Sharp fall in share prices
Saturday, 29 November 2008
FE Report
The Dhaka Stock Exchange (DSE) witnessed a sharp fall in share prices in the week that ended Thursday with small investors bearing the brunt of the losses.
The benchmark DSE General Index (DGEN) lost about 24 per cent since June 1 this year when it reached its peak of 3207.89.
The stock market that has already been affected by several negative factors over a couple of months received a further blow when investors reacted sharply to World Bank (WB) forecast of declining economy in the current fiscal year due to the impact of global financial crisis.
During the week the benchmark DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 comprising blue chips shed 156.44 points, 126.57 points and 92.53 points to finish at 2459.89, 2035.42 and 2100.91 respectively.
But the government, economists and different stakeholders dismissed the WB's forecast and termed it 'irrational' and 'gross underestimation'.
"The estimated Gross Domestic Product (GDP) growth, as predicated by the multinational donor agency at 4.8 per cent, is not pragmatic," said Bangladesh Bank Governor Dr Salehuddin Ahmed in a function in the city Thursday.
In the last session Thursday, the benchmark index lost 100.38 points, the biggest single-day drop in four years, a day after the WB predicted the country's poor financial growth.
But in the first session Sunday, the DGEN soared 100.88 points, boosted by the news of participation in December parliamentary polls by all political parties.
"The sharp fluctuation of share prices in the stock market does not attract serious investors," said an analyst.
The market can only benefit if some attempt is made to encourage small investors to come in and invest in instruments that promise more security as well as reasonable returns, he suggested.
Calling upon the investors not to be worried, Finance Adviser Mirza Azizul Islam recently told reporters that the country's stock market behaved well compared to the world stock markets.
Most of the share prices fell during the week. Out of 293 issues traded, 18 advanced, 237 declined, two remained unchanged and 36 were not traded in the week.
The daily average turnover, however, in the week registered 19.57 per cent rise to Tk 2.25 billion against the previous week's Tk 1.88 billion. The DSE market capitalisation declined to Tk 947.95 billion from Tk 959.09 billion of the previous week.
Uttara Bank was the top turnover leader with shares worth Tk 1.08 billion traded and accounted for about 9.64 per cent of the week's total market turnover at the main bourse.
Beximco Pharma, Titas Gas, Beximco Limited, NBL, AB Bank, BRAC Bank, Square Pharma, ACI Limited and Shinepukur Ceramics Limited were the other next turnover leaders.
In the week, the top ten gainers were Zeal Bangla Sugar, Shaympur Sugar, Modern Dyeing, Purabi General Insurance, Renwick Jajneswar, Stylecraft, Reckitt Benckiser, Pragati Life Insurance, Apex Adelchi Footwear and NBL.
The top ten losers were National Tubes, Beximco Limited, Shinepukur Ceramics Limited, ACI Formulations Limited, ACI Limited, Bangladesh Online, Beximco Pharma, Agani Systems Limited, Golden Son and Bdcom Online.
The A-category issues accounted for 83.37 per cent of the total turnover in value during the week, while B-category issues shared 0.71 per cent, N-category 13.34 per cent and Z-category 2.58 per cent.
The Dhaka Stock Exchange (DSE) witnessed a sharp fall in share prices in the week that ended Thursday with small investors bearing the brunt of the losses.
The benchmark DSE General Index (DGEN) lost about 24 per cent since June 1 this year when it reached its peak of 3207.89.
The stock market that has already been affected by several negative factors over a couple of months received a further blow when investors reacted sharply to World Bank (WB) forecast of declining economy in the current fiscal year due to the impact of global financial crisis.
During the week the benchmark DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 comprising blue chips shed 156.44 points, 126.57 points and 92.53 points to finish at 2459.89, 2035.42 and 2100.91 respectively.
But the government, economists and different stakeholders dismissed the WB's forecast and termed it 'irrational' and 'gross underestimation'.
"The estimated Gross Domestic Product (GDP) growth, as predicated by the multinational donor agency at 4.8 per cent, is not pragmatic," said Bangladesh Bank Governor Dr Salehuddin Ahmed in a function in the city Thursday.
In the last session Thursday, the benchmark index lost 100.38 points, the biggest single-day drop in four years, a day after the WB predicted the country's poor financial growth.
But in the first session Sunday, the DGEN soared 100.88 points, boosted by the news of participation in December parliamentary polls by all political parties.
"The sharp fluctuation of share prices in the stock market does not attract serious investors," said an analyst.
The market can only benefit if some attempt is made to encourage small investors to come in and invest in instruments that promise more security as well as reasonable returns, he suggested.
Calling upon the investors not to be worried, Finance Adviser Mirza Azizul Islam recently told reporters that the country's stock market behaved well compared to the world stock markets.
Most of the share prices fell during the week. Out of 293 issues traded, 18 advanced, 237 declined, two remained unchanged and 36 were not traded in the week.
The daily average turnover, however, in the week registered 19.57 per cent rise to Tk 2.25 billion against the previous week's Tk 1.88 billion. The DSE market capitalisation declined to Tk 947.95 billion from Tk 959.09 billion of the previous week.
Uttara Bank was the top turnover leader with shares worth Tk 1.08 billion traded and accounted for about 9.64 per cent of the week's total market turnover at the main bourse.
Beximco Pharma, Titas Gas, Beximco Limited, NBL, AB Bank, BRAC Bank, Square Pharma, ACI Limited and Shinepukur Ceramics Limited were the other next turnover leaders.
In the week, the top ten gainers were Zeal Bangla Sugar, Shaympur Sugar, Modern Dyeing, Purabi General Insurance, Renwick Jajneswar, Stylecraft, Reckitt Benckiser, Pragati Life Insurance, Apex Adelchi Footwear and NBL.
The top ten losers were National Tubes, Beximco Limited, Shinepukur Ceramics Limited, ACI Formulations Limited, ACI Limited, Bangladesh Online, Beximco Pharma, Agani Systems Limited, Golden Son and Bdcom Online.
The A-category issues accounted for 83.37 per cent of the total turnover in value during the week, while B-category issues shared 0.71 per cent, N-category 13.34 per cent and Z-category 2.58 per cent.