Trend remains bullish despite SEC directive
Saturday, 28 July 2007
FE Report
The stock prices on the Dhaka Stock Exchange (DSE) remained bullish in the week ended Thursday despite a directive from the Securities and Exchange Commission (SEC) to place five top companies in the spot market instead of 'public transactions'.
As per SEC directive, trading of the shares of AB Bank, Power Grid, Summit Power, DESCO and BRAC Bank began in the spot market Monday last and SEC also suspended the financial adjustment facilities for B, G and N category shares aiming to rein in the surge of the share prices.
But, the SEC action did not have the cooling effect on the prices though Monday's trading witnessed a bearish mood. The SEC directive was effective from Monday.
However, from the next day, the prices of most of the companies began to bounce back and as a result, all the market barometers of DSE continued to surge amid a hefty turnover.
The benchmark DSE General Index or DGEN and DSE 20, the index of blue-chip companies crossed 2400-mark and 2200-mark respectively in the week gaining by 62.12 points and 131.19 points against the previous week
The DSE 20 crossed 2100 and 2200-marks within a week.
The all share price index or DSI gained 30.49 points to close at 1944.30 points.
The DGEN and DSE 20 closed at 2401.49 and 2219.79 respectively.
The daily average turnover rose by 4.77 per cent at Tk 2.23 billion and the total market capitalisation also stood at Tk 542.95 billion, 4.36 per cent up against the previous week.
Market operators said the market continued to witness a bullish mood with a fresh buying spree with the enhanced participation of institutional, retail and portfolio investors.
"Institutions are very active now-a-days and they are buying blue-chip issues under banks, power, pharmaceutical and mutual funds," a DSE source said.
Square Pharma and BRAC Bank were the first and second turnover leaders with Tk 1.06 billion and Tk 720.06 million traded accounting for 9.50 per cent and 6.43 per cent respectively of the total trading.
Southeast Bank, Exim Bank, Power Grid, Summit Power, NCC Bank, NBL, Pubali Bank and City Bank were the other top turnover leaders.
Apart from Square Pharma, another leading pharmaceutical company-Renata Ltd- attracted the investors' choice when the company obtained accreditation from London-based Medicines and Healthcare Products Regulatory Agency (MHRA) to export the company products to the UK market.
The MHRA has approved the Renata Ltd's potent product facility and as a result, the company will begin contract manufacturing medicine products for UK-based companies.
Renata's price surged by 28.04 per cent in the week.
Meanwhile, the share trading of Union Capital Ltd began in the week.
Union Capital is the 13th non-banking financial institution (NBFI) listed in the DSE.
The already listed NBFIs are IDLC, United Leasing, Uttara Finance, MIDAS Financing, First Lease International, People's Leasing, Prime Finance and Investment, Premier Leasing, Islamic Finance and Investment, LankaBangla Finance, Bangladesh Industrial Finance and IPDC.
The subscription of the public offer of Union Capital ended May 10 last.
The stock prices on the Dhaka Stock Exchange (DSE) remained bullish in the week ended Thursday despite a directive from the Securities and Exchange Commission (SEC) to place five top companies in the spot market instead of 'public transactions'.
As per SEC directive, trading of the shares of AB Bank, Power Grid, Summit Power, DESCO and BRAC Bank began in the spot market Monday last and SEC also suspended the financial adjustment facilities for B, G and N category shares aiming to rein in the surge of the share prices.
But, the SEC action did not have the cooling effect on the prices though Monday's trading witnessed a bearish mood. The SEC directive was effective from Monday.
However, from the next day, the prices of most of the companies began to bounce back and as a result, all the market barometers of DSE continued to surge amid a hefty turnover.
The benchmark DSE General Index or DGEN and DSE 20, the index of blue-chip companies crossed 2400-mark and 2200-mark respectively in the week gaining by 62.12 points and 131.19 points against the previous week
The DSE 20 crossed 2100 and 2200-marks within a week.
The all share price index or DSI gained 30.49 points to close at 1944.30 points.
The DGEN and DSE 20 closed at 2401.49 and 2219.79 respectively.
The daily average turnover rose by 4.77 per cent at Tk 2.23 billion and the total market capitalisation also stood at Tk 542.95 billion, 4.36 per cent up against the previous week.
Market operators said the market continued to witness a bullish mood with a fresh buying spree with the enhanced participation of institutional, retail and portfolio investors.
"Institutions are very active now-a-days and they are buying blue-chip issues under banks, power, pharmaceutical and mutual funds," a DSE source said.
Square Pharma and BRAC Bank were the first and second turnover leaders with Tk 1.06 billion and Tk 720.06 million traded accounting for 9.50 per cent and 6.43 per cent respectively of the total trading.
Southeast Bank, Exim Bank, Power Grid, Summit Power, NCC Bank, NBL, Pubali Bank and City Bank were the other top turnover leaders.
Apart from Square Pharma, another leading pharmaceutical company-Renata Ltd- attracted the investors' choice when the company obtained accreditation from London-based Medicines and Healthcare Products Regulatory Agency (MHRA) to export the company products to the UK market.
The MHRA has approved the Renata Ltd's potent product facility and as a result, the company will begin contract manufacturing medicine products for UK-based companies.
Renata's price surged by 28.04 per cent in the week.
Meanwhile, the share trading of Union Capital Ltd began in the week.
Union Capital is the 13th non-banking financial institution (NBFI) listed in the DSE.
The already listed NBFIs are IDLC, United Leasing, Uttara Finance, MIDAS Financing, First Lease International, People's Leasing, Prime Finance and Investment, Premier Leasing, Islamic Finance and Investment, LankaBangla Finance, Bangladesh Industrial Finance and IPDC.
The subscription of the public offer of Union Capital ended May 10 last.