WB, IMF concerns hit stocks to dip again

FE Report Dhaka stocks experienced yet another sharp decline Wednesday, amid street protest as investors sold shares in panic despite repeated assurances of different stakeholders. Market insiders said the market could not come out from the bearish trend despite repeated assurances from the banks, market regulator and different stakeholders as most of the assurances are yet to be implemented. A market analyst said the market dipped following a World Bank (WB) and International Monetary Fund (IMF) concern that the banks will face difficulty if they go for further investment in stock market. The WB also expressed their concern about formation of special fund to salvage the plunging market, saying it will raise banks liabilities while IMF questioned about the formation of the stock market stabilization fund. The market opened with a negative note and lost more than 40 points within five minutes. The negative momentum continued until the closure amid moderate ups and down and finally ended 143 points lower. The benchmark DSE General Index (DGEN), the main gauge of the market, went down by 143.29 points or 2.57 per cent to close at 5,411.99. The broader DSE All Shares Price Index (DSI) plummeted 120.53 points or 2.59 per cent to close at 4,524.94. The DSE-20 blue-chip index also fell 48.40 points or 1.22 per cent to close at 3,914.37. Professor Salauddin Ahmed Khan, a finance teacher at the Dhaka University told the FE, "The market could not get strength as most of the banks' assurances are yet to see light and there is also some confusion among the investors." "The investors are not convinced by the banks' assurance as they are not well co-coordinated and there is no balance between assurance and action," said Mr Khan, also former CEO of the DSE. "The frustrated investors wanted to leave the market by selling their stocks any how while the WB and IMF concern gave extra pressure to make investors more panicked," commented Mr Khan. Turnover value declined slightly to Tk 3.43 billion against Tk 3.50 billion in the previous session. A total of 50.20 million shares changed hands on the day against 45.81 million in the previous session. The trade deals also increased to 97,873 against Tuesday's 94,993. Total market capitalisation of the DSE, however, declined to Tk 2,663.83 against Tk 2, 7238.48 billion in the previous session. Banking issues, which make up one third of the DSE market capitalisation, lost 2.12 per cent after adding 1.87 per cent in the previous session. Heavy weight GP entered into the losing streak after three straight session of gain and lost 3.71 per cent on the day. Among other sectors NBFIs and pharmaceuticals lost 3.51 per cent and 2.02 per cent respectively. Grameenphone (GP) topped the turnover list with shares worth Tk 228.24 million changing hands. The other turnover leaders were SIBL, Titas Gas, UCBL, National Bank, Malek Spinning, City Bank, Al-Arafa Islami Bank and Summit Power. British American Tobacco Bangladesh was the day's highest gainer following its positive quarterly financial report. The company recommended 50 per cent interim cash dividend for the year 2011. It was followed by First Bangladesh Shilpa Rin Sangstha Mutual Fund, Fourth ICB, Fifth ICB, Desh Garment, National Tea Company, ACI 20 per cent Convertible Zero Coupon Bonds, Sub 25 per cent Convertible Bonds of BRAC Bank, Samorita Hospital and Standard Ceramics. The day's worst losers included Alltex Industries, Metro Spinning, Rahima Food, Meghna Cement, Malek Spinning, Federal Insurance, Imam Button, BD Autocars, Prime Insurance and HR Textile.