Monday, March 2, 2015

Investors go for short-term profit booking - DSE turnover crosses Tk 3.0b-mark again

FE Report - 01 March'2015 Monday
Stocks slipped into the red again Sunday as investors went for short-term profit booking amid no improvement in the political front.

The market opened with a positive note, but could not sustain as the session progressed. At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down by 23.56 points or 0.49 per cent to close at 4,739.65 points.

The two other indices also closed in the red zone. The DS30 index, comprising blue chips lost 13.63 points or 0.76 per cent to close at 1,758.78 points. The DSE Shariah Index (DSES) shed 8.24 points or 0.72 per cent to close at 1,122.67 points.

Turnover on DSE crossed Tk 3.0 billion-mark once again and amounted  to Tk 3.36 billion, registering an increase of 13.7 per cent over the over the previous session's value of Tk 2.96 billion.

A number of banks declared dividend and year-end earnings; consequently the investors' attention was mostly focused on banks - the sector accounted for 12.7 per cent of the day's total turnover followed by engineering 12.5 per cent and power 12.2 per cent.

"The short-term profit booking tendency of the market participants created the selling spree, which sustained throughout the session," International Leasing Securities said in an analysis.

However, turnover increased by 13.7 per cent from the previous session as driven by investors' panicky selling preferences, said the International Leasing.

LankaBangla Securities said: "Benchmark index eroded previous day's gain as political outlook of the country still remains bleak and investors went for profit booking".

However, listed multinational companies maintained their payout policy in 2014 as reflected by the corporate declarations which hit on the screen in early morning, said the stock broker.

IDLC Investments said: "Market continued the downturn as long-term outlook became bleak for investors due to ongoing political unrest".

Most of the major sectors ended flat, with banking and telecommunication stocks gaining 0.11 per cent and 0.09 per cent market capitalization respectively. Food and allied and power advanced by 0.19 per cent and 0.16 per cent respectively.

Cement sector lost 2.95 per cent as Lafarge Surma Cement, the top weighted stock of the sector, lost 5.2 per cent alone. NBFIs also went down by 1.53 per cent. Pharmaceuticals closed lower by 0.34 per cent.

The losers took a modest lead over the gainers as out of 309 issues traded, 188 declined, 86 advanced and 35 remained unchanged on the DSE floor.

Activities increased in the major bourse where volume and trade were up 16.83 per cent and 14.59 per cent respectively. A total number of 0.093 million trades were executed with trading volume of 72.94 million securities.

The market capitalisation on DSE stood at Tk 3,210.31 billion against Tk 3,217.18 billion in the previous session.

The port city bourse, Chittagong Stock Exchange (CSE) also closed slightly lower with its Selective Categories Index - CSCX - lost 4.01 points to close at 8,850.40 points.

Losers beat 154 to 50, with 22 issues remaining unchanged at the port city bourse that traded 11.92 million shares and mutual fund units, turnover value of Tk 397.12 million.

babulfexpress@gmail.com

Bourse sees lowest net portfolio investment in 6 months

FE Report - 01 March'2015 Monday
Babul Barman

Bourse sees lowest net portfolio investment in 6 months
Net foreign investment in the Dhaka Stock Exchange (DSE) dipped by 86 per cent in February compared to January, 2015 as foreign fund managers were in selling spree amid ongoing political unrest.

Foreign investors bought shares worth Tk 2.50 billion and sold shares worth Tk 2.19 billion, taking their net investment to Tk 317.40 million in February, according to statistics from the DSE.

In January, overseas investors bought shares worth Tk 3.65 billion and sold shares worth Tk 1.36 billion to take net investment to Tk 2.28 billion, the DSE data showed.

 It was also the lowest single-month net foreign investment in DSE for the last six months since August, 2014. In August 2014, net foreign investment was Tk 124.56 million, the DSE statistics showed.

"The net foreign investment in DSE fell drastically in February as foreign fund managers were in selling mood throughout the month amid prolonged political unrest," said a leading stock broker who deals with portfolio investment.

He said that the foreign investors always want to see a peaceful and stable political environment for their investment. "As the country's political situation deteriorated, they went for selling spree to book profit," he added.

"The foreign investors also keenly observed the country's political developments as political unrest eat-up companies' profitability, resulting lower dividend," he said.

Stock indices, however, remained flat in February. DSEX, the benchmark index of the premier bourse, gained 39.17 points or 0.82 per cent over the month of February.

Akter H Sannamat, managing director of Union Capital said that the foreign investors went for selling spree as political outlook remained cloudy.

The foreign investors are 'watching' the market movement and want a peaceful solution of political uncertainty, he said.

He stressed the need for political stability, improvement in power and infrastructure, macroeconomic equilibrium and foreign investors-friendly policies to attract more portfolio investment into the stocks.

Also known as portfolio investment, foreign investments accounted for around 2 per cent of DSE's total market capitalisation of Tk 3,210.31 billion as of Sunday.

Banks, non-bank financial institutions, power and energy, pharmaceuticals, telecoms and IT are the preferred sectors of portfolio investors, an investment banker said.

They also focused on some multinational stocks that announced healthy dividends and generated good profits, he added.

In 2014, foreign investors bought shares worth Tk 44.06 billion and sold shares worth Tk 17.98 billion to take their net investment to Tk 26.08 billion, which was a record high, according to DSE statistics.

babulfexpress@gmail.com

Profit taking pushes stocks into the red

Daily Star - 01 March'2015 Monday

The profit-minded selling of stocks and mutual fund units pushed the market to end in the red yesterday, as the long-drawn political strife weighed on the economy.
DSEX, the prime index of Dhaka Stock Exchange, lost 23.56 points or 0.49 percent, to close at 4,739.65.
DSES, the shariah index of Dhaka bourse, shed 8.24 points or 0.72 percent, to close at 1,122.67 points.
The benchmark index shed the previous day's gains as political outlook remained bleak and investors took profits, LankaBangla Securities said. The market remained negative as long-term outlook for investors became bleak due to ongoing political unrest, IDLC investments said.
Turnover, the most important indicator of the market, advanced 13.69 percent to Tk 337 crore, compared to the previous day.
Most of the major sectors ended flat. The banking sector gained 0.11 percent in market cap, followed by telecom's 0.09 percent, food 0.19 percent and power 0.16 percent.
Cement lost 2.95 percent as Lafarge Surma Cement lost 5.2 percent alone. Non-bank financial institutions fell 1.53 percent and pharma lost 0.34 percent.

The losers took a modest lead over gainers as 188 declined, 86 advanced and 35 remained unchanged on the DSE.
A total of 0.93 lakh trades were executed with 7.29 crore shares and mutual fund units changing hands on the Dhaka bourse.
Heidelberg Cement was the most traded stock with 4.08 lakh shares worth Tk 21.96 crore bought and sold, just after the company declared 380 percent cash dividends. It was followed by Lafarge Surma Cement.
Social Islami Bank was the day's top gainer, posting a rise of 12.77 percent following its corporate declaration of 18 percent cash dividends, while Modern Dyeing ended down 9.32 percent to become the day's worst loser.
Published: 12:00 am Monday, March 02, 2015

Wednesday, February 25, 2015

DSE, CSE witness marginal correction - Investors remain shaky amid no improvement in political front

FE Report - 25 February'2015 Wednesday
The market witnessed marginal correction Tuesday after two sessions' positive trend with turnover falling slightly as investors remained shaky amid no improvement in the political front.

The market opened with a positive note, but could not sustain as the session progressed. Eventually, DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down marginally by 7.49 points or 0.15 per cent to close at 4,801.14 points.

The two other indices also ended in the red. The DS30 index, comprising blue chips lost 4.58 points or 0.25 per cent to close at 1,793.07 points. The DSE Shariah Index (DSES) shed 3.08 points or 0.26 per cent to close at 1,140.18 points.

The total turnover stood at Tk 3.09 billion, registering a decline of 1.90 per cent over the over the previous session's value of Tk 3.15 billion.

The investors' attention was mostly focused on pharma, power and banks - the sectors that accounted for 17.3 per cent, 15.6 per cent and 11.7 per cent respectively of the day's total turnover.

"The market closed in marginally lower note amid the cautious stance from the investors," said International Leasing Securities in an analysis.

However, market turnover endured above Tk 3.0 billion-mark for the second consecutive session reflecting that, the investors are optimistic about the fourth coming year-end declaration and started to take position, said the International Leasing.

The port city bourse, Chittagong Stock Exchange (CSE) also ended slightly lower with its Selective Categories Index - CSCX - lost 15.01 points to close at 8,908.48 points.

Losers beat gainers 121 to 78, with 44 issues remaining unchanged at the port city bourse that traded 5.84 million shares and mutual fund units, turnover value of Tk 235.20 million.

    babulfexpress@gmail.com

Commodity exchange - BSEC body for installation of many facilities

FE Report - 25 February'2015 Wednesday
Mohammad Mufazzal
A BSEC committee has recommended for installation of many facilities such as warehouse facility, quality and quantity specifications, undisrupted transportation and delivery of commodity for introducing commodity exchange, officials said.

The committee said national policies will also be required on certain issues to establish commodity exchange.

The three-member committee earlier formed by the Bangladesh Securities and Exchange Commission (BSEC) made the recommendations in its final report submitted to the commission.

The regulator formed the body to submit report regarding the formulation of rules of commodity exchange following the demand raised by some private entrepreneurs.

A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity exchanges across the world trade in agricultural products and other raw materials like wheat, jute, sugar, maize, cotton, oil, metals, etc and contracts based on them.

Seller, broker and buyer are the three main participants of the commodity exchange.

Risk management framework, large supply and demand and strong market surveillance are required while operating the commodity exchange.

The securities regulator, however, said presently they are not in a position to formulate the rules of commodity exchange as they have prioritised the formulation of rules for proposed Clearing Corporation and venture capital financing on an urgent basis.

"It's a tough job to ensure the quality of the products which are traded through commodity exchange. Relevant infrastructure should also be ensured before launching the commodity exchange," said Arif Khan, a BSEC commissioner.

He said the regulator must introduce the commodity exchange by conducting required studies.

"But presently the securities regulator is working to introduce Clearing Corporation and venture capital financing. After completing such job the regulator will move forward for commodity exchange," Mr. Khan said.

Wali-ul Maroof Matin, the leading proponent of commodity exchange, took the first attempt to launch commodity market in the country decades back.

Myanmar government also invited Mr. Matin to set up the first commodity exchange in that country.

"Commodities are being exchanged through scattered ways. I think such exchanges of commodities must be brought under the purview of an exchange for the sake of the country's development," said Mr. Matin, also the incumbent managing director of the Chittagong Stock Exchange (CSE).

He said the regulator may its set priority to clearing corporation and venture capital financing considering their importance.

"At the same time, we need the formulation of policy and its implementation to start the commodity exchange in our country," Matin added.

The recommendations of the BSEC committee has also included the government's control over export and import, tariff and non-tariff trade barriers, regulated foreign exchange and cross border trading and restrictions on capital account of balance of payment (BOP).

 "Government's control over exchange and interest rates, land reform, direct market operation and intervention, subsidy and restrictions on agriculture and mineral resources, market and price control, financial education, transport policy, regulatory control over spot commodity market etc is also required for introducing the commodity exchange," the report said.

The report also recommended that at introductory stage, the commodity exchange may be started with spot contracts.

"For spot trades, short sales may be allowed on a selective basis for imported commodities, which are in transit. For a reasonable period at the initial stage, only physical settlement may be allowed for derivative products, later on, cash settlement can be allowed," the report said.

mufazzal.fe@gmail

Tuesday, February 24, 2015

Stocks end flat

Daily Star - 24 February'2015 Tuesday

Stocks ended flat yesterday as investors offloaded shares and mutual fund units to bag profits amid the political turbulence that has gripped the country since January 6.
DSEX, the benchmark general index of the Dhaka Stock Exchange, gained 6.46 points or 0.13 percent, to close at 4,808.64.
DSES, the shariah index of DSE, rose 7.14 points or 0.63 percent, to finish at 1,143.17.
“Despite a gloomy political scenario, investors remained active in large cap stocks, which surged the market in the early hours but failed to keep up the momentum as the day progressed,” said IDLC Investments.
The market gained in the early morning, but the gains did not last till the end of the day, said LankaBangla Securities.
Turnover, the most important indicator of the market, advanced 28.4 percent to Tk 315 crore, compared to the previous day.
A total of 0.87 lakh trades were executed with 6.81 crore shares and mutual fund units changing hands on the Dhaka bourse.

Of the 311 issues that traded on the DSE, 126 advanced, 144 declined and 41 remained unchanged.
Among the major sectors, pharma gained 1.07 percent, followed by cement 1.46 percent and telecom 0.37 percent.
Square Pharma was the most traded stock of the day with 6.38 lakh shares worth Tk 16.86 crore changing hands, followed by United Commercial Bank, Bangladesh Submarine Cable Company, ACI, Ifad Autos, Lafarge Surma Cement and Shahjibazar Power Company.
Alltex Industries was the highest gainer of the day with a 9.70 percent rise, with Imam Button being the worst loser, plunging by 9.09 percent.
Chittagong Stock Exchange declined yesterday as its selective categories index, CSCX, lost 8.31 points to close at 8,923.49.
Losers beat the gainers 115 to 85, as 35 remained unchanged out of the 235 issues that were traded on the CSE floor. Total 74.16 lakh shares changed hands with Tk 26.25 crore in turnover.
Published: 12:01 am Tuesday, February 24, 2015


UCBL, Prime Ins recommend dividends

FE Report - 24 February'2015 Tuesday
The Board of Directors of United Commercial Bank Limited (UCBL) and Prime Insurance have recommended 30 per cent and 15 per cent dividend respectively for their shareholders for the year ended on December 31, 2014, reports UNB.

UCBL has recommended a total of 30 per cent dividend including 10 per cent cash dividend and 20 per cent stock dividend for its shareholders.

On the other hand, Prime Insurance has recommended a total of 15 per cent dividend including 10 per cent cash dividend and 5 per cent stock dividend.

The Annual General Meeting (AGM) of UCBL will be held on March 31 and the record date is March 4. Time and venue for the AGM will be notified later, according to the DSE website.

UCBL has also reported EPS of Tk 4.39, NAV per share of Tk 26.88 and NOCFPS of Tk 1.81 for the year ended on December 31, 2014.

The AGM of Prime Insurance will be held on March 30 at Bangladesh Institute of Administration and Management (BIAM), 63, New Eskaton, in the capital while the record date is March 4, according to the DSE website.
FE Report - 24 February'2015 Tuesday
Stocks ended flat Monday with turnover crossing Tk 3.0 billion-mark once again as investors remained focused on large-cap stocks despite prolonged political turmoil in the country.

The market opened with an upward note, gaining 35 points, but the early enthusiasm slowed down later. Eventually, DSEX, the prime index of the Dhaka Stock Exchange (DSE) ended at 4,808.64 points, gaining 6.46 points or 0.13 per cent.

The two other indices also ended in the green. The DS30 index, comprising blue chips gained 9.50 points or 0.53 per cent to close at 1,797.66 points. The DSE Shariah Index (DSES) advanced 7.14 points or 0.62 per cent to close at 1,136.12 points.

Trading at DSE was relatively active compared to the last six sessions. The total turnover amounted to Tk 3.15 billion, registering an increase of 28.4 per cent over the over the previous session's value of Tk 2.45 billion.

The investors' attention was mostly concentrated on pharma, banks and power - the sectors that accounted for 17 per cent, 10.6 per cent and 10.5 per cent respectively of the day's total turnover.

"The market ended flat in green amid growing optimism from the investors despite ongoing political strife," said International Leasing Securities in an analysis.

Early buying pressure slowed down in the later part of the session. Several stocks from major sectors like banks, engineering and food and allied witnessed price correction, said the International Leasing.

IDLC Investments said: "Despite gloomy political scenario, investors remained active in large-cap stocks, which surged the market in the early hours but failed to keep up the momentum as the day progressed".

LankaBangla Securities said: "Market gave some return in early morning, though it erased this gain on profit booking. At the end of trading, DSEX closed flat but remained mostly positive after moving sharply up around 35 points in early trading".

"The market is still looking for the political resolution. Some sector specific stocks are benefiting from optimism about the corporate earnings," said the stock broker.

Among the major sectors banks and food and allied sectors lost 0.69 per cent and 0.23 per cent respectively.

All the other major sectors closed in green. Cement posted the highest gain of 1.46 per cent followed by pharmaceuticals which advanced by 1.07 per cent. Telecommunication and NBFIs both appreciated by 0.37 per cent and 0.28 per cent respectively. Power closed flat in green with 0.04 per cent gain.

The losers took a modest lead over the gainers as out of 311 issues traded, 144 decline, 126 advanced and 41remained unchanged on the DSE floor.

Activities increased in the major bourse where volume and trade were up by 20.83 per cent and 24.67 per cent respectively. A total number of 0.087 million trades were executed with trading volume of 68.12 million securities.

The market capitalisation on DSE stood at Tk 3,234.32 billion against Tk 3,227.48 billion in the previous session.

In the top turnover list, nine out of ten issues were large-cap stocks. Square Pharma was the most traded stock with shares worth Tk 168.68 million changing hands followed by UCBL, BSCCL, ACI and IFAD Autos.

Altex Industries was the day's top gainer, posting a rise of 9.70 per cent while Imam Button was the day's worst loser, losing 9.09 per cent.

However, the port city bourse, Chittagong Stock Exchange (CSE) ended in the red with its Selective Categories Index - CSCX - lost 8.30 points to close at 8,923.49 points.

Losers beat gainers 115 to 85, with 35 issues remaining unchanged at the port city bourse that traded 7.42 million shares and mutual fund units, turnover value of Tk 262.47 million.

babulfexpress@gmail.com

Friday, February 20, 2015

United Power Generation IPO lottery held

FE Report - 20 February'2015 Friday
IPO lottery of United Power Generation & Distribution Company Limited was held Thursday at the Institution of Engineers in the city for allocating shares among the investors, officials said.

IPO result has already been published on the websites of United Power Generation & Distribution Company, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).

Moinuddin Hasan Rashid, Managing Director of United Power Generation & Distribution Company, Md Mustafizur Rahman, company secretary, Moshiur Rahman, CEO of ICB Capital Management and representatives of issue manager, DSE, CSE and Central Depository Bangladesh Ltd (CDBL) were present, among others.

In November last year, the securities regulator - Bangladesh Securities & Exchange Commission (BSEC) had given its consent to United Power Generation & Distribution Company to go public under book building method (BBM).

Under the book building method, the company offloaded 33 million ordinary shares at an offer price of Tk 72, including a premium of Tk 62 for each Tk 10 share.

The company raised a fund worth above Tk 2.37 billion for redemption of its preference shares, repayment of bank loans, and meeting IPO processing expenses.

Successful institutional investors got 40 per cent of the offloaded shares, whereas small investors, mutual funds (MFs), non-resident Bangladeshis (NRBs) and general investors got the remaining 60 per cent shares.

The public subscription of the company was held between January 18 to January 22 for resident Bangladeshi and it was continued till January 31 for non-resident Bangladeshi (NRBs).

The company's IPO subscription is over subscribed by 5.87 times as the company received over Tk 8.37 billion against public issue of over Tk 1.42 billion.

As per the audited financial statement for the year ended on December 31, 2013, the company's earning per share (EPS) and net asset value (NAV) are Tk 5.98 and Tk 23.64 respectively.

LankaBangla Investments is the issue manager and ICB Capital Management is the registrar to the issue.

    babulfexpress@gmail.com

Completion of one year of demutualisation - CSE sets agendas to protect investors' interest

FE Report - 20 February'2015 Friday
The port city bourse has planned to prioritise investors' interest in addition to its own business for the first two years of completing the demutualisation process, officials said.

As part of its move on securing investors' interest, the Chittagong Stock Exchange (CSE) has also set some agendas to reach investors through 'meaningful ways'.

Wali-ul Maroof Matin, the CSE managing director, Thursday said this at a press briefing arranged on the occasion of completing one year of demutualised exchange.

"In last one year we have completed the homework on our team building along with setting the agendas through which investors could be reached," Mr. Matin said.

He said the CSE is ready to provide due benefits of investors by implementing the agendas.

The CSE chairman Dr. Muhammad Abdul Mazid said a qualitative change has been attained in the activities of the board of the demutualised exchange.

"The board of the exchange has included majority umber of independent directors. The independence of our regulatory affairs division is another important characteristic of the demutualised exchange," Dr. Mazid said. 

Echoing Dr. Mazid, the CSE managing director Mr. Matin said qualitative change is very much visible in the activities of demutualised board comprised of businesses, educationalists and professional persons of other sectors.

He said the port city bourse would make investment and capital market related information available to investors.

"Presently we are reviewing 1024 complaints so far filed by investors. We are optimistic that such figure of investors' complaints will come down to zero by June this year," Matin said.

The CSE managing director said that they would open official pages within this month on social medias such as facebook in an effort to receive the complaints and suggestions of market intermediaries and investors.

"At the same time, the CSE will also introduce another gateway of its website in Bengali."

The CSE managing director said that their another objective is to provide right information regarding listed companies having strong fundamentals to investors.

"The port city bourse has continued discussions with some local and international organisations for accepting strategic partner soon as per the law of the demutualisation," Mr. Matin added.

At Thursday's press briefing, five other CSE directors-- Dr. Mohammad Ayub Islam, Dr. Moinul Islam Mahmud, Showkat Hossain, Mohammad Khairul Anam Chowdhury and Mohammed Mohiuddin-were present.

As per demutualisation scheme, the CSE formed its demutualised board on February 15, 2014. The 13-member board has included seven independent directors, four shareholder directors, managing director and one strategic partner.

The post of strategic partner will remain vacant in the board until any partner is found.

mufazzal.fe@gmail.com

Shasha Denims gets listing approval from DSE

FE Report - 20 February'2015 Friday
Shasha Denims Ltd (SDL), one of the leading Denims producers in Bangladesh, got listing approval from the Dhaka Stock Exchange (DSE) Wednesday, officials said.

Trading date of the Shasha Denims will be announced soon, said a DSE official. "We will fix the trading date after transferring shares to respective beneficiary owners' (BO) accounts" he said.

The initial public offering (IPO) subscription of the denim producer took place in mid-December of last year.

The Denims producers floated 50 million ordinary shares at an offer price of Tk 35, including a premium of Tk 25 for each Tk 10 share and raised a fund worth Tk 1.75 billion from public.

IPO subscription of the company over subscribed by 5.50 times as the company received over Tk 9.63 billion against public issue of over Tk 1.75 billion.

Shasha Denims is the 39th listed firm under the textile sector on the DSE that accounts for around 3.50 per cent of the DSE's total market capitalisation.

IPO fund is begin used for expanding business, repay bank loans and bear the expenses of the IPO proceedings.

According to the audited financial reports for the year that ended on December 31, 2013, the company's earnings per share stand at Tk 3.73, while its net asset value is Tk 52.95.

AFC Capital and Imperial Capital acted as issue manager of the Shasha Denims's IPO.

The securities regulators -- Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of Shasha Denims on October 10, last year.

Shasha Denims Ltd (SDL) is one of the leading denims fabric producers in Bangladesh since 2000. SDL is located at Dhaka Export Processing Zone (DEPZ), according to the company's IPO prospectus.

babulfexpress@gmail.com

Stocks slip marginally lower amid slight rise in turnover

FE Report - 20 February'2015 Friday

 Stocks slip marginally lower amid slight rise in turnover
Stocks edged marginally lower Thursday after remaining flat in the previous day as worried investors went for selling spree amid prolonged political unrest in the country.

DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down by 14.04 points or 0.29 per cent to close at 4,788.23 points after struggling to hold 4,800-mark amid choppy trading.

The two other indices also closed in the red. The DS30 index, comprising blue chips lost 8.31 points or 0.46 per cent to close at 1,777.86 points. The DSE Shariah Index (DSES) shed 5.41 points or 0.47 per cent to close at 1,128.29 points.

Trading at DSE remained dry with turnover hovering around Tk 2.5 billion in the last three sessions. The total turnover stood at Tk 2.66 billion, registering an increase of 2.70 per cent over the over the previous session's value of Tk 2.59 billion.

The investors' attention was mostly focused on banks, power and pharma - the sectors that accounted for 16.9 per cent, 13.7 per cent and 11.3 per cent respectively of the day's total turnover.

 "Market closed on the last day of this week struggling below 4,800-mark as political unrest continued to grip the stocks' movement," said LankaBangla Securities in its analysis.

 "Market acted indecisively as index showed a lack of direction moving up and down throughout the trading session," said the stock broker.

International Leasing Securities said: "The prime bourse tuned negative amidst dwindle participation from the market participants".

The investors went for selling spree which sustained throughout the session. The investors' attention was mostly grabbed by large-cap stocks and price correction on few major sectors drove the decline in indices.

IDLC Investments said: "The equity market passed another sluggish day where investors remained passive, pursuing a wait and see strategy".

Market observed movement in large-cap stocks after a long interval where GP remained the most liquid stock of the day while the investors' new found enthusiasm for banks which generated the highest turnover for the second consecutive session, said the merchant bank.

The major sectors posted mixed performances. Telecommunication registered the highest loss of the session with 3.15 per cent following price adjustment of GP after record date. Cement and power retraced 1.08 per cent and 0.31 per cent respectively.

Banks closed flat in red with a loss of 0.05 per cent. NBFIs advanced 1.40 per cent. Pharmaceuticals also saw a decent gain of 0.98 per cent. Food and allied sector also closed marginally higher by 0.10 per cent.

The losers took a modest lead over the gainers as out of 307 issues traded, 153 declined, 109 advanced and 45 remained unchanged on the DSE floor.

Activities mixed in the major bourse where volume and trade were down by 14.11 per cent and 2.22 per cent respectively. A total number of 0.071 million trades were with trading volume of 65.19 million securities.

The market capitalisation on DSE stood at Tk 3,210.42 billion against Tk 3.223.47 billion in the previous session.

GP was the most traded stock with shares worth Tk 118.35 million changing hands followed by UCBL, Lafarge Surma Cement, SPCL and Square Pharma.

ICB First NRB Mutual Fund was the day's top gainer, posting a rise of 8.91 per cent while Exim Bank First Mutual Fund was the worst loser, plunging by 8.69 per cent.

The port city bourse, Chittagong Stock Exchange (CSE) also ended in red with its Selective Categories Index - CSCX - lost 31.46 points to close at 8,898.48 points.

Losers beat gainers 128 to 72, with 36 issues remaining unchanged at the port city bourse that traded 5.42 million shares and mutual fund units, turnover value of Tk 181.25 million.

babulfexpress@gmail.com

Thursday, February 19, 2015

Stocks jittery over political uncertainty

Daily Star - 19 February'2015 Thursday

Stocks closed flat yesterday as investors sold shares and mutual fund units to bag profits amid the political chaos across the country.
DSEX, the benchmark general index of Dhaka Stock Exchange, rose 1.86 points or 0.04 percent, to close at 4,802.27.
DSES, the shariah index of DSE, fell 2.81 points or 0.25 percent, to finish at 1,113.70.
Market saw a zigzag movement and mixed performance, although profit-taking was still on the menu, said LankaBangla Securities.
Investors remained cautious over political and macroeconomic development, IDLC Investments said, adding that they preferred banking stocks upon expectation of favourable corporate declarations in the coming months.
Banks gained the most yesterday, rising 1.16 percent, followed by general insurance at 0.63 percent, pharmaceuticals 0.47 percent and tannery 0.42 percent. Cement shares lost 1.40 percent, followed by textiles 0.77 percent and information technology 2.10 percent.
Turnover, the most important indicator of the market, advanced 4.3 percent from the previous day to Tk 259 crore.

Of the 301 issues that traded on the DSE floor, 135 advanced, 144 declined and 31 remained unchanged.
A total of 0.74 lakh trades were executed, with 7.59 crore shares and mutual fund unit changing hands on the Dhaka bourse.
Shahjibazar Power Company was the most liquid stock of the day with its transaction of 9.56 lakh shares worth Tk 14.32 crore, followed by City Bank, Ifad Autos, Lafarge Surma Cement and MJL Bangladesh.
ICB AMCL Second Mutual Fund was the highest gainer of the day, rising 6.12 percent, while Shahjibazar Power Company was the biggest loser, shedding 9.95 percent of its value.
Chittagong Stock Exchange ended the day on a better note than the previous one, with its selective categories index, CSCX, gaining 24.10 points, to close at 8,929.95.
Losers beat gainers by 107 to 91, while 23 stocks remained unchanged. Some 7.22 lakh shares and mutual fund units were traded to log in a turnover of Tk 22 crore.
Published: 12:00 am Thursday, February 19, 2015



Dhaka stocks end flat in volatile trading

New Age - 19 February'2015 Thursday


Dhaka stocks finished flat in volatile trading on Wednesday as investors adopted a ‘wait-and-see’ approach.
The key index of Dhaka Stock Exchange, DSE, finished at 4,802.27 points, adding 0.03 per cent or 1.86 points.
The DSEX increased by 27 points to 4,827 points in the first half an hour of trading following media reports on the United Nation secretary general’s move in resolving the ongoing political crisis, market operators said.
They said the key index in the next 45 minutes of trading declined to 4,796.81 points after an International Crimes Tribunal on the day had announced its verdict sentencing a Jamaat leader capital punishment on war crime charges.
Later the market in volatile trading finished flat as investors adopted a ‘wait-and-see’ approach to assess situation, operators said.
Of the 310 shares and mutual funds traded, 135 advanced, 144 declined and 31 remained unchanged.
DS30, the blue-chip index of the DSE, finished at 1,786.17 points, declining by 0.03 per cent or 0.54 points.
The Shariah index of the bourse, DSES, fell by 0.24 per cent, or 2.81 points, to close at 1,133.70 points.
The turnover at the bourse increased to Tk 259.35 crore on the day compared with that of Tk 248.67 crore in the previous trading session.
‘Demonstrating strong volatility in mini and small caps, the bourse ended flat,’ IDLC Investments said in its daily market commentary.
However, investors preferred centralising to bank scrips after a long time, based on the expectation of upcoming corporate declarations, it said.
‘Hence, the sector led both the performance and turnover charts, capturing 19 per cent of today’s [Wednesday’s] trade value,’ it said.
‘Throughout the session, clientele remained cautious over political as well as macroeconomic landscape,’ it said.
‘The market saw a zigzag movement and mixed performance today [Wednesday] although profit-taking was still on the menu,’ LankaBangla Securities said in its daily market analysis.
The benchmark index is following the range bound pattern as gain from the financial stocks was capped by mixed performance of power, telco and MNCs stocks, it said.
Shahjibazar Power Company led the turnover leaders with its shares worth Tk 14.32 crore changing hands.
City Bank, IFAD Autos, Lafarge Surma Cement, MJL Bangladesh, Bangladesh Submarine Cable Company, CVO Petrochemicals, Agni System, BEXIMCO and Aamra Technologies were among the other turnover leaders.
ICB AMCL Second Mutual Fund gained the most on the day with a 6.12-per cent increase in its share price, while Shahjibazar Power Company was the worst loser of the day, shedding 9.95 per cent.

Investors follow cautious stance

FE Report - 19 February'2015 Thursday

Investors follow cautious stance
Stocks ended flat Wednesday with turnover remained sluggish as most of the investors followed cautious stance amid ongoing political turmoil in the country.

The market opened with an upward note following previous day's upturn. However, the market could not sustain the momentum after the first half an hour and closed flat in green amid volatility.

DSEX, the prime index of the Dhaka Stock Exchange (DSE) ended at 4,802.27 points, gaining only 1.86 points or 0.03 per cent.

However, the two other indices closed in red. The DS30 index, comprising blue chips lost 0.54 points or 0.03 per cent to close at 1,786.17 points. The DSE Shariah Index (DSES) shed 2.81 points or 0.24 per cent to close at 1,133.70 points.

Trading at DSE remained dry. The total turnover stood at Tk 2.59 billion, registering an increase of 4.43 per cent over the over the previous session's value of Tk 2.48 billion.

The investors' attention was mostly focused on banks, power and engineering - the - the sectors that accounted for 19 per cent, 17.9 per cent and 10.9 per cent respectively of the day's total turnover.

"A day-long battle among the optimistic and pessimistic investors concluded flat in the trading session of the country's major bourse," said International Leasing Securities in an analysis.

Participation from the investors also remained shaky as they watchful about the micro-economic outlook, said the International Leasing.

Banking sector endured on the gaining streak for the third consecutive session, but profit booking attitude in several other stocks cut away the surge in indices, the International Leasing added.

IDLC Investments said: "Demonstrating strong volatility in mini-cap and small-cap stocks, the bourse ended flat".

However, investors preferred centralizing to banks after a long time, based on the expectation of upcoming corporate declarations. The sector led both the performance and turnover charts, capturing 19 per cent of day's total turnover, said the merchant bank.

Throughout the session, clienteles remained cautious over political as well as macro-economic landscape. As a result, participation was not widely held across the broad, the merchant bank added.

LankaBangla Securities said: "Market saw a zigzag movement and mixed performance although profit taking was still on the menu".

Benchmark index is following the range bound pattern as gain from the financial stocks were capped by mixed performance of power, telecommunication, and multinational companies stocks, the stock broker said.

The port city bourse, Chittagong Stock Exchange (CSE), however, ended in positive with its Selective Categories Index - CSCX - gained 24.10 points to close at 8,929.95 points.

Losers beat gainers 107 to 91, with 23 issues remaining unchanged at the port city bourse that traded 7.22 million shares and mutual fund units, turnover value of Tk 214.98 million.

babulfexpress@gmail.com

Wednesday, February 18, 2015

Index at DSE and CSE drops on Sunday

Daily Sun - 18 February'2015 Wednesday
The stock index dropped low on the opening day of the week at both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).

According to the data provided on DSE website on 1:40 pm, the DSEX index hit 4,959 point, falling 8 point. The DSE-30 index was at 846 point, falling 8 point and the DSE index reached 179 point, falling 2 point; on Sunday.
Among the companies which saw transaction, share prices of 130 saw a rise in price, 128 experienced fall while 40 companies remained unchanged.
Today, shares and mutual fund units worth BDT 169 crore and 41 lakh was exchanged at DSE. On Thursday the amount was 294 crore and 29 lakh.
According to the data provided on Chittagong Stock Exchange (CSE) website on 1:06pm, the CSEX index was at 9,211 point, dropping a 12 point. The CSE-30 index reached 12,302, rising 12 point and the CSPI index dropped to 15,222 point, falling 32 point.
Among the 206 companies which saw transaction share prices of 88 increased, 88 fall in price and price of 30 remained unchanged. - See more at: http://www.daily-sun.com/online/stock-market/2015/01/11/3192#sthash.t3hcfmyU.dpuf


The stock index dropped low on the opening day of the week at both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).
According to the data provided on DSE website on 1:40 pm, the DSEX index hit 4,959 point, falling 8 point. The DSE-30 index was at 846 point, falling 8 point and the DSE index reached 179 point, falling 2 point; on Sunday.
Among the companies which saw transaction, share prices of 130 saw a rise in price, 128 experienced fall while 40 companies remained unchanged.
Today, shares and mutual fund units worth BDT 169 crore and 41 lakh was exchanged at DSE. On Thursday the amount was 294 crore and 29 lakh.
According to the data provided on Chittagong Stock Exchange (CSE) website on 1:06pm, the CSEX index was at 9,211 point, dropping a 12 point. The CSE-30 index reached 12,302, rising 12 point and the CSPI index dropped to 15,222 point, falling 32 point.
Among the 206 companies which saw transaction share prices of 88 increased, 88 fall in price and price of 30 remained unchanged.


Tunnel kiln brick project in Rangpur - IDLC Finance to arrange Tk 400m syndicated loan

FE Report - 18 February'2015 Wednesday
Naz Auto Bricks Limited has mandated IDLC Finance Limited to raise a syndication fund of BDT 400 million to establish an energy efficient tunnel kiln brick project in Rangpur.

The project will be able to produce 3 crore (30 million) bricks per year equivalent to six fixed chimney kiln.

"State-of-the art tunnel kiln technology ensures energy efficient process and almost zero emission of hazardous gases," a statement of IDLC said Tuesday.

Government of Bangladesh as well as different foreign agencies such as World Bank and Asian Development Bank (ADB) are encouraging establishment of modern brick kiln technology and closure of traditional labour intensive and contaminated technology.

Soft credit line is also available from Bangladesh Bank as refinancing facility to implement such project.

Dr. Mizanur Rahman, Managing Director of Naz Auto Bricks Limited and Selim R.F. Hussain, CEO & Managing Director of IDLC Finance Limited formalized the signing in an agreement signing ceremony.

Senior officials of both the business organisations were also present during the signing ceremony.

Tuesday, February 17, 2015

Stocks fall for second day amid sell-offs

Daily Star  - 17 February'2015 Tuesday

 

DSEX, the benchmark general index of the Dhaka Stock Exchange, fell 61.71 points or 1.28 percent to close at 4,769.47. DSES, the shariah index of Dhaka bourse, fell 14.64 points or 1.28 percent to close at 1,132.48.
The market saw another bloodbath as investors refrained from making fresh investments amid political unrest, IDLC Investments said.
Turnover, the most important indicator of the market, advanced 5.9 percent to Tk 280 crore, compared to the previous day, the investment bank said.
All the major sectors closed in the red. Cement shares lost 2.56 percent in market capitalisation, followed by power 1.78 percent, non-bank financial institutions 1.47 percent, telecoms 0.86 percent, pharma 0.85 percent, food and allied 0.42 percent and banks 0.09 percent.
A total of 0.88 lakh trades were executed with 8.37 crore shares and mutual fund units changing hands on the Dhaka bourse. Losers beat the gainers 209 to 68, while 36 remained unchanged on the DSE floor.
Beximco was the most liquid stock of the day with 27.58 lakh shares worth Tk 9.52 crore being traded, followed by Ifad Autos, Aamra Technologies, MJL Bangladesh and Grameenphone.

Bangas became the highest gainer of the day with a 4.12 percent rise, while Summit Alliance Port was the worst loser, plunging by 6.88 percent.
Chittagong Stock Exchange also declined yesterday with its selective categories index, CSCX, losing 115.58 points to close at 8,851.46.
Of the 243 issues that traded, 174 declined, 44 advanced and 25 remained unchanged on the CSE where 85.82 lakh shares and mutual fund units changed hands with Tk 24 crore in turnover.
Published: 12:00 am Tuesday, February 17, 2015

BSEC gives priority to clearing corporation, venture financing

FE Report - 17 February'2015 Tuesday
Mohammad Mufazzal
A committee of the securities regulator has recommended formation of a Clearing Corporation like a demutualised organisation, having majority number of independent directors in its board for the sake of ensuring transparency and accountability, officials said.

The Bangladesh Securities and Exchange Commission (BSEC) is working to formulate the rules on formation of the Clearing Corporation by reviewing recommendations made by the concern committee.

A Clearing Corporation is an institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions.

Presently, the clearing and settlement department of the bourses are performing the job of settlement of daily transaction executed in the capital markets.

Arif Khan, a commissioner of the securities regulator, said the regulator has given first priority to the formulation of rules on venture capital and equity finance and Clearing Corporation.

"The structure of Clearing Corporation will be as like demutualised organisation where the board will include majority number of independent directors including the chairman," Mr. Khan said.

He said the BSEC will seek public opinion on draft rules of venture capital and equity finance by April this year.

"The rules on establishing Clearing Corporation will also be finalised by June this year. The regulator will seek technical assistance from Asian Development Bank (ADB) for introducing the Clearing Corporation," Khan said.

Most of the demutualised exchanges of other countries have separate Clearing Corporation.

The concern committee of the securities regulator has submitted its report on as to how the Clearing Corporation can be established.

According to the report, the ownership of the corporation will be limited among the institutes such as stock exchanges, banks and financial institutes.

The ownership of the Clearing Corporation will be separated from the management due to structure of demutualised organization.

The country's both the demutualised exchanges have to form their 13-member boards by appointing seven independent directors including the chairman.

Managing director of Dhaka Stock Exchange (DSE) Dr. Swapan Kumar Bala said both the bourses earlier proposed to establish unique Clearing Corporation.

"Our proposals included the demand of exchanges' majority stakes in the Clearing Corporation. However, we are not aware of the latest development of the Clearing Corporation," Mr. Bala said.

Another 3-member BSEC committee submitted its report recommending incorporation of a provision for creating closed-end Investment Fund (IF) in the proposed rules on private equity and venture financing to facilitate funding arrangements for prospective private firms.

The committee said investment managers will manage the investment funds by taking licence from the securities regulator. Such funds should also have trustee.

mufazzal.fe@gmail.com

Stocks suffer a big jolt - DSEX dips below 4,800-mark again

FE Report - 17 February'2015 Tuesday
The stock market saw a major setback Monday with prime index of the main bourse dipping below 4,800-mark once again as the ongoing political crisis is deepening day by day.

DSEX, the prime index of the Dhaka Stock Exchange (DSE) hit below the 4800-mark after three sessions and closed at 4,769.47 points, shedding 61.70 points or 1.27 per cent after witnessing volatility throughout the session.

The two other indices also closed lower. The DS30 index, comprising blue chips lost 29.78 points or 1.65 per cent to close at 1,775.11 points. The DSE Shariah Index (DSES) shed 14.64 points or 1.27 per cent to close at 1,132.48 points.

Turnover on DSE stood at Tk 2.80 billion, registering an increase of 6.06 per cent over the previous session's value of Tk 2.64 billion.

The investors' attention was mostly focused on engineering, power and pharma - the sectors that accounted for 13.0 per cent, 12.7 per cent and 12.1 per cent respectively of the day's total turnover.

"Stocks suffered another setback as short-term profit booking attitude from the investors' mounted the sell-off," International Leasing Securities said in an analysis.

Lacklustre trading behaviour from the market participants pushed the board based index of the prime bourse to close 1.28 per cent lower, said the International Leasing.

"The prolonged political strife failed to offer any clear indication of recovery to the investors. Stocks from major sectors witnessed major sell-off which continued throughout the session," the International Leasing Securities said.

IDLC Investments said: "Market saw another bloodbath while investors refrain from investment amid further political unrest".

However, turnover increased to Tk 2.80 billion as investors tried to cash out their position, said the merchant bank.

LankaBangla Securities said: "Market continued to go under selling pressure with DSEX closing the day below 4,800-mark".

The apparel sector has been going through a difficult time for the ongoing political unrest. Owners run their factories below capacity and will soon face a production shortfall due to a dearth of raw materials, said the stock broker, quoting news paper report.

Textile sector made 0.66 per cent loss in market capitalization, weigh by disappointing set of quarterly earnings from this sector. Makson Spinning gave Q1 earnings of Tk 22.72 million, down by 35.32 per cent from same period of previous year.

All the major sectors closed in red while cement disappointed the investors most. Cement posted the highest loss which shed 2.56 per cent. Power and NBFIs went down by 1.78 per cent and 1.47 per cent respectively.

Telecommunication, pharmaceuticals also lost 0.86 per cent and 0.85 per cent respectively. Food and allied and banks also retraced by 0.42 per cent and 0.09 per cent respectively.

The losers took a strong lead over the gainers as out of 313 issues traded, 209 declined, 68 advanced and 36 remained unchanged on the DSE floor.

Activities increased in the major bourse where volume and trade were up by 8.83 per cent and 7.78 per cent respectively. A total number of 0.088 million trades were executed with trading volume of 83.74 million securities.

The market capitalisation on DSE stood at Tk 3,214.02 billion against Tk 3.245.59 billion in the previous session.

Beximco was the most traded stock with shares worth Tk 95.20 million changing hands followed by IFAD Autos, Agni Systems, MJL BD and GP.

Bangas was the day's top gainer, posting a rise of 4.12 per cent while Summit Alliance Port Ltd was the day's worst loser, plunging by 6.88 per cent.

The port city bourse, Chittagong Stock Exchange (CSE) also ended lower with its Selective Categories Index - CSCX - lost 115.58 points to close at 8,851.46 points.

Losers beat gainers 178 to 44, with 25 issues remaining unchanged at the port city bourse that traded 8.58 million shares and mutual fund units, turnover value of Tk 241.81 million.

babulfexpress@gmail.com

Monday, February 16, 2015

Dhaka stocks fall on profit-taking sales after 8-day rise



New Age – 16 February’2015 Monday
Dhaka stocks fell marginally in volatile trading on Sunday, the first trading session of the week, due to profit-taking share sell-offs by investors after an eight-session rise.
The key index of Dhaka Stock Exchange, DSEX, fell by 0.21 per cent, or 10.54 points, to close at 4,831.17 points on Sunday.
The market ended negative amid volatility due to investors’ profit booking approach after the eight-day rise, stockbrokers said.
The DSEX had advanced 185 points in the eight trading sessions.
Gloomy political prospect might be another reason for the investors’ profit-taking approach, they said.
Turnover at the bourse declined to Tk 264.66 crore on Sunday compared with that of Tk 325.98 crore in the previous trading session.
‘Breaking an eight-session gaining trend, profit-booking in some mid capitalised stocks pushed the market to red,’ IDLC Investments said in its daily market commentary.
However, investors preferred micro capitalised scrips to grab return from daily volatility, it said.
‘Overall, investors remain concerned over country’s macroeconomic landscape, degrading day by day amid the ongoing political unrest,’ said IDLC.
‘The market lost some zeal today [Sunday] as bull had a pause for breath after rallying around 185 points in the last eight trading sessions,’ LankaBangla Securities said in its daily market analysis.
Persistent concern about the loss in business due to political unrest and economic outlook might have prevented stocks from rallying further, it said.
‘However, today’s [Sunday’s] loss can be attributed to profit-booking by investors,’ it said.
DS30, the blue-chip index of the DSE, finished at 1,804.89 points, shedding 0.41 per cent or 7.45 points.
The Shariah index of the bourse, DSES, closed at 1,147.12 points, shedding 0.24 per cent or 2.85 points.
Of the 310 shares and mutual funds traded on the day, 139 advanced, 131 declined and 40 remained unchanged.
BEXIMCO led the turnover leaders on the day with its shares worth Tk 11.24 crore changing hands.
IFAD Autos, CVO Petrochemicals, Grameenphone, Aamra Technologies, National Feed Mill, Beximco Pharma, MJL Bangladesh and RAK Ceramics were among the other turnover leaders.
National Feed Mill gained the most on Sunday with a 10.14-per cent increase in its share price, while NCCBL Mutual Fund-1 was the worst loser of the day, shedding 5.76 per cent.