Wednesday, May 20, 2015

DSE turnover crosses Tk 8 billion-mark Stocks shine for third day amid fresh investment

FE Report - 20 May'2015 Wednesday
Stocks extended their winning streak for the third session in a row Tuesday, with turnover crossing Tk 8.0 billion-mark again, as investors continued to inject fresh funds into the stocks amid growing optimism.

The market opened higher amid strong buying pressure in opening hour and the upward trend continued till closure of the session amid marginal volatility. DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 51.85 points or 1.17 per cent to close at 4,459.28 points.

The two other indices -- DS30 index, comprising blue chips, and DSES index also closed higher. DS30 rose 20.59 points or 1.23 per cent to close at 1,686.44 points while the DSES gained 14.07 points or 1.31 per cent to end at 1,083.74 points.

Turnover, the most important indicator of the market, soared to Tk 8.07 billion, registering an increase of 7.17 per cent over the previous session's Tk 7.53 billion. It was also the highest turnover since Tk 8.46 billion recorded on November 12, last year.

The investors' attention was mostly focused on power, engineering and pharma - the sectors that accounted for 20 per cent, 16 per cent and 15 per cent respectively of the day's total turnover.

Analysts said the market witnessed strong buying pressure, mostly from institutions as the apparent persistence of positive sessions has been pulling previously inactive investors, thus improving overall activity.

"Recent improvements in market situation seem to heighten investors' confidence and they are more active in taking positions," said an analyst.

IDLC Investments, a merchant bank, said, "With a clear silver line on the horizon, investors continued investing in the equity market in prospect of recovery of stock prices".

"Investors seemed to be diverting fund from money market as return from fixed income instruments fell," said the merchant bank.

"Stocks extended their winning streak for the third session in a row as bullish stance in capital market has lured more buyers with fresh fund," said LankaBangla Securities, a stock broker, in an analysis.

Large turnover value put the market on strong ground above the 4,400 level which reinforced the market sentiments, said the stock broker.

Top brokers sought the central bank and finance minister's intervention to stabilize the market through extending the timeframe for adjusting bank's over exposure up to December 31, 2020. "This would smooth out the forced selling pressure by the institutional investors in the market," said the stock broker.

"The revival of investors' confidence backed by the continued gaining spell and increased participation from the sideline helped the market to sustain its upward trend," said International Leasing Securities, a stock broker.

All large-cap sectors appreciated. NBFIs witnessed the highest gain of 4.48 per cent. Banks also moved up 1.32 per cent. Telecommunication went up by 1.11 per cent. Food and allied, power, pharma and cement advanced by 1.0 per cent, 0.94 per cent, 0.67 per cent and 0.58 per cent respectively.

Gainers took a strong lead over the losers as out of 310 issues traded, 210 advanced, 68 declined and 32 remained unchanged on the DSE floor.

Activities increased in the major bourse where volume and trade were up by 3.70 per cent and 7.69 per cent respectively. A total number of 0.180 million trades were executed with trading volume of 210.30 million securities.

The total market capitalisation on DSE stood at Tk 3,178.66 billion against Tk 3,145.60 billion in the previous session.

United Power Company and Distribution Company was the day's top turnover chart with shares worth Tk 385 million changing hands followed by KPCL, BSCCL, RAK Ceramics and Baraka Power.

Bangladesh General Insurance Company was the day's best performer, positing a rise of 10 per cent while Bangladesh Thai Aluminium was the day's worst loser, plunging by 7.14 per cent.

The port city bourse Chittagong Stock Exchange (CSE) also ended higher with its Selective Categories Index - CSCX - rose 99.72 points to close at 8,404.10 points.

Gainers beat losers 165 to 56, with 21 issues remaining unchanged at the port city bourse that traded 23.68 million shares and mutual fund units with  turnover value of Tk 693.22 million.

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Monday, May 18, 2015

Turnover crosses Tk 700cr but stocks finish flat

New Age - 18 May'2015 Monday


Dhaka stocks finished flat in volatile trading on Sunday with the Dhaka Stock Exchange’s turnover crossing Tk 700-crore mark as investors switched from one share to another amid corporate declarations.
The turnover at the bourse increased to Tk 710.60 crore on the day compared with that of Tk 669.39 crore in the previous trading session.
Sunday’s turnover was the highest after Tk 753.02 crore in November 16 last year.
The DSE’s key index, DSEX, finished at 4,315.99 points, adding 0.02 per cent or 1.10 points.
Increased prices of large capitalised scrips especially fuel and power shares helped the market to finish flat on Sunday despite the fact that the prices of almost two-third traded scrips declined on the day, market operators said.
The fuel and power sector rose by 8.84 per cent on Sunday.
Mixed first quarterly reports of different companies were among other factors in taking investors’ scrip switching move, they said.
DS30, the blue-chip index of the bourse, increased by 0.39 per cent, or 6.48 points, to close at 1,630.19 points on Sunday.
The Shariah index of the DSE, DSES, closed at 1,051.43 points, adding 0.47 per cent or 4.95 points.
Of the 307 shares and mutual funds traded on the day, 106 advanced, 188 declined and 13 remained unchanged.
‘The market entered in sideways move, as investors were cautiously weighing investment alternatives,’ IDLC Investments said in its daily market commentary.
‘While deep discount in multiple scrips attracted opportunistic investors from the sideline, mostly negative growth earnings declarations kept valuation timid, making investors to tread discreetly,’ it said.
After a volatile session, the market ended flat but the DSEX managed to sustain above the psychological 4,300-level, LankaBangla Securities said in its daily market analysis.
‘Investors were active on the both fence of the trading pushing the market turnover value to a new high level,’ it said.
The market is greeting the falling interest rate in the banking sector following the decision of interest rate cut on savings certificates, it said.
‘Interest rates are already on the downturn and will fall further,’ said LankaBangla quoting the Bangladesh Bank governor.
United Power Generation and Distribution Company led the turnover leaders on the day with its shares worth Tk 53.84 crore changing hands.
Bangladesh Submarine Cable Company, RAK Ceramics, Khulna Power Company, Saif Powertec, ACI Formulations, MJL Bangladesh, Western Marine Shipyard, Bangladesh Thai Aluminum and Baraka Power were among the other turnover leaders.
Bangladesh Submarine Cable Company gained the most on the day with a 9.99-per cent increase in its share price, while Intech Limited was the worst loser, shedding 16.78 per cent.

 

DULL OVERSEAS INVESTMENT - DSE delays publishing April data fearing impact

New Age - 18 May'2015 Monday


The Dhaka Stock Exchange is yet to publish overseas investors’ monthly investment data at the bourse for the month of April sensing that publication of a dissatisfactory data of that segment of investors may dampen overall market sentiment further, DSE officials said.
The DSE usually publishes overseas investment data of the immediate past month within 3-5 days of the succeeding month.
The bourse in April 5 published foreign investment data of March that showed that overseas investment at the bourse turned negative during the period for the first time in three years and seven months amid prolonged political unrest and bearish market vibe since January this year.
In March, foreign investors bought shares worth Tk 319.61 crore against their share sales of Tk 351.91 crore with the net investment standing negative at Tk 32.20 crore.
The key index of the bourse, DSEX, in the immediate next session fell by 33.85 points.
Due to a prolonged market fall the DSEX in May 4 declined to 3,959.73 points, the lowest since November 3, 2013 when the index was at 3,993.33 points.
The DSE fearing that dull overseas investment data at the bourse in April would put negative impact on the market has refrained from making the data public, a senior DSE official told New Age on Sunday.
He, however, said that the bourse would make the data public after making changes in the procedure of calculation of overseas investment as the existing process of buy-sale data did not reflect the actual position of them.

 

The Dhaka Stock Exchange is yet to publish overseas investors’ monthly investment data at the bourse for the month of April sensing that publication of a dissatisfactory data of that segment of investors may dampen overall market sentiment further, DSE officials said.
The DSE usually publishes overseas investment data of the immediate past month within 3-5 days of the succeeding month.
The bourse in April 5 published foreign investment data of March that showed that overseas investment at the bourse turned negative during the period for the first time in three years and seven months amid prolonged political unrest and bearish market vibe since January this year.
In March, foreign investors bought shares worth Tk 319.61 crore against their share sales of Tk 351.91 crore with the net investment standing negative at Tk 32.20 crore.
The key index of the bourse, DSEX, in the immediate next session fell by 33.85 points.
Due to a prolonged market fall the DSEX in May 4 declined to 3,959.73 points, the lowest since November 3, 2013 when the index was at 3,993.33 points.
The DSE fearing that dull overseas investment data at the bourse in April would put negative impact on the market has refrained from making the data public, a senior DSE official told New Age on Sunday.
He, however, said that the bourse would make the data public after making changes in the procedure of calculation of overseas investment as the existing process of buy-sale data did not reflect the actual position of them. - See more at: http://newagebd.net/120720/dse-delays-publishing-april-data-fearing-impact/#sthash.N2VhslDU.dpuf

DSE turnover crosses Tk 7b-mark - Rate cut in savings certificate spurs the rally

FE Report - 18 May'2015 Monday
Turnover value on the Dhaka Stock Exchange (DSE) surpassed Tk 7.0 billion-mark for the first time in 2015, hitting six months high due to strong buying pressure.

Daily turnover value soared to Tk 7.10 billion, registering an increase of 6.16 per cent over the previous session's Tk 6.69 billion. It was also the highest turnover since Tk 7.53 billion recorded on November 16, last year.

The market opened mixed and swung between positive and negative territory throughout the session with investors played both sides of the fence.

The benchmark index of the Dhaka Stock Exchange - DSEX - finished at 4,315.99 points, gaining 1.10 points or 0.02 per cent, after previous day's marginal correction.

The two other indices -- DS30 index, comprising blue chips, and DSES index also moved up by 6.48 points and 4.95 points respectively. DS30 closed at 1,630.19 and DSES ended at 1,051.43 points.

Interest rate cut on savings instruments coupled with budgetary expectations and further fall on bank deposit interest rate attracted more sideliners, according to brokers.

"Investors were active on the both fence of the trading pushing the market turnover value to a new high level of above Tk 7.0 billion-mark, which is the highest in last six months," said LankaBangla Securities, a stock broker, in an analysis.

The stock broker said, "Market is greeting the falling interest rate in banking sector following to the decision of interest rate cut on savings certificate".

Interest rates are already on the downturn and will fall further, said Bangladesh Bank Governor. The gap between lending and deposit rates ought to be brought down to 3.0 per cent from the existing level of 5.0 per cent, said the stock broker, quoting newspapers.

IDLC Investments, a merchant bank, said, "Market entered in sideways move, as investors were cautiously weighing investment alternatives".

"While deep discount in multiple issues attracted opportunistic investors from the sideline, mostly negative growth earnings declarations kept valuation timid, making investors to tread discreetly," said the merchant bank.

However, activity growth didn't slow down; rather surge to a six months high of Tk 7.10 riding on volatility.

"Several investors preferred to book quick profit due to the unfavorable quarterly declarations while most others went for position taking on fundamental issues," said International Leasing Securities, a stock broker. 

Banks, textile and NBFIs witnessed notable price correction, but large buy pressure in power, ceramics and engineering stocks helped the bourse to close positive, said the International Leasing.

The port city bourse Chittagong Stock Exchange (CSE) also ended marginally higher with its Selective Categories Index - CSCX - gained 21.20 points to close at 8,154.30 points.

Losers beat gainers 140 to 75, with 16 issues remaining unchanged at the port city bourse that traded 20.11 million shares and mutual fund units, turnover value of Tk 1.03 billion.

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Thursday, May 14, 2015

DSE turnover tops Tk 600cr as stocks return to positive

New Age - 14 May'2015 Thursday


Stocks returned positive on Wednesday after a day’s fall with the turnover of Dhaka Stock Exchange hitting fresh six-month high as inactive investors started participation in trading amid hopes of improved market situation.
Wednesday’s turnover at the bourse was Tk 637.90 crore, the highest after Tk 691.00 crore on November 17 last year.
Turnover at the bourse had declined drastically since the launch of new trading system in December last year due to investors’ unfamiliarity with the trading system and prolonged political unrest.
The key index of DSE increased to 4,342.66 points, adding 0.37 per cent or 16.04 points on the day.
DSEX in last seven trading sessions, including correction in the previous trading session, gained 382 points, but was yet to recover the losses investors had incurred due to 1,374 points fall since October last year till May 4 this year.
Although Wednesday’s gain was not that significant, the bourse registered a healthy turnover as investors, who were on the sidelines amid prolonged political unrest, might have started to participate in trading, market operators said.
At the same time, investors’ sector specific investment move was observed for another trading session on Wednesday as investors in last couple of trading sessions were focused mostly on Banking and mutual funds scrips, they said.
Paper and Printing, Travel and Leisure and Engineering were the highest gaining sectors on the day with 8.3 per cent, 6.98 per cent and 4.05 per cent increase in market capitalisation respectively.
DS30, the blue-chip index of the bourse, finished at 1,635.67 points, adding 0.81 per cent or 13.17 points.
The Shariah index of DSE, DSES, was up 0.91 per cent, or 9.49 points, to close at 1,048.73 points.
Of the 307 shares and mutual funds traded on the day, 171 advanced, 115 declined and 21 remained unchanged.
‘After a single day pause, the market continued the move upward with higher participation by investors,’ LankaBangla Securities said in its daily market commentary.
‘Today, turnover crossed BDT 6 billion mark. Small caps were in the buying radar today,’ it said.
United Power Generation and Distribution Company led the turnover chart on the day as its shares worth Tk 39.23 crore changed hands.
Western Marine Shipyard, National Bank, MJL Bangladesh, Khulna Power Company, Bangladesh Submarine Cable Company, BEXIMCO, IFAD Autos, SAIF Powertec and RAK Ceramics were among other turnover leaders.
Premier Cement Mills gained the most on the day as its share prices rose by 9.98 per cent, while Active Fine Chemicals was the worst loser, shedding 12.55 per cent.

TK 900CR SCHEME FOR STOCK INVESTORS - Supervision body wants release of 3rd tranche of Tk 300cr

New Age - 14 May'2015 Thursday


The supervision committee for the Tk 900-crore government refinance scheme for affected investors has issued a letter to Bangladesh Bank seeking a third tranche, Tk 300 crore, of the refinance fund to the ICB.
Bangladesh Bank on August 26, 2013 and January 18 this year released the first two installments, Tk 600 crore, of the government’s refinance scheme of Tk 900 crore to the ICB.
Bangladesh Securities and Exchange Commission executive director Saifur Rahman, also head of the supervision committee, on Wednesday issued a letter to the central bank in this regard.
An ICB official told New Age on Wednesday, ‘After the Investment Corporation of Bangladesh’s letter to Bangladesh Bank, the supervision committee on the day also sought the fund worth Tk 300 crore.’
The ICB official said that they had already disbursed Tk 467 crore in favor of 19,328 affected investors of 29 merchant banks and brokerage houses till April 30.
Applications of 2,173 investors of 12 merchant banks and brokerage houses for loans worth Tk 77.80 crore were pending with ICB that would be disbursed within May, he said.
The rest Tk 54.88 crore of Bangladesh Bank released Tk 600 crore will be released within June this year, he said.
As per the latest report, around 11 thousand small-scale investors out of the 9,53,849 affected by the 2010-11 stock market crash got interest waiver.
More than 9 lakh affected investors were yet to file applications to the loan approval committee to get the loans from the government fund due to what they say tough conditions tagged with seeking loans.
An ICB report also showed that out of the disbursed funds, investors had already repaid Tk 100.99 crore to ICB.
And ICB has already repaid Tk 104.39 crore to the Bangladesh Bank, ICB sources said.

DSE turnover crosses Tk 6b-mark - Stocks post marginal gain

FE Report - 14 May'2015 Thursday
Stocks posted marginal gain Wednesday, after previous session's mild correction, with turnover crossing Tk 6.0 billion-mark, hitting six month high thanks to increased participation of investors.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up marginally by 16.04 points or 0.37 per cent to close at 4,342.66 points after witnessing slight volatility.

The two other indices also closed in positive territory. The DS30 index, comprising blue chips moved up by 13.17 points or 0.81 per cent to close at 1,635.67 points. The DSE Shariah Index (DSES) advanced 9.49 points or 0.91 per cent to close at 1,048.73 points.

Turnover, the most important indicator of the market, crossed Tk 6.0 billion-mark on the DSE and amounted to Tk 6.37 billion, which was 15 per cent higher than the previous session's Tk 5.54 billion. It was also six months high turnover since Tk 6.91 billion recorded on November 17, last year.

"After a single day pause, market continued the move upward with higher investors' participation," said LankaBangla Securities, a stock broker, in an analysis.

"The buying spree was spurred by the government decision of interest rate cut on savings instruments coupled with budgetary expectations and lucrative pricing level," said an analyst.

"The robust moves attracted more sideliners, increasing day's turnover to a total of Tk 6.37 billion, hitting six months high", he said.

The market witnessed strong buying pressure, mostly from institutions as investors' confidence boosted by regulator's recent moves and the government high ups positive comments on stock mark, he added.

"Stocks returned to the gaining streak after marginal correction in the previous session amid growing confidence amongst the investors," said International Leasing Securities, in an analysis.

"Investors participation also increased which was evident by higher turnover. Most of the issues witnessed price appreciation amid the position taking stance from the investors, said the International Leasing.

Small caps were in the buying radar. Paper and printing, travel and leisure and engineering were the highest gaining sectors with 8.3 per cent, 6.98 per cent and 4.05 per cent respectively. Pharmaceuticals and cement gained 1.43 per cent and 0.74 per cent respectively.

All the other major sectors closed lower. Banks experienced the highest correction, losing 1.89 per cent and NBFIs lost 0.09 per cent. Telecommunication retraced by 0.93 per cent. Food and allied and power went down by 0.50 per cent and 0.15 per cent respectively.

The gainers took a modest lead over the losers as out of 307 issues traded, 171 advanced, 115 declined and 21 remained unchanged on the DSE floor.

Activities increased in the major bourse where trade and volume were up by 11.25 per cent and 6.39 per cent respectively. A total number of 0.151 million trades were executed with trading volume of 187.89 million securities.

The total market capitalisation on DSE stood at Tk 3,102.10 billion against Tk 3,098 billion in the previous session.

The port city bourse Chittagong Stock Exchange (CSE) also closed marginally higher after previous day's marginal correction with its Selective Categories Index - CSCX - gained 40.83 points to close at 8,178.05 points.

Gainers beat losers 144 to 98, with 7 issues remaining unchanged at the port city bourse that traded 21.46 million shares and mutual fund units, turnover value of Tk 588.44 million.

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Tuesday, May 12, 2015

MF INVESTMENT BB relaxes provisioning requirement for NBFIs

New Age - 12 May'2015 Tuesday


Bangladesh Bank on Monday relaxed provisioning requirement for non-bank financial institutions against their investment in mutual funds because of the losses that the NBFIs incurred due to their price slide.
The BB, in a circular, said the NBFIs would not require maintaining provision against their investment in a mutual fund if the cost price of a unit equals or goes below 85 per cent of market price or net asset value of the unit.
It said the NBFIs would have to maintain the provision, which will be calculated based on two formulas, if the unit’s cost price goes over 85 per cent of the market price or net asset value of the unit.
The first formula will consider the provision based on cost price and market price. The second formula will consider the difference between the cost price of a unit and 85 per cent of the net asset value.
The directive will be applicable for close-ended mutual funds.
For open-ended mutual funds, the BB said, the NBFIs will have to maintain provision if the unit of the fund equals or goes over 85 per cent of the net asset value of the unit.
The central bank asked the NBFIs to implement the directive immediately.
A BB official told New Age that prices of many mutual funds had slumped in recent times amid bearish trend in the capital market, resulting in losses of the NBFIs.
The central bank issued a similar directive on March 12, 2015 regarding provisioning system for scheduled banks’ investment in mutual funds, he said.
The BB issued the new circular for the NBFIs in accordance with directives set for the banks, he said.