Stocks back to negative zone
FE Report | Saturday, 16 April 2011
FE Report
Dhaka stocks returned to negative territory last week with all three indices declining moderately after two weeks of bullish trend as investors are more cautious over the outcome of the much talked about stock market probe report, which was submitted recently to the ministry of finance. During the week, the benchmark index DGEN shed 154.24 points or 2.36 per cent to 6,386.36. The broader DSE All Shares Price Index (DSI) ended at 5,303.13 went down by 121.25 points or 2.24 per cent. The DSE-20 index including blue chips also lost 100.68 points or 2.50 per cent to 3,931.05. Out of 263 issues traded, 114 advanced and 149 declined while no issue remained unchanged during the week. Having one less trading session because of public holiday on the occasion of beginning Bangla New Year, the total turnover stood at Tk 41.6 billion (USD 603.1 million) which is lower by 20.9 per cent compared to previous week's Tk 52.6 billion (USD 762.8 million). However, average daily turnover in the week remained closed to the level of that of the previous week. Average daily turnover was Tk 10.4 billion (USD 150.8 million) compared to Tk 10.5 billion (USD 152.6 million) in the previous week. In the opening day of the week, the market capitalization was Tk 2,920.33 billion and at the closing session it stood at Tk 2,869.89 billion which was 1.73 per cent lower. The probe committee formed to investigate the reasons behind the large scale correction during December-January period has finished its probe report and submitted it to the Finance Ministry on Thursday last week. "Although the findings of the report is scheduled to be made public after further scrutiny, a handful of high profile names have been cited in the media, which was one of the main reasons behind the sharp decline in index on Monday and subsequent lower trade volume in the latter half of the week," said BRAC-EPL in its weekly market commentary. An investor, seeking anonymity told FE that the probe report is very sensitive for the future shape of the stock market. It will be a great challenge for the incumbent government regarding how they deal with the report. "From the investors perspective the government should emphasize mostly over the recommendation of the probe committee rather than putting pressure on certain quarter which might ultimately proved to be harmful for the future of the stock market" he said adding that most of the investors passed anxious week assuming further volatility in the trade following the submission of the report. Meanwhile, Most of the major sectors finished negative in the week. Banking sector lost 4.36 per cent, NBFIs 2.54 per cent and general insurances 1.56 per cent among the losers. Among other major sectors, telecommunications lost 2.68 per cent, pharmaceuticals 1.69 per cent and cement 1.03 per cent also finished lower than previous week's level. Among the few gainers of the week, fuel and power gained 0.36 per cent, tannery 0.66 per cent and life insurance 1.89 per cent. The week started with a positive note with DGEN gaining marginally by 0.24 per cent or 15.91 points Sunday amid volatility as many investors were confused over the outcome of the submitted stock market probe report. Sunday was the first trading session after submission of the much-talked share market scam repot. The probe body has mainly blamed the Securities and Exchange Commission (SEC) for the crash and suggested to reform the regulatory body. However, the next trading session, on Monday the market experienced a somewhat big jolt with DGEN retracing by 293.83 points or 4.48 per cent reflecting some negative impact of the extensive probe report published on recent share market scam. The Monday's share price fall was two months biggest fall in DGEN since February 13. However, market turnover was quite healthy and settled above Tk 12 billion for the third consecutive sessions. Although DGEN recovered decently on Tuesday by gaining 160.53 points or 2.56 per cent, turnover dried out substantially with a trade volume of Tk 7.9 billion. However, the recovery did not sustain as DGEN dropped 36.87 points or 0.57 per cent on Wednesday, the closing session of the week. Beximco Limited topped the week's top turnover list with shares worth Tk 1.65 billion changing hands. The other turnover leaders were Titas Gas, Aftab Automobiles, Bextex, DESCO, Bay Leasing, Fu-Wang Ceramics, Square Pharma, BSRM Steels and Olympic Industries. Mercantile Insurance was the week's top loser followed by EXIM Bank, Summit Power, Standard Bank Limited, Al-Arafah Islami Bank, Summit Alliance Port Limited, Ocean Containers Limited, Northern Jute manufacturing Company Limited, BD Finance and Jamuna Oil. Eastern Insurance was the week's highest gainer followed by Imam Button, Desh Garment, BSC, First BSRS, Grameen Mutual One, GQ Ball Pen, AIMS First Mutual Fund, Monno Stafflers and Monno Jutex. During the week, a total of nine companies announced corporate declaration for the year ended December 31, 2010. Among them, Active Fine Chemicals recommended 15 per cent bonus share, Asia Pacific Insurance 10 per cent cash, BD Finance 22 per cent bonus, BD Lamps 35 per cent Cash, Northern Insurance 12 per cent bonus, Phoenix Insurance 35 per cent bonus, Safko Spinning 16 per cent bonus and Shahjalal Islami Bank announced 30 per cent bonus for the year 2010. Only Lafarge Surma Cement didn't offer any dividend for their investors as it failed to show positive earning till 2010 after starting their operation in 2003.
Dhaka stocks returned to negative territory last week with all three indices declining moderately after two weeks of bullish trend as investors are more cautious over the outcome of the much talked about stock market probe report, which was submitted recently to the ministry of finance. During the week, the benchmark index DGEN shed 154.24 points or 2.36 per cent to 6,386.36. The broader DSE All Shares Price Index (DSI) ended at 5,303.13 went down by 121.25 points or 2.24 per cent. The DSE-20 index including blue chips also lost 100.68 points or 2.50 per cent to 3,931.05. Out of 263 issues traded, 114 advanced and 149 declined while no issue remained unchanged during the week. Having one less trading session because of public holiday on the occasion of beginning Bangla New Year, the total turnover stood at Tk 41.6 billion (USD 603.1 million) which is lower by 20.9 per cent compared to previous week's Tk 52.6 billion (USD 762.8 million). However, average daily turnover in the week remained closed to the level of that of the previous week. Average daily turnover was Tk 10.4 billion (USD 150.8 million) compared to Tk 10.5 billion (USD 152.6 million) in the previous week. In the opening day of the week, the market capitalization was Tk 2,920.33 billion and at the closing session it stood at Tk 2,869.89 billion which was 1.73 per cent lower. The probe committee formed to investigate the reasons behind the large scale correction during December-January period has finished its probe report and submitted it to the Finance Ministry on Thursday last week. "Although the findings of the report is scheduled to be made public after further scrutiny, a handful of high profile names have been cited in the media, which was one of the main reasons behind the sharp decline in index on Monday and subsequent lower trade volume in the latter half of the week," said BRAC-EPL in its weekly market commentary. An investor, seeking anonymity told FE that the probe report is very sensitive for the future shape of the stock market. It will be a great challenge for the incumbent government regarding how they deal with the report. "From the investors perspective the government should emphasize mostly over the recommendation of the probe committee rather than putting pressure on certain quarter which might ultimately proved to be harmful for the future of the stock market" he said adding that most of the investors passed anxious week assuming further volatility in the trade following the submission of the report. Meanwhile, Most of the major sectors finished negative in the week. Banking sector lost 4.36 per cent, NBFIs 2.54 per cent and general insurances 1.56 per cent among the losers. Among other major sectors, telecommunications lost 2.68 per cent, pharmaceuticals 1.69 per cent and cement 1.03 per cent also finished lower than previous week's level. Among the few gainers of the week, fuel and power gained 0.36 per cent, tannery 0.66 per cent and life insurance 1.89 per cent. The week started with a positive note with DGEN gaining marginally by 0.24 per cent or 15.91 points Sunday amid volatility as many investors were confused over the outcome of the submitted stock market probe report. Sunday was the first trading session after submission of the much-talked share market scam repot. The probe body has mainly blamed the Securities and Exchange Commission (SEC) for the crash and suggested to reform the regulatory body. However, the next trading session, on Monday the market experienced a somewhat big jolt with DGEN retracing by 293.83 points or 4.48 per cent reflecting some negative impact of the extensive probe report published on recent share market scam. The Monday's share price fall was two months biggest fall in DGEN since February 13. However, market turnover was quite healthy and settled above Tk 12 billion for the third consecutive sessions. Although DGEN recovered decently on Tuesday by gaining 160.53 points or 2.56 per cent, turnover dried out substantially with a trade volume of Tk 7.9 billion. However, the recovery did not sustain as DGEN dropped 36.87 points or 0.57 per cent on Wednesday, the closing session of the week. Beximco Limited topped the week's top turnover list with shares worth Tk 1.65 billion changing hands. The other turnover leaders were Titas Gas, Aftab Automobiles, Bextex, DESCO, Bay Leasing, Fu-Wang Ceramics, Square Pharma, BSRM Steels and Olympic Industries. Mercantile Insurance was the week's top loser followed by EXIM Bank, Summit Power, Standard Bank Limited, Al-Arafah Islami Bank, Summit Alliance Port Limited, Ocean Containers Limited, Northern Jute manufacturing Company Limited, BD Finance and Jamuna Oil. Eastern Insurance was the week's highest gainer followed by Imam Button, Desh Garment, BSC, First BSRS, Grameen Mutual One, GQ Ball Pen, AIMS First Mutual Fund, Monno Stafflers and Monno Jutex. During the week, a total of nine companies announced corporate declaration for the year ended December 31, 2010. Among them, Active Fine Chemicals recommended 15 per cent bonus share, Asia Pacific Insurance 10 per cent cash, BD Finance 22 per cent bonus, BD Lamps 35 per cent Cash, Northern Insurance 12 per cent bonus, Phoenix Insurance 35 per cent bonus, Safko Spinning 16 per cent bonus and Shahjalal Islami Bank announced 30 per cent bonus for the year 2010. Only Lafarge Surma Cement didn't offer any dividend for their investors as it failed to show positive earning till 2010 after starting their operation in 2003.