Sell pressure pulls down Dhaka stocks
FE Report | Wednesday, 16 March 2011
FE Report
Sell pressure pulled down Dhaka stocks Tuesday, shedding the benchmark DGEN 139.83 points or 2.17 per cent, amid volatility throughout the whole trading session. Market insiders said all the indices lost on the day due to the profit booking in the banking and telecommunications sector. Banking sector shed 3.04 per cent, while telecommunications lost 4.02 per cent on the day. Most of the sectors ended in the red zone as market witnessed late selling pressure. Among the other major sectors, NBFIs lost 2.14 per cent, pharmaceuticals 1.66 per cent and fuel and power 2.70 per cent. General Insurance sector was the only significant gainers of the day with 2.65 per cent rise due to better dividends declaration expectation. However, the dealers said investors preferred to booked profit as the shares gained throughout the last week, putting sell pressure that forced the main indices nose-dive. The benchmark DSE General Index (DGEN) --- the market barometer went down by 2.17 per cent or 139.83 points to end at 6318.15. The broader DSE All Shares Price Index (DSI) ended at 5229.59, shedding 2.19 per cent or 116.87 points. The DSE-20 index including blue chips lost 2.23 per cent or 92.82 points to 4063.45. Mr Yawer Sayeed, managing director and CEO of AIMS Bangladesh, said there is no panic in the market but there is still some confusions among the general investors whether it will be stabled or not. As a result, the market fluctuated several times red to green throughout the session. "Profit-taking on banking sector dragged down the market, as one-third of the market capitalisation comes from the sector", said a leading merchant banker. However, the market opened with a positive note and the DGEN gained more than 100 points within five minutes of the start of the day's trading. The index, however, registered fall immediately showing a see-saw and it witnessed sharp volatility during the first two hours of trading with the index fluctuating between red and green several times. After that it fall gradually and closed 139 points lower. In the banking sector 28 issues traded, only two issues-Rupali Bank Limited and Dutch Bangla Bank Limited gained, while 26 lost. Out of 21 issues in the NBFIs sector, Peoples Leasing was the sole gainer in the sector, while 20 issues declined. In the fuel and power sector only two issues gained---BD Welding and Meghna Petroleum, while nine issues lost. Grameenphone lost Tk 6.20 a share and closed at Tk 176.8 and it lost 4.02 per cent on the day. In the pharmaceuticals sector, out of 20 issues, only three issues advanced.
Sell pressure pulled down Dhaka stocks Tuesday, shedding the benchmark DGEN 139.83 points or 2.17 per cent, amid volatility throughout the whole trading session. Market insiders said all the indices lost on the day due to the profit booking in the banking and telecommunications sector. Banking sector shed 3.04 per cent, while telecommunications lost 4.02 per cent on the day. Most of the sectors ended in the red zone as market witnessed late selling pressure. Among the other major sectors, NBFIs lost 2.14 per cent, pharmaceuticals 1.66 per cent and fuel and power 2.70 per cent. General Insurance sector was the only significant gainers of the day with 2.65 per cent rise due to better dividends declaration expectation. However, the dealers said investors preferred to booked profit as the shares gained throughout the last week, putting sell pressure that forced the main indices nose-dive. The benchmark DSE General Index (DGEN) --- the market barometer went down by 2.17 per cent or 139.83 points to end at 6318.15. The broader DSE All Shares Price Index (DSI) ended at 5229.59, shedding 2.19 per cent or 116.87 points. The DSE-20 index including blue chips lost 2.23 per cent or 92.82 points to 4063.45. Mr Yawer Sayeed, managing director and CEO of AIMS Bangladesh, said there is no panic in the market but there is still some confusions among the general investors whether it will be stabled or not. As a result, the market fluctuated several times red to green throughout the session. "Profit-taking on banking sector dragged down the market, as one-third of the market capitalisation comes from the sector", said a leading merchant banker. However, the market opened with a positive note and the DGEN gained more than 100 points within five minutes of the start of the day's trading. The index, however, registered fall immediately showing a see-saw and it witnessed sharp volatility during the first two hours of trading with the index fluctuating between red and green several times. After that it fall gradually and closed 139 points lower. In the banking sector 28 issues traded, only two issues-Rupali Bank Limited and Dutch Bangla Bank Limited gained, while 26 lost. Out of 21 issues in the NBFIs sector, Peoples Leasing was the sole gainer in the sector, while 20 issues declined. In the fuel and power sector only two issues gained---BD Welding and Meghna Petroleum, while nine issues lost. Grameenphone lost Tk 6.20 a share and closed at Tk 176.8 and it lost 4.02 per cent on the day. In the pharmaceuticals sector, out of 20 issues, only three issues advanced.