Stocks suffer a big jolt
Tuesday, 27 November 2012
FE Report
The week started in Dhaka Stock Exchange (DSE) on Monday with huge downfall as market liquidity faced a critical phase.
After market's going back to bearish sidewalk, it faced on the day a huge blow as it lost 92 straight points from the very beginning.
Moreover, the skeleton of the market became more visible as unhealthy turnover became more critical, according to market analysts.
The day's fall was like a straight line which was proportional with time. That is the more time went, the more sell pressure appeared, according to Zenith, a market research organisation.
DSE prime index, DGEN ended the day at 4,050 points losing 92 points as the market fell heavily until the last moment of the session. The day's turnover was worth of BDT 2.06 billion -- Taka 640 million lower than that of the previous trading day last week.
During the day's trading session, 265 companies and mutual funds were traded and among them, 12 issues increased, 241 decreased and seven issues remained unchanged.
The turnover on Monday was poor for every sector. Fuel and power sector got the top turnover with only BDT 403.9 million where it increased only 20.3 per cent lower than on the previous day's trading last week.
Textile sector witnessed most decline in turnover which was 48 per cent lower than that of the previous trading day. All the sectors suffered on the day and most of them suffered around 3.0 per cent.
With significant turnover drop on the day, textiles lost 3.40 per cent. Modern Dye suffered most as it lost 8.24 per cent price. Other scrips from the sector lost on average 5.0 per cent. Fuel and power sector lost around 2.84 per cent as heavyweight Titas Gas lost 3.02 per cent along with others. Oil companies also fell heavily as Jamuna Oil lost 6.03 per cent price. Heavyweight GP lost 1.24 per cent price Monday which led the telecom sector downward.
The bubble burst of 2010-11 had a strongly negative impact on the investor's psychology.
In a critical situation like this, investors are not being able to depend on the institutions even, according to Zenith which noted that lack of fresh fund injection and ever-falling turnover "proves that."
Unlike the previous trading day last week, market was not confused at all on Monday. Bears were pretty much active from the very beginning, market started to fall with force and it ended up with a downfall of huge points. The 4,140 Index level worked as an ultimate resistance zone which could not be broken as volume was dry. There was no sign of taking support at any certain point throughout the session, the analysis by Zenith said.
At the end, the index tried to take support at 4,050 index level, but it was about to break when the trading session ended. At the end, volume got accelerated a bit but that's not noticeable. High downfall with small volume was a matter of concern, the analysis noted.
According to analysts, it would be very hard, first of all, for the market to come back rapidly. At least it does not seem likely in the near future.
Moreover, turnover crisis raised the question that where the index level might end up going down as there were hardly any support zone left at this level, they observed.
The week started in Dhaka Stock Exchange (DSE) on Monday with huge downfall as market liquidity faced a critical phase.
After market's going back to bearish sidewalk, it faced on the day a huge blow as it lost 92 straight points from the very beginning.
Moreover, the skeleton of the market became more visible as unhealthy turnover became more critical, according to market analysts.
The day's fall was like a straight line which was proportional with time. That is the more time went, the more sell pressure appeared, according to Zenith, a market research organisation.
DSE prime index, DGEN ended the day at 4,050 points losing 92 points as the market fell heavily until the last moment of the session. The day's turnover was worth of BDT 2.06 billion -- Taka 640 million lower than that of the previous trading day last week.
During the day's trading session, 265 companies and mutual funds were traded and among them, 12 issues increased, 241 decreased and seven issues remained unchanged.
The turnover on Monday was poor for every sector. Fuel and power sector got the top turnover with only BDT 403.9 million where it increased only 20.3 per cent lower than on the previous day's trading last week.
Textile sector witnessed most decline in turnover which was 48 per cent lower than that of the previous trading day. All the sectors suffered on the day and most of them suffered around 3.0 per cent.
With significant turnover drop on the day, textiles lost 3.40 per cent. Modern Dye suffered most as it lost 8.24 per cent price. Other scrips from the sector lost on average 5.0 per cent. Fuel and power sector lost around 2.84 per cent as heavyweight Titas Gas lost 3.02 per cent along with others. Oil companies also fell heavily as Jamuna Oil lost 6.03 per cent price. Heavyweight GP lost 1.24 per cent price Monday which led the telecom sector downward.
The bubble burst of 2010-11 had a strongly negative impact on the investor's psychology.
In a critical situation like this, investors are not being able to depend on the institutions even, according to Zenith which noted that lack of fresh fund injection and ever-falling turnover "proves that."
Unlike the previous trading day last week, market was not confused at all on Monday. Bears were pretty much active from the very beginning, market started to fall with force and it ended up with a downfall of huge points. The 4,140 Index level worked as an ultimate resistance zone which could not be broken as volume was dry. There was no sign of taking support at any certain point throughout the session, the analysis by Zenith said.
At the end, the index tried to take support at 4,050 index level, but it was about to break when the trading session ended. At the end, volume got accelerated a bit but that's not noticeable. High downfall with small volume was a matter of concern, the analysis noted.
According to analysts, it would be very hard, first of all, for the market to come back rapidly. At least it does not seem likely in the near future.
Moreover, turnover crisis raised the question that where the index level might end up going down as there were hardly any support zone left at this level, they observed.