Stocks close flat Investors take cautious stance
Wednesday, 7 July 2010
FE Report
Dhaka stocks closed flat in the heavily fluctuating market Tuesday as investors turned cautious in the final hour anticipating further price curbing measures from the securities regulator.
The benchmark DSE General Index (DGEN) ended at 6354.68 with a fractional gain of 0.01 points, after hitting highest 6426.70 at noon.
The broader All Shares Price Index (DSI) slightly rose 0.01 per cent or 0.98 points to 5279.83. The DSE 20 index comprising blue chip shares ended at 3754.96, shedding 0.23 per cent or 8.79 points.
Dealers said investors took cautious stance in the final hour apprehending a possible price-curbing decision from the Securities and Exchange Commission (SEC).
"Trade slowed down in the last part of the day as investors did not want to take much risk," said a stockbroker.
News of the meeting between SEC and stakeholders that spread in the market during trading hour gave an excuse to the investors to book profit after stocks hit highest in the previous session, he said.
Being concerned over the market's sharp rise in the day, the SEC called an emergency meeting with bourses and merchant bankers to discuss about the current market situation.
"No decision was taken but regulator asked the stakeholders to comply with the securities rules strictly," said Anwarul Kabir Bhuiyan, executive director of the SEC.
With an improvement in the days turnover, many front line stocks managed to close in the positive territory. Out of 243 issues traded, 140 closed positive, 97 negative and six remained unchanged.
Turnover stood at Tk 22.00 billion, an increase of 5.56 per cent over the previous session.
Telecommunications, Insurance and Ceramic sectors were the major sectors to close in the positive terrain while pharmaceuticals, fuel and power, and engineering sectors led the list of negative performers.
Grameenphone, the country's top mobile phone firm, rose 2.49 per cent, notching up its two consecutive session of gains.
Insurance sector spiked 2.56 per cent driven by National Life Insurance that gained 6.61 per cent.
Ceramic sector was up by 1.58 per cent due to RAK Ceramic and Monno Ceramic that rallied 1.98 per cent and 5.88 per cent respectively.
Banking and leasing or non-banking financial institutions ended flat after climbing highest in the previous session.
Pharmaceuticals sector was down 0.90 per cent, fuel and power 0.21 per cent and engineering 0.5 per cent.
Dhaka stocks closed flat in the heavily fluctuating market Tuesday as investors turned cautious in the final hour anticipating further price curbing measures from the securities regulator.
The benchmark DSE General Index (DGEN) ended at 6354.68 with a fractional gain of 0.01 points, after hitting highest 6426.70 at noon.
The broader All Shares Price Index (DSI) slightly rose 0.01 per cent or 0.98 points to 5279.83. The DSE 20 index comprising blue chip shares ended at 3754.96, shedding 0.23 per cent or 8.79 points.
Dealers said investors took cautious stance in the final hour apprehending a possible price-curbing decision from the Securities and Exchange Commission (SEC).
"Trade slowed down in the last part of the day as investors did not want to take much risk," said a stockbroker.
News of the meeting between SEC and stakeholders that spread in the market during trading hour gave an excuse to the investors to book profit after stocks hit highest in the previous session, he said.
Being concerned over the market's sharp rise in the day, the SEC called an emergency meeting with bourses and merchant bankers to discuss about the current market situation.
"No decision was taken but regulator asked the stakeholders to comply with the securities rules strictly," said Anwarul Kabir Bhuiyan, executive director of the SEC.
With an improvement in the days turnover, many front line stocks managed to close in the positive territory. Out of 243 issues traded, 140 closed positive, 97 negative and six remained unchanged.
Turnover stood at Tk 22.00 billion, an increase of 5.56 per cent over the previous session.
Telecommunications, Insurance and Ceramic sectors were the major sectors to close in the positive terrain while pharmaceuticals, fuel and power, and engineering sectors led the list of negative performers.
Grameenphone, the country's top mobile phone firm, rose 2.49 per cent, notching up its two consecutive session of gains.
Insurance sector spiked 2.56 per cent driven by National Life Insurance that gained 6.61 per cent.
Ceramic sector was up by 1.58 per cent due to RAK Ceramic and Monno Ceramic that rallied 1.98 per cent and 5.88 per cent respectively.
Banking and leasing or non-banking financial institutions ended flat after climbing highest in the previous session.
Pharmaceuticals sector was down 0.90 per cent, fuel and power 0.21 per cent and engineering 0.5 per cent.