Stocks close higher amid low turnover
Tuesday, 10 May 2011
FE Report
Dhaka stocks closed higher amid high volatility on Monday although early slump prompted the angry investors to stage demonstrations for the second consecutive day. The small investors took to the street coming out from the different brokerage houses at about 11.50am when the DGEN fell more than 200 points. In the later part of the trading the market made a rebound with support from the institutional investors including Investment Corporation of Bangladesh (ICB), market insiders said. At the end of the day, the benchmark DSE General Index (DGEN), the yardstick of the DSE ended at 5,638.80, rising 27.34 points or 0.48 per cent. The broader All Shares Price Index (DSI) rose 21.11 points or 0.45 per cent to 4,690.35. The DSE-20 index comprising blue-chip shares advanced 18.97 points or 0.51 per cent to 3,691.76. Meanwhile, a group of investors under the banner of 'Bangladesh Share Investors Association' observed sit-in programme in front of the DSE main building protesting the share price fall. During the demonstration, police picked-up an investor named Amir Hossain, from the DSE main building as he allegedly tried to vandalize a car, later he was released. The aggrieved investors chanted slogans against the finance minister, the Bangladesh Bank governor, DSE president and the SEC chairman for their alleged failure in taking effective steps to stabilise the country's stock market. Vehicle movement in the bustling business hub Motijheel Shapla Chattar to Ittefaq Crossing came to a halt for about four hour till 3.0pm due to demonstrations and sit-in programme. They also sought the Prime Minister's 'direct intervention' to solve the share market crisis and bring back market stability. Investors also demanded to reduce the SLR (Statutory Liquidity Requirements) and CRR (Cash Reserve Ratio) of the commercial banks to stabilise the market. Yawer Sayeed, managing director of AIMS of Bangladesh said the investors are losing confidence and they are also confused over the recruitment of the SEC new chairman as the government is making delay over the issue. He said, the government remained in dilemma over the recruitment of the new chairman of the SEC and taking action against the market manipulators. "Though the market closed positive today, it was gained with the artificial support," he said. On the other hand, the vested quarters and market manipulators are still active in the market, he alleged. "The government should take initiative in proper way and proper time, otherwise investors' confidence won't be restored," he added. A total of 51.37 million shares changed hands on the day against 52.18 million in the previous session. The trade deals also decreased to 116,828 against Sunday's 121,469. Total market capitalization increased slightly and stood at Tk 2620.23 billion against Tk 2,608.75 billion in the previous session. Turnover continued to decline and stood at Tk 4.27 billion compared to Tk 4.62 billion in the previous session. Out of 253 issues traded, 172 advanced, 76 declined and five remained unchanged. Among the major sectors, banks, the market's bellwether gained 0.77 per cent, telecommunications 1.77 per cent and fuel and power 1.11 per cent while NBFIs lost 1.10 per cent. Among other sector cement, general insurance and ceramics gained 2.83 per cent, 1.16 per cent and 1.76 per cent respectively while pharmaceuticals, life insurance and textile lost 0.07 per cent, 0.39 per cent and 0.53 per cent. Beximco Ltd was the most traded share with turnover value of Tk 225.15 million.
Dhaka stocks closed higher amid high volatility on Monday although early slump prompted the angry investors to stage demonstrations for the second consecutive day. The small investors took to the street coming out from the different brokerage houses at about 11.50am when the DGEN fell more than 200 points. In the later part of the trading the market made a rebound with support from the institutional investors including Investment Corporation of Bangladesh (ICB), market insiders said. At the end of the day, the benchmark DSE General Index (DGEN), the yardstick of the DSE ended at 5,638.80, rising 27.34 points or 0.48 per cent. The broader All Shares Price Index (DSI) rose 21.11 points or 0.45 per cent to 4,690.35. The DSE-20 index comprising blue-chip shares advanced 18.97 points or 0.51 per cent to 3,691.76. Meanwhile, a group of investors under the banner of 'Bangladesh Share Investors Association' observed sit-in programme in front of the DSE main building protesting the share price fall. During the demonstration, police picked-up an investor named Amir Hossain, from the DSE main building as he allegedly tried to vandalize a car, later he was released. The aggrieved investors chanted slogans against the finance minister, the Bangladesh Bank governor, DSE president and the SEC chairman for their alleged failure in taking effective steps to stabilise the country's stock market. Vehicle movement in the bustling business hub Motijheel Shapla Chattar to Ittefaq Crossing came to a halt for about four hour till 3.0pm due to demonstrations and sit-in programme. They also sought the Prime Minister's 'direct intervention' to solve the share market crisis and bring back market stability. Investors also demanded to reduce the SLR (Statutory Liquidity Requirements) and CRR (Cash Reserve Ratio) of the commercial banks to stabilise the market. Yawer Sayeed, managing director of AIMS of Bangladesh said the investors are losing confidence and they are also confused over the recruitment of the SEC new chairman as the government is making delay over the issue. He said, the government remained in dilemma over the recruitment of the new chairman of the SEC and taking action against the market manipulators. "Though the market closed positive today, it was gained with the artificial support," he said. On the other hand, the vested quarters and market manipulators are still active in the market, he alleged. "The government should take initiative in proper way and proper time, otherwise investors' confidence won't be restored," he added. A total of 51.37 million shares changed hands on the day against 52.18 million in the previous session. The trade deals also decreased to 116,828 against Sunday's 121,469. Total market capitalization increased slightly and stood at Tk 2620.23 billion against Tk 2,608.75 billion in the previous session. Turnover continued to decline and stood at Tk 4.27 billion compared to Tk 4.62 billion in the previous session. Out of 253 issues traded, 172 advanced, 76 declined and five remained unchanged. Among the major sectors, banks, the market's bellwether gained 0.77 per cent, telecommunications 1.77 per cent and fuel and power 1.11 per cent while NBFIs lost 1.10 per cent. Among other sector cement, general insurance and ceramics gained 2.83 per cent, 1.16 per cent and 1.76 per cent respectively while pharmaceuticals, life insurance and textile lost 0.07 per cent, 0.39 per cent and 0.53 per cent. Beximco Ltd was the most traded share with turnover value of Tk 225.15 million.