Stock indices, turnover continue to decline
Saturday, 14 May 2011
FE Report
Bearish trend continued on the Dhaka Stock Exchange (DSE) for the fifth straight week with substantially low turnover. Absence of big and institutional investors, liquidity crunch in banking system and lack of confidence among the general investors were identified as the major factors behind the persistent market fall, dealers said. Market insiders said nervousness gripped the investors and many of them sold shares fearing further fall in the index which have prolonged bearish trend in the market. Of the total five trading sessions in the week, two sessions advanced while three lost. During the week, the benchmark index DGEN, the yardstick of the DSE shed 286.88 points or 4.86 per cent to close at 5,612.52. The broader DSE All Shares Price Index (DSI) ended at 4,671.86, went down by 235.31 points or 4.80 per cent. The DSE-20 index including blue chips also lost 114.95 points or 3.03 per cent to 3,681.66. The market is suffering from lack of confidence and could not get strength as there is no support from the big and institutional investors, said Ahmad Rashid Lali, managing director of Rashid Investment Services. Continuation of liquidity crunch in the money market is also affecting the stock market, he said. Out of 258 issues traded, only 18 advanced and 240 declined while no issue remained unchanged during the week. Average daily turnover value continued to decline and stood at Tk 4.1 billion (US$ 57.1 million), down by 13.48 per cent compared to Tk 4.7 billion (US$ 66.0 million) in the previous week. The market capitalization was Tk 2,715.04 billion in the opening day of the week and at the end of the week, it stood at Tk 2,613.11 billion, down by 3.75 per cent. Tannery and food & allied sectors were the only gainer of the week, gaining 0.92 per cent and 0.37 per cent while paper & printing and textile sector lost 11.82 per cent and 11.02 per cent. Among the notable losers banks, NBFIs, telecommunications and fuel and power lost 5.14 per cent, 7.31 per cent, 3.70 per cent and 2.53 per cent respectively. Beximco Limited topped the turnover list with shares worth Tk 1.10 billion changing hands during the week. The other turnover leaders were Bextex Limited, Titas Gas, Aftab Automobiles, United Airways, BSRM Steels, RN Spinning, UCBL and National Bank. Reckitt Benckiser (Bd.) Ltd was the highest gainer posting 6.75 per cent. It was followed by BSRM Steels Limited, Asia Insurance Limited, Bata Shoe, Phoenix Finance First Mutual Fund, BATBC, Berger Paints, Eighth ICB, Eastern Bank and BOC Bangladesh. Beximco Limited and Bextex Limited were the week's top losers, losing 39.50 per cent and 32.12 per cent respectively following their price adjustment after record dates. During the week, Bextex Ltd announced their plans to be merged with Beximco Ltd. According to the plan, the amalgamation will be completed with one share of Bangladesh Export Import Company Limited in exchange of 5 shares of Bextex Limited. The week's other top losers included Beacon Pharma, Square Textile, Pioneer Insurance, Sinobangla Industries, BD Thai Aluminum, Karnaphuli Insurance, Beximco Pharma and CMC Kamal. The market started the week with a drastic fall in the benchmark index on Sunday, and DGEN hitting two-month low which leads to the angry investors' took to the street once again and demonstrated in front of the country's premier bourse. The benchmark DSE General Index (DGEN), ended at 5,611.47, shedding 287.93 points or 4.88 per cent on Sunday. The DGEN came down more than two months low since March 6. On March 6, DGEN was 5,536.91. The agitated investors staged demonstrations in front of the Dhaka Stock Exchange (DSE) main building; some agitators carried placards that read 'please kill us' during the protests. The total turnover value also declined 13.0 per cent and stood at Tk 4.62 billion. After Sunday's trading general investors also raised 10 points demand under the banner of "Sharebazar Okkio parishad" including immediate resignation of Finance Minister AMA Muhith and Bangladesh Bank governor Atiur Rahman for their alleged failure to control the market.
Bearish trend continued on the Dhaka Stock Exchange (DSE) for the fifth straight week with substantially low turnover. Absence of big and institutional investors, liquidity crunch in banking system and lack of confidence among the general investors were identified as the major factors behind the persistent market fall, dealers said. Market insiders said nervousness gripped the investors and many of them sold shares fearing further fall in the index which have prolonged bearish trend in the market. Of the total five trading sessions in the week, two sessions advanced while three lost. During the week, the benchmark index DGEN, the yardstick of the DSE shed 286.88 points or 4.86 per cent to close at 5,612.52. The broader DSE All Shares Price Index (DSI) ended at 4,671.86, went down by 235.31 points or 4.80 per cent. The DSE-20 index including blue chips also lost 114.95 points or 3.03 per cent to 3,681.66. The market is suffering from lack of confidence and could not get strength as there is no support from the big and institutional investors, said Ahmad Rashid Lali, managing director of Rashid Investment Services. Continuation of liquidity crunch in the money market is also affecting the stock market, he said. Out of 258 issues traded, only 18 advanced and 240 declined while no issue remained unchanged during the week. Average daily turnover value continued to decline and stood at Tk 4.1 billion (US$ 57.1 million), down by 13.48 per cent compared to Tk 4.7 billion (US$ 66.0 million) in the previous week. The market capitalization was Tk 2,715.04 billion in the opening day of the week and at the end of the week, it stood at Tk 2,613.11 billion, down by 3.75 per cent. Tannery and food & allied sectors were the only gainer of the week, gaining 0.92 per cent and 0.37 per cent while paper & printing and textile sector lost 11.82 per cent and 11.02 per cent. Among the notable losers banks, NBFIs, telecommunications and fuel and power lost 5.14 per cent, 7.31 per cent, 3.70 per cent and 2.53 per cent respectively. Beximco Limited topped the turnover list with shares worth Tk 1.10 billion changing hands during the week. The other turnover leaders were Bextex Limited, Titas Gas, Aftab Automobiles, United Airways, BSRM Steels, RN Spinning, UCBL and National Bank. Reckitt Benckiser (Bd.) Ltd was the highest gainer posting 6.75 per cent. It was followed by BSRM Steels Limited, Asia Insurance Limited, Bata Shoe, Phoenix Finance First Mutual Fund, BATBC, Berger Paints, Eighth ICB, Eastern Bank and BOC Bangladesh. Beximco Limited and Bextex Limited were the week's top losers, losing 39.50 per cent and 32.12 per cent respectively following their price adjustment after record dates. During the week, Bextex Ltd announced their plans to be merged with Beximco Ltd. According to the plan, the amalgamation will be completed with one share of Bangladesh Export Import Company Limited in exchange of 5 shares of Bextex Limited. The week's other top losers included Beacon Pharma, Square Textile, Pioneer Insurance, Sinobangla Industries, BD Thai Aluminum, Karnaphuli Insurance, Beximco Pharma and CMC Kamal. The market started the week with a drastic fall in the benchmark index on Sunday, and DGEN hitting two-month low which leads to the angry investors' took to the street once again and demonstrated in front of the country's premier bourse. The benchmark DSE General Index (DGEN), ended at 5,611.47, shedding 287.93 points or 4.88 per cent on Sunday. The DGEN came down more than two months low since March 6. On March 6, DGEN was 5,536.91. The agitated investors staged demonstrations in front of the Dhaka Stock Exchange (DSE) main building; some agitators carried placards that read 'please kill us' during the protests. The total turnover value also declined 13.0 per cent and stood at Tk 4.62 billion. After Sunday's trading general investors also raised 10 points demand under the banner of "Sharebazar Okkio parishad" including immediate resignation of Finance Minister AMA Muhith and Bangladesh Bank governor Atiur Rahman for their alleged failure to control the market.