Sell pressure pulls Dhaka stocks down
Monday, 9 January 2012
FE Report
Sell pressure pulled Dhaka stocks down Sunday, the opening day of the week, with decline in turnover value.
The market witnessed some optimism during the first hour of trading and the index gained 30 points. After that the index started to drop steadily and the index ended in the negative at the end of the session.
The index was resting marginally above 5,400 points having lost more than 49 points upon market closure.
The benchmark general index of the Dhaka Stock Exchange-DGEN, the key index of the market, slipped 49.45 points or 0.90 per cent to close at 5,417.54.
The broader DSE All Shares Price Index (DSI) went down by 40.86 points or 0.89 per cent to close at 4,520.46. The DSE-20 blue-chip index dropped 38.83 points or 0.96 per cent to close at 3,979.98.
Mr Ahmad Rashid Lali, a director of the DSE, said the market fell, as the investors booked profit on the day and it is a good indication for the market.
"The market is now on the right track and it is a normal price correction. Which is good for the market is that the investors took some profit," said Mr Ahmad, also managing director of the Rashid Investment Services.
A market insider said the central bank's upcoming monetary policy and credit tightening measures made the investors cautious.
The investors encouraged to sell shares and wanted to stay risk off trade following the 50 basis point hike in policy interest rate by the central bank, said a stock broker.
Risk aversion was fuelled further with monetary policy for the first half of 2012 to be announced shortly by the central bank, he said.
"The market opened with optimism, some large cap and small cap stocks started to rally. But market tracking index DGEN started to pull back as the cautious buyers started to restrain their buying as they were more concerned with the new monetary policy stance by the central bank and ongoing volatility in the forex market, Commented LankaBangla Securities.
The central bank is expected to declare the half yearly monetary policy in the third week of this month, it mentioned.
A contractionary monetary policy is on the cards with December 2011 inflation number reading still in double digit.
Sell pressure pulled Dhaka stocks down Sunday, the opening day of the week, with decline in turnover value.
The market witnessed some optimism during the first hour of trading and the index gained 30 points. After that the index started to drop steadily and the index ended in the negative at the end of the session.
The index was resting marginally above 5,400 points having lost more than 49 points upon market closure.
The benchmark general index of the Dhaka Stock Exchange-DGEN, the key index of the market, slipped 49.45 points or 0.90 per cent to close at 5,417.54.
The broader DSE All Shares Price Index (DSI) went down by 40.86 points or 0.89 per cent to close at 4,520.46. The DSE-20 blue-chip index dropped 38.83 points or 0.96 per cent to close at 3,979.98.
Mr Ahmad Rashid Lali, a director of the DSE, said the market fell, as the investors booked profit on the day and it is a good indication for the market.
"The market is now on the right track and it is a normal price correction. Which is good for the market is that the investors took some profit," said Mr Ahmad, also managing director of the Rashid Investment Services.
A market insider said the central bank's upcoming monetary policy and credit tightening measures made the investors cautious.
The investors encouraged to sell shares and wanted to stay risk off trade following the 50 basis point hike in policy interest rate by the central bank, said a stock broker.
Risk aversion was fuelled further with monetary policy for the first half of 2012 to be announced shortly by the central bank, he said.
"The market opened with optimism, some large cap and small cap stocks started to rally. But market tracking index DGEN started to pull back as the cautious buyers started to restrain their buying as they were more concerned with the new monetary policy stance by the central bank and ongoing volatility in the forex market, Commented LankaBangla Securities.
The central bank is expected to declare the half yearly monetary policy in the third week of this month, it mentioned.
A contractionary monetary policy is on the cards with December 2011 inflation number reading still in double digit.