Stocks end lower, 6 cos face the music
Tuesday, 19 April 2011
FE Report
Dhaka stocks closed lower for the third straight session Monday amid see-saw of the index throughout the entire trading session as investors maintained their cautious stand in trading. In the first two hours expectation ram high among the investors on the news on approval of much expected Bangladesh Fund, but in the last two hours the cautious stance by traders pulled the index down slowly but steadily, dealers said. At the end of the day, the benchmark DSE General Index (DGEN), the yardstick of the DSE lost 28.76 points or 0.45per cent to 6,318.22. The broader All Shares Price Index (DSI) went down by 20.58 points or 0.39 per cent to close at 5,254.06. The DSE-20 index comprising blue-chip shares lost only 2.91 points or 0.07 per cent to 3,912.05. However, the market opened with positive mood in the morning, gaining more than 40 points within 15 minutes of the resumption of trade. But the bearish trend loomed as the session progressed amid ups and down till 1.00pm. After that it declined gradually and finally closed 28 points lower. Many investors remained cautious about the probe committee's report and whether action will be taken against the names mentioned in the report and they are observing the market situation, said a leading merchant banker. The transaction amount was less than Tk 10 billion for the fourth consecutive sessions and it is the indication of cautiousness from majority of the traders preferring to sit back on cash rather than taking fresh buying on any stocks, he said. The daily turnover continued to drop and stood at Tk 7.15 billion in value terms, down by 3.90 per cent, from Tk 7.44 billion in the previous session. Out of 258 issues traded on the day, 100 advanced, 154 declined and four remained unchanged. A total of 86.04 million shares changed hands on the day against 83.40 million in the previous session. The trade deals decreased to 145,397 against Sunday's 150,362. Meanwhile, Dhaka Stock Exchange (DSE) suspended trading of shares of six companies for unusual price hike of shares. The companies are-Anwar Galvanizing, ALLTEX Industries, Legacy Footwear, Modern Dying, Anlima Yarn and Dulamia Cotton. Share trading of Modern Dying remained suspended only for Monday while five other companies will remain suspended. Market expert Akhter Sannamat said, decision of suspending share trading of six companies for unusual price hike is appreciable and the authority should give exemplary punishment to the responsible persons. "If the authorities give them exemplary punishment, the general investors will be benefited and they will be more confident," said Mr Sannamat. Meanwhile, market capitalization slightly decreased to Tk 2,847.96 billion against Tk 2,857.97 billion in the previous session. Mutual fund sector was the biggest gainer on the day. The sector gained 1.93 per cent followed by life insurance which gained 0.92 per cent. Among the major sectors banks advanced 0.46 per cent, fuel and power gained 0.08 per cent while NBFIs lost 1.19 per cent, telecommunication 1.06 per cent and pharmaceuticals lost 0.20 per cent. Among the notable losers of the day, ceramics sector lost 2.70 per cent, jute 2.56 per cent, pharmaceuticals 0.20 per cent, cement 0.92 per cent, textile 0.75 per cent and tannery 0.44 per cent. Grameenphone (GP), the most weighted shares in DSE and the lone listed company in telecommunications sector lost Tk 0.60 per share and closed at Tk 167.70. Malek Spinning emerged the top turnover list with shares worth Tk 251.83 million changing hands. The other turnover leaders were Aftab Automobiles, Beximco Limited, AIMS First Mutual Fund, Titas Gas, DESCO, RN Spinning, BSRM Steels, Bextex Limited and Meghna Life Insurance. ICB Employees Provident MF 1: Scheme 1 was the day's top gainer posting 8.06 per cent rise. It was followed by BD Welding AIMS First Mutual Fund, MBL First Mutual Fund, Meghna Condense Milk, Sixth ICB, BIFC, ICB Islamic Mutual Fund, ICB AMCL First Mutual Fund and National Life Insurance. Reckitt Benckiser was the day's biggest loser following their corporate declaration of 50% cash dividend. The day's other top losers included Samata Leather Complex Ltd, Desh Garment, Safko Spinning, Sonargaon Textile, Aziz Pipes, Imam Button, Paramount Insurance Company Ltd, BD Autocars and Renwick Jajneswar & Co (Bd).
Dhaka stocks closed lower for the third straight session Monday amid see-saw of the index throughout the entire trading session as investors maintained their cautious stand in trading. In the first two hours expectation ram high among the investors on the news on approval of much expected Bangladesh Fund, but in the last two hours the cautious stance by traders pulled the index down slowly but steadily, dealers said. At the end of the day, the benchmark DSE General Index (DGEN), the yardstick of the DSE lost 28.76 points or 0.45per cent to 6,318.22. The broader All Shares Price Index (DSI) went down by 20.58 points or 0.39 per cent to close at 5,254.06. The DSE-20 index comprising blue-chip shares lost only 2.91 points or 0.07 per cent to 3,912.05. However, the market opened with positive mood in the morning, gaining more than 40 points within 15 minutes of the resumption of trade. But the bearish trend loomed as the session progressed amid ups and down till 1.00pm. After that it declined gradually and finally closed 28 points lower. Many investors remained cautious about the probe committee's report and whether action will be taken against the names mentioned in the report and they are observing the market situation, said a leading merchant banker. The transaction amount was less than Tk 10 billion for the fourth consecutive sessions and it is the indication of cautiousness from majority of the traders preferring to sit back on cash rather than taking fresh buying on any stocks, he said. The daily turnover continued to drop and stood at Tk 7.15 billion in value terms, down by 3.90 per cent, from Tk 7.44 billion in the previous session. Out of 258 issues traded on the day, 100 advanced, 154 declined and four remained unchanged. A total of 86.04 million shares changed hands on the day against 83.40 million in the previous session. The trade deals decreased to 145,397 against Sunday's 150,362. Meanwhile, Dhaka Stock Exchange (DSE) suspended trading of shares of six companies for unusual price hike of shares. The companies are-Anwar Galvanizing, ALLTEX Industries, Legacy Footwear, Modern Dying, Anlima Yarn and Dulamia Cotton. Share trading of Modern Dying remained suspended only for Monday while five other companies will remain suspended. Market expert Akhter Sannamat said, decision of suspending share trading of six companies for unusual price hike is appreciable and the authority should give exemplary punishment to the responsible persons. "If the authorities give them exemplary punishment, the general investors will be benefited and they will be more confident," said Mr Sannamat. Meanwhile, market capitalization slightly decreased to Tk 2,847.96 billion against Tk 2,857.97 billion in the previous session. Mutual fund sector was the biggest gainer on the day. The sector gained 1.93 per cent followed by life insurance which gained 0.92 per cent. Among the major sectors banks advanced 0.46 per cent, fuel and power gained 0.08 per cent while NBFIs lost 1.19 per cent, telecommunication 1.06 per cent and pharmaceuticals lost 0.20 per cent. Among the notable losers of the day, ceramics sector lost 2.70 per cent, jute 2.56 per cent, pharmaceuticals 0.20 per cent, cement 0.92 per cent, textile 0.75 per cent and tannery 0.44 per cent. Grameenphone (GP), the most weighted shares in DSE and the lone listed company in telecommunications sector lost Tk 0.60 per share and closed at Tk 167.70. Malek Spinning emerged the top turnover list with shares worth Tk 251.83 million changing hands. The other turnover leaders were Aftab Automobiles, Beximco Limited, AIMS First Mutual Fund, Titas Gas, DESCO, RN Spinning, BSRM Steels, Bextex Limited and Meghna Life Insurance. ICB Employees Provident MF 1: Scheme 1 was the day's top gainer posting 8.06 per cent rise. It was followed by BD Welding AIMS First Mutual Fund, MBL First Mutual Fund, Meghna Condense Milk, Sixth ICB, BIFC, ICB Islamic Mutual Fund, ICB AMCL First Mutual Fund and National Life Insurance. Reckitt Benckiser was the day's biggest loser following their corporate declaration of 50% cash dividend. The day's other top losers included Samata Leather Complex Ltd, Desh Garment, Safko Spinning, Sonargaon Textile, Aziz Pipes, Imam Button, Paramount Insurance Company Ltd, BD Autocars and Renwick Jajneswar & Co (Bd).