Stocks down for consecutive second week, turnover declines 35 pc
Saturday, 23 April 2011
FE Report
Bearish trend on the Dhaka Stock Exchange (DSE) continued for the consecutive second week with substantially low turnover and all three indices going down moderately as big investors remained inactive over the outcome of the stock scam report and tight money market. Many small and institutional investors are facing credit crunch as the money market remained tight which contributed to lower turnover value in the week, said a stockbroker. "The investors took conservative view and followed the market movement as most of outcomes of probe report are still pending. They are also fearing uncertainty over the government's action against the market manipulators," he said. Some media report regarding restriction for the government officials' investment in the stocks in the week also made the investors wary," said a leading merchant banker. A total of five trading sessions in the week, only last trading session gained marginally while first four sessions lost. During the week, the benchmark index DGEN shed 193.74 points or 3.03 per cent to 6,192.62. The broader DSE All Shares Price Index (DSI) ended at 5,149.11 went down by 154.01 points or 2.90 per cent. The DSE-20 index including blue chips also lost 78.52 points or 2.00 per cent to 3,852.52. Meanwhile, the Securities and Exchange Commission (SEC) on Monday gave green signal to the much talked about Tk 50 billion open-end mutual fund - 'Bangladesh Fund,' as per the existing rules of mutual fund. The initial size of the fund will be Tk 15 billion and the remaining fund, amounting to Tk 35 billion will have to be collected from the capital market. The face value of the fund's unit has been fixed at Tk 100. ICB Asset Management Company Limited has been appointed as fund manager of Bangladesh Fund. Of the total amount of Tk 15 billion, ICB sponsored Tk 5 billion, Sonali Bank Tk 2.5 billion, Janata Bank and Agrani Bank Tk 2.0 billion each, Rupali Bank, Bangladesh Development Bank and Shadharan Bima Corporation Tk 1.0 billion each and Jiban Bima Corporation sponsored Tk 0.5 billion. However, the news of the approval of largest ever mutual fund which have been formed mainly to bring back stability in stock market failed to spur the investors' sentiment, dealers said. Out of 264 issues traded, only 44 advanced and 217 declined while three unchanged during the week. Despite having one more working day compared to the previous week, total turnover of the week was 19.8 per cent lower at Tk 33.4 billion (US$ 483.9 million). The average daily turnover of the week was 35.8 per cent lower at Tk 6.7 billion (USD 96.8 million). In the opening day of the week, the market capitalization was Tk 2,869.89 billion and at the closing session it stood at Tk 2,800.25 billion, 2.43 per cent lower. Among the major sectors, nearly all sectors lost except life insurances. Life insurance gained marginally by 0.46 per cent in the week. Among the major sectors---banking sector lost 1.55 per cent; NBFIs lost 5.02 per cent, general insurance 5.67 per cent, telecommunications 4.28 per cent, pharmaceuticals 1.69 per cent, fuel and power 2.06 per cent, cement 5.52 per cent and tannery 2.41 per cent during the week. ACI Formulations Limited was the week's top gainer posting 32.84 per cent rise following its corporate declaration of 30% bonus share. It was followed by National Tea Limited, ICB Employees Provident Mutual Fund One, Janata Insurance, Bd. Welding Electrodes, National Life Insurance, Meghna Condensed Milk, ACI Limited, AIMS First Mutual Fund and ICB AMCL First Mutual Fund. Beximco Limited topped the week's turnover list with shares worth Tk 1.03 billion changing hands. The other turnover leaders were Malek Spinning Mills Limited, Aftab Automobiles, Bextex Limited, BSRM Steels Limited, Titas Gas, DESCO, United Airways (BD) Ltd, AIMS First Mutual Fund and R. N. Spinning Mills Limited. The week's prominent losers included City General Insurance, City Bank, Islami Bank, Reckitt Benckiser(Bd.)Ltd, Fidelity Assets & Securities, United Insurance, Premier Leasing, Sonargaon Textiles, Savar Refractories and National Tubes. DGEN continued with the downward movement from the last working day of the previous week and started this week on a negative tone losing 39.37 points or 0.62 per cent from the opening index of 6,386.36 points. Turnover also dropped 13.0 per cent Sunday. The market closed Sunday negative mainly due to concern over National Board of Revenue (NBR) move to scrutinise more than 100 leading share investors who availed tax exemption opportunity that was offered in 2009 with a condition to hold the investment for two consecutive years, dealers said. On Monday, DGEN lost another 28.76 points or 0.45 per cent while turnover decreased slightly to Tk 7.2 billion. DGEN receded another 68.23 points or 1.08 per cent on Tuesday. However, turnover on the day increased to Tk 7.9 billion. The index dropped another 117.43 points or 1.88 per cent on Wednesday to close the day at 6,132.56 points, the lowest since March 27, 2011. Turnover for the day decreased 22.8 per cent to Tk 6.1 billion. The week concluded on Thursday with DGEN recovering 60.06 points 0.98 per cent while turnover for the day decreased to Tk 4.8 billion or 22.0 per cent, the lowest since March 1, 2011. During the week, a total of ten companies announced corporate declaration for the year ended December 31, 2010. Among them ACI Limited recommended 120 per cent cash dividend, ACI Formula 30 per cent cash, BIFC 25 per cent bonus, Dhaka Insurance 100 per cent bonus, Green Delta 40 per cent cash, Heidelberg Cement 43 per cent cash, Mercantile Insurance 12 per cent bonus, Paramount Insurance 10 per cent bonus, Reckitt Benckiser(Bd.)Ltd. 50 per cent cash and Square Textile recommended 16 per cent cash for the year ended December 31, 2010.
Bearish trend on the Dhaka Stock Exchange (DSE) continued for the consecutive second week with substantially low turnover and all three indices going down moderately as big investors remained inactive over the outcome of the stock scam report and tight money market. Many small and institutional investors are facing credit crunch as the money market remained tight which contributed to lower turnover value in the week, said a stockbroker. "The investors took conservative view and followed the market movement as most of outcomes of probe report are still pending. They are also fearing uncertainty over the government's action against the market manipulators," he said. Some media report regarding restriction for the government officials' investment in the stocks in the week also made the investors wary," said a leading merchant banker. A total of five trading sessions in the week, only last trading session gained marginally while first four sessions lost. During the week, the benchmark index DGEN shed 193.74 points or 3.03 per cent to 6,192.62. The broader DSE All Shares Price Index (DSI) ended at 5,149.11 went down by 154.01 points or 2.90 per cent. The DSE-20 index including blue chips also lost 78.52 points or 2.00 per cent to 3,852.52. Meanwhile, the Securities and Exchange Commission (SEC) on Monday gave green signal to the much talked about Tk 50 billion open-end mutual fund - 'Bangladesh Fund,' as per the existing rules of mutual fund. The initial size of the fund will be Tk 15 billion and the remaining fund, amounting to Tk 35 billion will have to be collected from the capital market. The face value of the fund's unit has been fixed at Tk 100. ICB Asset Management Company Limited has been appointed as fund manager of Bangladesh Fund. Of the total amount of Tk 15 billion, ICB sponsored Tk 5 billion, Sonali Bank Tk 2.5 billion, Janata Bank and Agrani Bank Tk 2.0 billion each, Rupali Bank, Bangladesh Development Bank and Shadharan Bima Corporation Tk 1.0 billion each and Jiban Bima Corporation sponsored Tk 0.5 billion. However, the news of the approval of largest ever mutual fund which have been formed mainly to bring back stability in stock market failed to spur the investors' sentiment, dealers said. Out of 264 issues traded, only 44 advanced and 217 declined while three unchanged during the week. Despite having one more working day compared to the previous week, total turnover of the week was 19.8 per cent lower at Tk 33.4 billion (US$ 483.9 million). The average daily turnover of the week was 35.8 per cent lower at Tk 6.7 billion (USD 96.8 million). In the opening day of the week, the market capitalization was Tk 2,869.89 billion and at the closing session it stood at Tk 2,800.25 billion, 2.43 per cent lower. Among the major sectors, nearly all sectors lost except life insurances. Life insurance gained marginally by 0.46 per cent in the week. Among the major sectors---banking sector lost 1.55 per cent; NBFIs lost 5.02 per cent, general insurance 5.67 per cent, telecommunications 4.28 per cent, pharmaceuticals 1.69 per cent, fuel and power 2.06 per cent, cement 5.52 per cent and tannery 2.41 per cent during the week. ACI Formulations Limited was the week's top gainer posting 32.84 per cent rise following its corporate declaration of 30% bonus share. It was followed by National Tea Limited, ICB Employees Provident Mutual Fund One, Janata Insurance, Bd. Welding Electrodes, National Life Insurance, Meghna Condensed Milk, ACI Limited, AIMS First Mutual Fund and ICB AMCL First Mutual Fund. Beximco Limited topped the week's turnover list with shares worth Tk 1.03 billion changing hands. The other turnover leaders were Malek Spinning Mills Limited, Aftab Automobiles, Bextex Limited, BSRM Steels Limited, Titas Gas, DESCO, United Airways (BD) Ltd, AIMS First Mutual Fund and R. N. Spinning Mills Limited. The week's prominent losers included City General Insurance, City Bank, Islami Bank, Reckitt Benckiser(Bd.)Ltd, Fidelity Assets & Securities, United Insurance, Premier Leasing, Sonargaon Textiles, Savar Refractories and National Tubes. DGEN continued with the downward movement from the last working day of the previous week and started this week on a negative tone losing 39.37 points or 0.62 per cent from the opening index of 6,386.36 points. Turnover also dropped 13.0 per cent Sunday. The market closed Sunday negative mainly due to concern over National Board of Revenue (NBR) move to scrutinise more than 100 leading share investors who availed tax exemption opportunity that was offered in 2009 with a condition to hold the investment for two consecutive years, dealers said. On Monday, DGEN lost another 28.76 points or 0.45 per cent while turnover decreased slightly to Tk 7.2 billion. DGEN receded another 68.23 points or 1.08 per cent on Tuesday. However, turnover on the day increased to Tk 7.9 billion. The index dropped another 117.43 points or 1.88 per cent on Wednesday to close the day at 6,132.56 points, the lowest since March 27, 2011. Turnover for the day decreased 22.8 per cent to Tk 6.1 billion. The week concluded on Thursday with DGEN recovering 60.06 points 0.98 per cent while turnover for the day decreased to Tk 4.8 billion or 22.0 per cent, the lowest since March 1, 2011. During the week, a total of ten companies announced corporate declaration for the year ended December 31, 2010. Among them ACI Limited recommended 120 per cent cash dividend, ACI Formula 30 per cent cash, BIFC 25 per cent bonus, Dhaka Insurance 100 per cent bonus, Green Delta 40 per cent cash, Heidelberg Cement 43 per cent cash, Mercantile Insurance 12 per cent bonus, Paramount Insurance 10 per cent bonus, Reckitt Benckiser(Bd.)Ltd. 50 per cent cash and Square Textile recommended 16 per cent cash for the year ended December 31, 2010.