Stocks continue to see erosion of prices, values of turnover
Saturday, 30 April 2011
FE Report
Bearish trend at the Dhaka Stock Exchange (DSE) continued for the third running week amid substantially low turnover in the trading session. The week's trading was also marked by violent streets protest by the small investors. The angry investors took the streets for the first time in two months on the second trading day (Monday) in the week protesting share price fall and demanded publishing the share scam report in earliest possible time. Market sentiment was hit in recent days over the speculation of the outcome of share scam report which was submitted recently to the finance minister, dealers said. The big investors remained inactive while small traders maintained cautious stance over the outcome of the stock scam report amid tight money market, they said. Recently published media report said that the Ministry of Finance (MoF) is going to take 13 point mid term action in response to the published share scam report. They are also planning for major overhaul in the top management of market regulator Securities and Exchange Commission (SEC). Meanwhile, among the total of five trading sessions during the week, four sessions lost while only one session gained. During the week, the benchmark index DGEN shed 141.77 points or 2.29 per cent to 6,050.85. The broader DSE All Shares Price Index (DSI) ended at 5,032.95 went down by 116.16 points or 2.26 per cent. The DSE-20 index including blue chips also lost 26.31 points or 0.68 per cent to settle at 3,826.22 points. The total turnover value stood at Tk 28.6 billion (US$ 403.4 million), 14.2 per cent lower than the previous week's value. Average daily turnover value stood at Tk 5.7 billion ($ 80.7 million) compared to Tk 6.7 billion (US$ 94.1 million) in the previous week. All the sectors lost in the week with ceramics and general insurance emerged as the biggest losers-- losing 6.09 per cent and 6.01 per cent respectively. Among the week's other notable losers---banking sector lost 0.35 per cent, NBFIs 3.49 per cent, telecommunications 3.62 per cent, fuel and power 2.50 per cent, mutual fund 2.81 per cent, life insurance 3.18 per cent, pharmaceuticals 2.37 per cent, cement 1.62 per cent, textile 5.08 per cent, tannery 1.65 per cent and jute 1.71 per cent. Small and institutional investors are facing shortage of fund as the money market remained tight which was a main reason for low turnover, said a merchant banker. "Private commercial banks are offering higher rate for deposit mobilization which indicates overall liquidity crunch in the money market", he said. Meanwhile, the state owned asset management company, ICB completed registration process of the much expected open ended mutual fund---the Bangladesh Fund of Tk 50 billion on Thursday. The last formality of the fund is likely to be completed Monday at the SEC as tomorrow (Sunday) will be a being the public holiday. After completion of Monday's formalities, the fund will start to invest in share market, sources said. During the week, out of 259 issues traded, only 37 advanced and 221 declined while one remained unchanged. The market capitalization was Tk 2,800.24 billion in the opening day of the week and at the end of the week, it stood at Tk 2,772.19 billion, which was 1.0 per cent down. Beximco Limited continued to top the turnover list with shares worth Tk 2.20 billion changing hands during the week. The other turnover leaders were Bextex Limited, United Airways, Titas Gas, Aftab Automobiles, DESCO, Malek Spinning, BSRM Steels, Shinepukur Ceramics Limited and National Bank. Reckitt Benckiser (Bd.) Ltd was the week's top gainer posting 19.46 per cent rise in the week. It was followed by Chittagong Vegetable, Phoenix Finance 1st Mutual Fund, Trust Bank, City Bank, Fourth ICB, National Tea, Eastern Bank, Monno Ceramic and Dhaka Bank. Phoenix Finance was the top loser of the week with 29.50 per cent decline. The other top losers included BIFC, Shahjalal Islami Bank, Mercantile Insurance, Northern General Insurance Company Ltd, IPDC, Active Fine Chemicals Limited, National Housing Finance and Investments Limited, Saiham Textile and Confidence Cement. Meanwhile, On Sunday, the market started the week with DGEN losing 116.30 points or 1.88 per cent in the first trading sessions. However, the daily turnover increased 32 per cent and stood at Tk 6.31 billion. On Monday, the market plunged another 212.30 points or 3.49 per cent to seven weeks low with the benchmark index falling below 6,000, sparking violent protests by investors in front of the Dhaka Stock Exchange building. The protesters hit the streets for the first time in two months on Monday. Riot police swung into actions, using batons to break up protesters who barricaded the main roads leading to the Motijheel Commercial Area, smashed motorbikes, torched tyres and office furniture to vent their anger. On Tuesday, the bourse shed marginally by 57.67 points or 0.98 per cent and closed at 5,806.31. Turnover also declined substantially to Tk 4.47 billion or down by 27 per cent from Monday's Tk 6.13 billion. It was the lowest turnover nearly two months since March 1. The present liquidity crisis in the banking system also affected the capital market in turnover value, dealers said. However, the market experienced a surprising rebound on the fourth trading session of the week on Wednesday with DGEN gaining 276.97 points or 4.77 per cent. But the recovery did not sustain as DGEN dropped 32.44 points or 0.53 per cent on the next day which was also the last trading session of the week. During the week, 14 companies announced their corporate declaration. Among them, Karnaphuli Insurance recommended 20 per cent bonus, Islami Insurance 20 per cent bonus, Confidence Cement 25 per cent cash and 15 per cent bonus, IFIC Bank 27 per cent bonus, Bangladesh General Insurance Company 12 per cent bonus, Nitol Insurance 12.5 per cent bonus, National Housing Finance and Investment Ltd 10 per cent cash and 10 per cent bonus, Pioneer Insurance 25 per cent bonus, Industrial Promotion & Development Company (IPDC) 10 per cent bonus, Marico Bangladesh Ltd 20 per cent cash, Takaful Islami Insurance Ltd. 15 per cent bonus, Uttara Finance 40 per cent bonus, United Commercial Bank Limited 25 per cent bonus and City General Insurance Co. Ltd recommended 12 per cent bonus.
Bearish trend at the Dhaka Stock Exchange (DSE) continued for the third running week amid substantially low turnover in the trading session. The week's trading was also marked by violent streets protest by the small investors. The angry investors took the streets for the first time in two months on the second trading day (Monday) in the week protesting share price fall and demanded publishing the share scam report in earliest possible time. Market sentiment was hit in recent days over the speculation of the outcome of share scam report which was submitted recently to the finance minister, dealers said. The big investors remained inactive while small traders maintained cautious stance over the outcome of the stock scam report amid tight money market, they said. Recently published media report said that the Ministry of Finance (MoF) is going to take 13 point mid term action in response to the published share scam report. They are also planning for major overhaul in the top management of market regulator Securities and Exchange Commission (SEC). Meanwhile, among the total of five trading sessions during the week, four sessions lost while only one session gained. During the week, the benchmark index DGEN shed 141.77 points or 2.29 per cent to 6,050.85. The broader DSE All Shares Price Index (DSI) ended at 5,032.95 went down by 116.16 points or 2.26 per cent. The DSE-20 index including blue chips also lost 26.31 points or 0.68 per cent to settle at 3,826.22 points. The total turnover value stood at Tk 28.6 billion (US$ 403.4 million), 14.2 per cent lower than the previous week's value. Average daily turnover value stood at Tk 5.7 billion ($ 80.7 million) compared to Tk 6.7 billion (US$ 94.1 million) in the previous week. All the sectors lost in the week with ceramics and general insurance emerged as the biggest losers-- losing 6.09 per cent and 6.01 per cent respectively. Among the week's other notable losers---banking sector lost 0.35 per cent, NBFIs 3.49 per cent, telecommunications 3.62 per cent, fuel and power 2.50 per cent, mutual fund 2.81 per cent, life insurance 3.18 per cent, pharmaceuticals 2.37 per cent, cement 1.62 per cent, textile 5.08 per cent, tannery 1.65 per cent and jute 1.71 per cent. Small and institutional investors are facing shortage of fund as the money market remained tight which was a main reason for low turnover, said a merchant banker. "Private commercial banks are offering higher rate for deposit mobilization which indicates overall liquidity crunch in the money market", he said. Meanwhile, the state owned asset management company, ICB completed registration process of the much expected open ended mutual fund---the Bangladesh Fund of Tk 50 billion on Thursday. The last formality of the fund is likely to be completed Monday at the SEC as tomorrow (Sunday) will be a being the public holiday. After completion of Monday's formalities, the fund will start to invest in share market, sources said. During the week, out of 259 issues traded, only 37 advanced and 221 declined while one remained unchanged. The market capitalization was Tk 2,800.24 billion in the opening day of the week and at the end of the week, it stood at Tk 2,772.19 billion, which was 1.0 per cent down. Beximco Limited continued to top the turnover list with shares worth Tk 2.20 billion changing hands during the week. The other turnover leaders were Bextex Limited, United Airways, Titas Gas, Aftab Automobiles, DESCO, Malek Spinning, BSRM Steels, Shinepukur Ceramics Limited and National Bank. Reckitt Benckiser (Bd.) Ltd was the week's top gainer posting 19.46 per cent rise in the week. It was followed by Chittagong Vegetable, Phoenix Finance 1st Mutual Fund, Trust Bank, City Bank, Fourth ICB, National Tea, Eastern Bank, Monno Ceramic and Dhaka Bank. Phoenix Finance was the top loser of the week with 29.50 per cent decline. The other top losers included BIFC, Shahjalal Islami Bank, Mercantile Insurance, Northern General Insurance Company Ltd, IPDC, Active Fine Chemicals Limited, National Housing Finance and Investments Limited, Saiham Textile and Confidence Cement. Meanwhile, On Sunday, the market started the week with DGEN losing 116.30 points or 1.88 per cent in the first trading sessions. However, the daily turnover increased 32 per cent and stood at Tk 6.31 billion. On Monday, the market plunged another 212.30 points or 3.49 per cent to seven weeks low with the benchmark index falling below 6,000, sparking violent protests by investors in front of the Dhaka Stock Exchange building. The protesters hit the streets for the first time in two months on Monday. Riot police swung into actions, using batons to break up protesters who barricaded the main roads leading to the Motijheel Commercial Area, smashed motorbikes, torched tyres and office furniture to vent their anger. On Tuesday, the bourse shed marginally by 57.67 points or 0.98 per cent and closed at 5,806.31. Turnover also declined substantially to Tk 4.47 billion or down by 27 per cent from Monday's Tk 6.13 billion. It was the lowest turnover nearly two months since March 1. The present liquidity crisis in the banking system also affected the capital market in turnover value, dealers said. However, the market experienced a surprising rebound on the fourth trading session of the week on Wednesday with DGEN gaining 276.97 points or 4.77 per cent. But the recovery did not sustain as DGEN dropped 32.44 points or 0.53 per cent on the next day which was also the last trading session of the week. During the week, 14 companies announced their corporate declaration. Among them, Karnaphuli Insurance recommended 20 per cent bonus, Islami Insurance 20 per cent bonus, Confidence Cement 25 per cent cash and 15 per cent bonus, IFIC Bank 27 per cent bonus, Bangladesh General Insurance Company 12 per cent bonus, Nitol Insurance 12.5 per cent bonus, National Housing Finance and Investment Ltd 10 per cent cash and 10 per cent bonus, Pioneer Insurance 25 per cent bonus, Industrial Promotion & Development Company (IPDC) 10 per cent bonus, Marico Bangladesh Ltd 20 per cent cash, Takaful Islami Insurance Ltd. 15 per cent bonus, Uttara Finance 40 per cent bonus, United Commercial Bank Limited 25 per cent bonus and City General Insurance Co. Ltd recommended 12 per cent bonus.