Stocks continue to decline amid low turnover
Friday, 20 May 2011
FE Report
Dhaka stocks continued to be in the lower edge for the second consecutive day amid high volatility through out the trading hour Thursday with lower turnover. DGEN, the benchmark index of the Dhaka Stock Exchange (DSE) went down by 42.54 points or 0.73 per cent to close at 5,18.07. The broader All Shares Price Index (DSI) shed 31.60 points or 0.65 per cent and closed to 4,761.69. The DSE-20 index comprising blue-chip shares also lost 17.03 points or 0.45 per cent to 3,744.24. Ahmad Rashid Lali, managing director of the Rashid Investment Services said, big individual investors and institutional investors are still keeping distance from the market fearing further government move to investigate their bank accounts. Several days back, National Board of Revenue (NBR) sought bank account information of 15 top functionaries including former Chairman of SEC and current president of DSE. "Liquidity crunch continued to affect the stock market as investors preferring depositing money in banks instead of investing share market as banks are offering higher deposit rate", said Mr. Ahmad, also one of the DSE directors. Meanwhile, turnover in value terms continued to decline and stood at Tk 4.26 billion against Tk 4.55 billion in the previous session. The market opened with a negative note in the morning and lost five points within five minutes. However, it back on track and gained 15 points next 10 minutes and DGEN reached 5,770.21 points. After that it witnessed see-saw and finally closed 42 points lower. "Investors were more cautious before taking new position whereas sellers were reluctant to go for aggressive selling anticipating favorable steps by the government for the capital market in the upcoming budget", dealers said. A total of 40.46 million shares changed hands on the day against 47.14 million in the previous session. The trade deals also decreased to 112,335 against 119,763 in the previous session. Total market capitalization slightly declined and stood at Tk 2,656.32 against Tk 2,666.22 billion in the previous session. Out of 256 issues traded on the day, 100 advanced, 149 declined and seven remained unchanged. Most of the major sectors lost on the day with jute sector suffered the most and lost 1.88 per cent. Banking issues, which make up more than one-third of the market capitalization continued to decline and lost 0.98 per cent. Grameenphone, the most weighted shares in the DSE, lost 1.91 per cent after two session of gain. Among the notable losers -- NBFIs lost 0.92 per cent, pharmaceuticals 0.41 per cent and fuel and power 1.08 per cent. However, both the insurance sectors closed positive on the day. General gained 0.62 per cent and life gained 2.14 per cent. Bay Leasing topped the turnover list with shares worth Tk 150.40 million changing hands. Other turnover leaders were Beximco Limited, Titas Gas, BSRM Steels, Peoples Leasing, Delta Brac Housing Finance Corp. Ltd, Global Insurance, Bextex and United Airways. Barakatullah Electro Dynamics Ltd, which made debut on the DSE Thursday was the top gainer, the share price closed at Tk 72.8 per share, registering 21.3 per cent gain from the issue price of Tk 60 per share. It was followed by Global Insurance, Northern Insurance, CMC Kamal, National Housing and Finance, Eastern Lubricants, Standard Insurance, Asia Pacific Insurance, Monno Jute Staffler and Delta Brac Housing Finance Corp. Ltd. Bay Leasing lost 31.46 per cent following its price adjustment after record date of corporate declaration. The top loser list include Intech, Samata Leather, Federal Insurance, Reckitt Benckiser (Bd.) Ltd, Apex Spinning, Samorita Hospital, Zeal Bangla Sugar Mills, Sonargaon Textile and Shyampur Sugar Mills Ltd.
Dhaka stocks continued to be in the lower edge for the second consecutive day amid high volatility through out the trading hour Thursday with lower turnover. DGEN, the benchmark index of the Dhaka Stock Exchange (DSE) went down by 42.54 points or 0.73 per cent to close at 5,18.07. The broader All Shares Price Index (DSI) shed 31.60 points or 0.65 per cent and closed to 4,761.69. The DSE-20 index comprising blue-chip shares also lost 17.03 points or 0.45 per cent to 3,744.24. Ahmad Rashid Lali, managing director of the Rashid Investment Services said, big individual investors and institutional investors are still keeping distance from the market fearing further government move to investigate their bank accounts. Several days back, National Board of Revenue (NBR) sought bank account information of 15 top functionaries including former Chairman of SEC and current president of DSE. "Liquidity crunch continued to affect the stock market as investors preferring depositing money in banks instead of investing share market as banks are offering higher deposit rate", said Mr. Ahmad, also one of the DSE directors. Meanwhile, turnover in value terms continued to decline and stood at Tk 4.26 billion against Tk 4.55 billion in the previous session. The market opened with a negative note in the morning and lost five points within five minutes. However, it back on track and gained 15 points next 10 minutes and DGEN reached 5,770.21 points. After that it witnessed see-saw and finally closed 42 points lower. "Investors were more cautious before taking new position whereas sellers were reluctant to go for aggressive selling anticipating favorable steps by the government for the capital market in the upcoming budget", dealers said. A total of 40.46 million shares changed hands on the day against 47.14 million in the previous session. The trade deals also decreased to 112,335 against 119,763 in the previous session. Total market capitalization slightly declined and stood at Tk 2,656.32 against Tk 2,666.22 billion in the previous session. Out of 256 issues traded on the day, 100 advanced, 149 declined and seven remained unchanged. Most of the major sectors lost on the day with jute sector suffered the most and lost 1.88 per cent. Banking issues, which make up more than one-third of the market capitalization continued to decline and lost 0.98 per cent. Grameenphone, the most weighted shares in the DSE, lost 1.91 per cent after two session of gain. Among the notable losers -- NBFIs lost 0.92 per cent, pharmaceuticals 0.41 per cent and fuel and power 1.08 per cent. However, both the insurance sectors closed positive on the day. General gained 0.62 per cent and life gained 2.14 per cent. Bay Leasing topped the turnover list with shares worth Tk 150.40 million changing hands. Other turnover leaders were Beximco Limited, Titas Gas, BSRM Steels, Peoples Leasing, Delta Brac Housing Finance Corp. Ltd, Global Insurance, Bextex and United Airways. Barakatullah Electro Dynamics Ltd, which made debut on the DSE Thursday was the top gainer, the share price closed at Tk 72.8 per share, registering 21.3 per cent gain from the issue price of Tk 60 per share. It was followed by Global Insurance, Northern Insurance, CMC Kamal, National Housing and Finance, Eastern Lubricants, Standard Insurance, Asia Pacific Insurance, Monno Jute Staffler and Delta Brac Housing Finance Corp. Ltd. Bay Leasing lost 31.46 per cent following its price adjustment after record date of corporate declaration. The top loser list include Intech, Samata Leather, Federal Insurance, Reckitt Benckiser (Bd.) Ltd, Apex Spinning, Samorita Hospital, Zeal Bangla Sugar Mills, Sonargaon Textile and Shyampur Sugar Mills Ltd.