titas declined 1.01 per cent to close at Tk 316.00 per share. But its highest price was Tk 349.00 a share on the day.
In its 13th trading day, 149,250 shares out of total 2,141,728 were sold on both the stock exchanges - DSE and CSE, according to the ICB, the sale agent. The company will have to offload around 8.5 million shares in the 30 trading days since its debut trading day as per direct listing regulations.
Beximco Pharma retained the top turnover leader position with shares worth Tk 351.61 million trading and Square Pharma became the second turnover leader with shares worth Tk 250.94 million changing hands.
Keya Cosmetics, Beximco, ACI Limited, Lafarge Surma Cement Limited, Lanka Bangla Finance, Apex Adelchi, Uttara Finance and Agni Systems Limited were the other top turnover leaders on the day.
The top losers were Reliance Insurance, Pragati Insurance, ICB, Mona Food and Padma Print.