Friday, March 27, 2015

Stocks edge up amid see-saw - Turnover crosses Tk 3b-mark again

FE Report-26 March'2015 Thursday
The market saw turnaround Wednesday with high volatility, after remaining down in the past two consecutive sessions as optimistic investors took position on lucrative stocks.

DSEX, the prime index of the Dhaka Stock Exchange (DSE) went up by 15.89 points or 0.35 per cent to close at 4,509.30 points after witnessing volatility throughout the session.

The two other indices also ended in green. The DS30 index, comprising blue chips gained 6.63 points or 0.38 per cent to close at 1,713.85 points. The DSE Shariah Index (DSES) advanced 6.02 points or 0.55 per cent to close at 1,096.77 points.

The total turnover on the DSE crossed Tk 3.0 billion-mark and amounted to Tk 3.50 billion, which was 37.3 per cent higher over the previous session's value of Tk 2.55 billion.

The investors' attention was mostly focused on pharma, cement and textile - the sectors that accounted for 25.3 per cent, 13.2 per cent and 11.3 per cent of the day's total turnover respectively.

Analysts said that a positive anticipation formed among the investors amid easing political situation and latest development in the political front centering city corporation elections.

"The softening in the political jolt helped the stock market to close in positive note amid the growing optimism," said International Leasing Securities, in its daily market analysis.

The market turnover also surged by 37.3 per cent from the previous session as investors appear to becoming optimistic and started to take position, said the International Leasing.

Price appreciation of telecommunication, power and pharma helped the market to surge the indices, it added.

LankaBangla Securities said: "The last trading session of the week was a bumpy one, but ended positively".

"There is an anticipation of opposition party taking part in upcoming city corporation election, which might stabilize the political unrest in the near future and boost the market sentiment," said the stock broker.

IDLC Investments said: "Market hovered around 4,500-mark level for third consecutive session, with uncertain price movements in majority of the stocks".

Turnover appreciated to Tk 3.50 billion, primarily backed by debutant Zaheen Spinning. The new member of textile industry also surged by 143 per cent from its issue price of Tk 10, capitalizing on impressive Q3 earnings, said the merchant bank.

Among the large-cap sectors, telecommunication gained a hefty 2.11 per cent. Power and pharmaceuticals appreciated 1.13 per cent and 0.99 per cent respectively. Both banks and food and allied sectors gained 0.08 per cent each.

The other major sectors closed in red. Cement experienced the highest loss of 0.92 per cent. NBFIs lost 0.42 per cent.

The port city bourse, Chittagong Stock Exchange (CSE) also closed in green with its Selective Categories Index - CSCX - gained 26.18 points to close at 8,338.35 points.

Losers beat gainers 113 to 85, with 25 issues remaining unchanged at the port city bourse that traded 8.83 million shares and mutual fund units, turnover value of Tk 611.51 million.

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NBFIs barred from sacking CEOs sans BB permission - Amended rules provide deputing administrator

FE Report-26 March'2015 Thursday
A changed rule bars non-banking financial institutions (NBFIs) from sacking their CEOs sans prior permission of the central bank.

Moreover, the Bangladesh Bank (BB) reserves the right to appoint an administrator to stand in the vacancy in CEO post of any of the NBFIs.     

To this effect, the BB has amended its rules relating to appointment and removal of the chief executive officers (CEOs) of non-banks, like commercial banks.

Under the amended rules, the authorities of NBFIs cannot force the CEOs to submit their resignation or cancel their appointment contracts without prior approval from the BB.

The CEOs will have to inform the chairmen of the boards of directors of the respective NBFIs about the valid grounds for resignation a month before if they want to break loose from the job contracts voluntarily before the expiry of the agreement, the state bank said in a circular Wednesday.

As per the amendment, a copy of the notice will have to be submitted to the central bank at the same time.

On the other hand, the same process will have to be followed by the boards of directors of the NBFIs if they want to terminate appointment contracts of the CEOs.

In case of the post of a CEO falling vacant, the NBFI concerned has been authorised to appoint an immediate subordinate officer as acting CEO for maximum three months and inform the BB thereof.

The state bank reserves its right to appoint an administrator to the NBFI if the management failed to hire CEO within the stipulated timeframe.

The central bank has made the latest move against the backdrop of seeking job protection by the CEOs of NBFIs so that their boards of directors could not remove or suspend them without concurrence of the BB.

Earlier on March 3, Asad Khan, chairman of Bangladesh Leasing and Finance Companies Association (BLFCA), sough their job protection as in commercial banks to ensure good governance in the sector.

Mr Khan, however, welcomed BB's latest move as he thinks it will help in compliance requirements of the central bank as well as good governance in the NBFIs.

"We're thankful to the BB for taking such initiative," he told the FE.

Earlier on December 23 last year, the central bank amended its rules on appointment and removal of CEOs of commercial banks, prohibiting their sacking sans its prior permission.

Besides, the central bank has also made it mandatory that the NBFIs from now on have to take prior approval from the BB before appointing advisers and consultants.

For such appointments, the justification of the post of adviser and consultant, responsibilities or terms of reference, complete resume of the persons, terms of appointment and copy of board's approval must be submitted to the BB.

"The NBFIs earlier used to inform the central bank after appointing the advisers and consultants," a BB senior official told the FE.

He also said the central bank has amended the rules relating to appointment and removal of the CEOs of the NBFIs aiming to establish good governance in the sector.

Currently, 31 NBFIs are operating across the country.

    siddique.islam@gmail.com

Wednesday, March 25, 2015

Mock test on IPO application process begins

FE Report - 25 March'2015 Wednesday

Dhaka Stock Exchange (DSE) has requested the respective stock brokers and merchant bankers to participate in the mock test through sending dummy files as per prescribed format applicable for Tosrifa Industries for smooth and successful transmission of data of public issue application.

The mock test of data transmission software for the new public issue application process developed by DSE began Tuesday and ends today (Wednesday), DSE sources said.

The software is available in the following link: http://www.dsebd.org/IPO-Data-Transmission-Software.php, said the DSE web post.

The user name of the respective stock brokers of DSE and merchant bankers as well as user manual of the software are available in the same link, said the web post.

The securities regulator - Bangladesh Securities & Exchange Commission (BSEC) made the submission of application for initial public offering (IPO) shares through merchant banks and brokerage firms mandatory from April 1 this year instead of applying through banks.

babulfexpress@gmail.com

C&A Textiles promoted

FE Report - 25 March'2015 Wednesday
C&A Textiles was placed to 'A' category from existing "N" category with effect from today (Wednesday) as the company reported disbursement of 11 per cent dividend, officials said.

"The company will be placed in 'A' category from existing 'N' category with effect from March 25 as the company has reported disbursement of 11 per cent stock dividend for the year ended on June 30, 2014," said a statement posted on Dhaka Stock Exchange (DSE) website Tuesday.

The company has also informed that it has credited the bonus shares for the year ended on June 30, 2014 to the respective shareholders beneficiary owner (BO) account on March 23, 2015.

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Zaheen Spinning makes debut today

FE Report - 25 March'2015 Wednesday
Share trading of Zaheen Spinning Ltd (ZSL) will commence on Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) today (Wednesday) under 'N' category, officials said.

DSE trading code for Zaheen Spinning is 'ZAHEENSPIN' and DSE company code is 17467 while CSE scrip id is 12055 and scrip code is 'ZAHEENSPIN'.

Zaheen Spinning, the Narayangonj based cotton yarn manufacturer, however, obtained listing approval from DSE and CSE on February 19.

Using the fixed price method, the yarn manufacturer floated 12 million ordinary shares of Tk 10 each and raised a fund worth Tk 120 million from the public.

IPO subscription of the company took place December 28, 2014 to January 5, 2015 for resident Bangladeshi and it was continued till January 13 for non-resident Bangladeshi (NRB).

The company's IPO oversubscribed around 74 times as the company received around Tk 8.87 billion against public offer of Tk 120 million.

The securities regulator - Bangladesh Securities & Exchange Commission (BSEC) approved the IPO proposal of Zaheen Spinning on October 29, last year.

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DSEX dips below 4,500-mark again Turnover drops to Tk 2.55 billion on DSE

FE Report - 25 March'2015 Wednesday
Stocks edged lower for the second sessions in a row Tuesday with key index of the prime bourse dipping below 4,500-mark as ongoing political instability is taking its toll on the capital market.

The market opened with a positive note like previous session, but could not sustain as the session progressed. DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down by 13.15 points or 0.29 per cent to close at 4,493.40 points.

The two other indices also closed in the red. The DS30 index, comprising blue chips lost 4.34 points or 0.25 per cent to close at 1,707.22 points. The DSE Shariah Index (DSES) shed 5.61 points or 0.51 per cent to close at 1,090.75 points.

The total turnover on the DSE came down below Tk 3.0 billion-mark again and amounted to Tk 2.55 billion, which was 18.78 per cent lower over the previous session's value of Tk 3.14 billion.

The investors' attention was mostly focused on pharma, power and banks - the sectors that accounted for 24.8 per cent, 13.4 per cent and 13.2 per cent of the day's total turnover respectively.

"Market went down slightly amid the lack of confidence and specific direction among investors," said LankaBangla Securities, in its daily market analysis.

"The ongoing political instability in the country is taking its toll on the capital market as investors are getting more and more concerned about investing in equity market," said the stock broker.

IDLC Investments said: "Demoralized investors cashed further out of the market from most of the stocks".

This session's dip turned down market once again below 4,500-mark 'psychological' threshold, spraying depression on investment sentiment, said the merchant bank.

In this hopeless scenario, most of the investment activities centered on a few stocks, as evidenced by the fact that the day's top ten most active stocks constituted 40 per cent of total turnover, it added.

International Leasing Securities said: "Stock ended lower note amidst shaky participation from the investors. A daylong battle between optimist and pessimist investors was observed but losers took a lead over the gainers at the end of the session".

Investors' attention was mostly grabbed by large-cap stocks. However, price correction in several issues from financial sectors, power and engineering sectors contributed in fall of indices, it said.

The large-cap sectors showed mixed performance. Pharmaceuticals advanced by 0.60 per cent. Telecommunication and cement appreciated by skimpy 0.29 per cent and 0.22 per cent respectively.

NBFIs went down by 1.41 per cent posting the highest loss of the session. Power retraced by 0.65 per cent. Food and allied and banks both closed flat in red with losing 0.07 per cent and 0.05 per cent respectively.

The port city bourse, Chittagong Stock Exchange (CSE) also closed in the red with its Selective Categories Index - CSCX - lost 33.66 points to close at 8,312.16 points.

Losers beat gainers 143 to 54, with 24 issues remaining unchanged at the port city bourse that traded 8.44 million shares and mutual fund units, turnover value of Tk 236.92 million.

 babulfexpress@gmail.com

Monday, March 23, 2015

BSRM goes for modernisation, invests Tk 7 billion

FE Report-23 March'2015 Monday
Pankaj Dastider
CHITTAGONG, Mar 22: BSRM Steel Re-rolling Mills looks to double its production by transforming the old unit at Nasirabad into a new one soon to cater to the growing local demand for steel.

The transformation has already been completed with setting up of completely new machinery and the new plant is going to produce quality steel by the end of this June, sources have said.

BSRM (Bangladesh Steel Re-rolling Mills) has invested around Tk 7.0 billion in the Nasirabad factory. Out of the amount, Tk 6.0 billion has been spent for import of modern and sophisticated machinery, the sources have said. About 800 people will get jobs at the factory.

"We have already dismantled our machinery of the 0.15 million (1.5 lakh) tonne annual production capacity BSRM Steel Mills at Nasirabad and replaced those with the new machinery to enhance the factory's annual capacity to 0.70 million tonnes," Executive Director of BSRM Tapan Sengupta said on Sunday.

He said that the BSRM's current annual production capacity is about .80 million tonnes which will stand at around 1.5 million tonnes by the middle of next calendar year.

The country is ready to get the momentum of much-anticipated development in terms of infrastructure and housing facilities. So the steel industry in the country is headed for a revolution, he mentioned.

Annual demand for steel in the country hovers around 3.5 million tonnes but most of the country's 300 steel mills are running with old technology and are using the plates of scrap ships.

Some 10 mills including the BSRM produce steel using modern technology and fulfil 30 per cent of the country's total production while the 70 per cent steel is being produced in the country by smaller mills.

Currently, the larger steel factories have started investing vast amounts of money in their plants. BSRM undertook the venture to modernise its steel plant in the city's Nasirabad Industrial Area as part of that move.

Mr Sengupta said that demand for quality steel in the country is increasing day by day, that is why the larger steel plants like Abul Khair Steel, GPH and BSRM are making fresh investments in the sector.

"We made vast investment in one of our old plants and this transformation takes place because we will have to survive in the steel market. Unless we modernise our factory we will not be able to exist," he said.

He said that they have also sought duty exemption which has already been recommended by the Bangladesh Tariff Commission after scrutiny.

Three other major steel factories in the country were earlier exempted other extra charges and duty except 5.0 per cent import duty on import of raw materials by government agencies concerned to encourage local investment.

The BSRM earned post-tax profit of Tk 1996 million in the calendar year 2013. The management hopes that the money it has invested in the Nasirabad Steel Plant will be realised in the next six years.

     pankajdastider@gmail.com

DSEX crosses 4,500-mark again

FE Report-23 March'2015 Monday
Stocks ended higher for the second consecutive session Sunday with improved activities as most of the investors went for buying spree on large-cap stocks amid optimism.

The investors went for buying binge from the very beginning of the trading session defying prevailing political unrest and the positive vibe sustained throughout the session.

At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE) crossed the 4,500-mark again and ended at 4,533.21 points, surging 65.19 points or 1.45 per cent.

The two other indices also closed higher. The DS30 index, comprising blue chips soared 34.39 points or 2.03 per cent to close at 1,721.06 points. The DSE Shariah Index (DSES) rose 23.26 points or 2.15 per cent to close at 1,104.75 points.

The total turnover on the DSE crossed Tk 2.50 billion-mark and amounted to Tk 2.68 billion, registering an increase of 60.96 per cent over the previous session's two and a half months lowest value of Tk 1.66 billion.

The investors' attention was mostly focused on pharma, engineering and power - the sectors that accounted for 19.2 per cent, 16.5 per cent and 14.6 per cent of the day's total turnover respectively.

"Market predictably rebounded with strengthening possibilities of major opposition's taking part in city corporation elections and expected consequent withdrawal of economy hurting blockades and strikes," said IDLC Investments, in its daily market analysis.

"As the positive anticipation formed over the weekend, participants were upbeat from the maiden moment and quickly started taking positions. Resultantly, index soared with another push in later hours, said the merchant bank.

However, it hasn't attracted substantial turnover, yet, which amounted to Tk 2.68 billion after the day end.

"The market ended in positive note for the second running sessions amidst increased optimism from the investors," said International Leasing Securities.

"Most of the issues witnessed price appreciation as recent bearish spell naturally created some scope for undervaluation, upon which investors might have started to take position," said the International Leasing.

Meanwhile, price surge in several large-cap stocks mainly from cement and power sectors helped to raise the indices, it added.

LankaBangla Securities said: "Market started off the week very positively, following a steep correction in last week. The benchmark DSEX index started moving up from the very beginning of the trading session and closed at the day's high".

"From this oversold position, market have become in buying range after hitting 4,400 odd-level last week," said the stock broker.

Switzerland's Holcim and France's Lafarge have agreed new terms for their plan to create the world's biggest cement company. Following this news, Lafarge Surma Cement gained 7.33 per cent alone and cement sector emerged as top gaining sector with 5.73 per cent gain.

Fuel and power also gained 2.60 per cent. Pharmaceuticals and telecommunication went up by 1.67 per cent and 0.58 per cent respectively. Banks advanced by 0.31 per cent. Food and allied sector closed flat in red with losing 0.04 per cent while NBFIs closed flat with no movement.

The gainers took a strong lead over the losers as out of 310 issues traded, 203 advanced, 71 declined and 36 remained unchanged on the DSE floor.

Activities increased in the major bourse where trade and volume were up by 55.44 per cent and 51.50 per cent respectively. A total number of 0.081 million trades were executed with trading volume of 60.70 million securities.

The market capitalisation on DSE stood at Tk 3,142.89 billion against Tk 3,108.98 billion in the previous session.

ACI Limited was the day's top turnover chart with shares worth Tk 182.68 million changing hands followed by Lafarge Surma, SPCL, ACI Formulations and IFAD Autos.

The port city bourse, Chittagong Stock Exchange (CSE) also closed in positive zone with its Selective Categories Index - CSCX - gained 76.21 points to close at 8,376.30 points.

Gainers beat losers 142 to 61, with 34 issues remaining unchanged at the port city bourse that traded 5.91 million shares and mutual fund units, turnover value of Tk 229.01 million.

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Merchant banks, brokerage firms seek more initiatives to stabilise stock mkt

FE Report-23 March'2015 Monday
Merchant banks and brokerage firms Sunday sought more initiatives to stabilise the capital market along with increasing the turnover value, officials said.

The representatives of merchant banks and brokerage firms made the plea at a meeting held at the office of the state-run Investment Corporation of Bangladesh (ICB).

At the meeting chaired by ICB managing director Md. Fayekuzzaman, the representatives also proposed for a permanent re-financing fund so that merchant banks and brokerage firms can take loans with minimum interest.

Mohammad Saifur Rahman, an executive director of the securities regulator, also attended the meeting.

According to Mr. Fayekuzzaman, the representatives stressed the need for possible ways to strengthen the capital base of merchant banks those are facing a dismal situation.

"The representatives have sought soft implementation of rules to revive the capital market by creating breathing space for the banks who are not in a position of purchasing shares," Fayekuzzaman said.

According to him, the merchant bankers told the meeting that the investors who availed the re-financing scheme facility have been benefited.

"Merchant bankers have also said that they would try to facilitate the affected investors who were out of the capital market re-financing scheme," Fayekuzzaman said.

ICB managing director told the meeting that the bank's dividend declaration was comparatively better in 2015 compared to the declarations made in 2014.

"We will discuss the issues with the securities regulator," he added.

The issue of allowing IPOs (initial public offerings) with reasonable premiums was also discussed at Sunday's meeting.

    mufazzal.fe@gmail.com

Stocks begin week with gains

FE Report-23 March'2015 Monday

Stocks opened the week on a positive note and continued to gain for a second day yesterday.
DSEX, the benchmark general index of Dhaka Stock Exchange, finished the day at 4,533.21 points, after gaining 65.19 points or 1.45 percent.
The market was boosted by a possibility that candidates backed by the major opposition political parties may take part in the city corporation elections and an expected withdrawal of the blockade, said IDLC Investments.
As the positive anticipation formed over the weekend, the participants were upbeat from the beginning and started taking positions, the merchant bank said.
The key index started moving up from the very beginning of the trading session and closed at the day's high, said LankaBangla Securities.
Bangladesh Bank purchased dollars worth $51 crore in the first 19 days of this month, as most of the scheduled banks are now holding a good amount of the greenback amid stagnant business situation in the country, it said.

The day's turnover jumped up 61 percent to Tk 268.19 crore from the previous day.
On the premier bourse, almost all the major sectors gained in market capitalisation with banks increasing 0.31 percent, cement 5.73 percent, fuel and power 2.6 percent, pharma 1.67 percent and textile 1.59 percent.
Gainers beat the losers, as 203 scrips advanced, 71 declined and 36 remained unchanged on the DSE floor.
ACI dominated the turnover chart with its transaction of 3.83 lakh shares worth Tk 18.26 crore, followed by Lafarge Surma Cement, Shahjibazar Power Company, ACI Formulation and Ifad Autos.
ACI Formulation was the day's best performer, advancing by 9.42 percent, while Reliance Insurance was the worst loser, slumping by 19.78 percent.
Chittagong stocks also rose yesterday with the bourse's selective category index, CSCX, gaining 76.21 points to close at 8,376.3 points.
Of the traded issues, 142 gained and 61 declined with 34 securities remaining unchanged on the port city bourse.
Some 59.11 lakh shares and mutual fund units were traded on the Chittagong Stock Exchange, generating a turnover of Tk 22.90 crore.



Tuesday, March 17, 2015

Investors angry as stocks dive to eight-month low

Daily Star - 17 May'2015 Tuesday

The benchmark index plunged to an eight-month low as stocks slumped for the fourth session yesterday, prompting a group of investors to protest the freefall on the streets in Dhaka.

 

The investors demonstrated from 12:00 noon to 2:30pm in front of the Dhaka bourse, and later submitted a memorandum to Bangladesh Securities and Exchange Commission with 19-point demands.
DSEX, the key general index of Dhaka Stock Exchange, closed the day at 4,477.99 points, after falling 58.39 points, or 1.28 percent.

The investors' demands include steps to increase banks' investment exposure to the stockmarket, interest waiver against share credit, creating a Tk 15,000 crore fund for share credit at 5 percent simple interest and formulation and implementation of the share buy-back law.
“A negative trend has dominated the market for a long time. We request the regulator to take steps to implement our recommendations,” said Mizanur Rashid Chowdhury, president of Biniogkari Oikya Parishad, a loose grouping of share investors.

The index broke its nearest support level by falling below the psychological level of 4,500 points, LankaBangla Securities said in its market analysis.
The index is falling due to a lack of confidence among market makers, the stockbroker said.

The market wiped out last eight months' gain in the recent downward trend, as the selling pressure continued.
The cement sector took the biggest hit with a 3.6 percent fall in market capitalisation, followed by fuel and power at 2.38 percent, banks 1.86 percent and textile 1.33 percent.
However, some multinational and cash cow stocks remained safe from the market hit as investors sought those to park funds in.

Losers outnumbered gainers as 229 declined, 53 advanced and 24 scrips remained unchanged on the DSE.
The day's turnover however rose 14.2 percent from the previous day to Tk 289.72 crore. Grameenphone dominated the turnover chart with transactions of 7.31 lakh shares worth Tk 24.75 crore, followed by Shahjibazar Power Company, Ifad Autos, Summit Alliance Port and ACI.

Reckitt Benckiser was the day's best performer, advancing 5.73 percent, while Singer Bangladesh was the worst loser, slumping by 20.36 percent. Chittagong stocks also declined yesterday, with the bourse's selective category index, CSCX, shedding 73.5 points to close at 8,311.84 points.

Losers beat gainers 166 to 45, with 20 securities remaining unchanged on the port city bourse.
Some 64.12 lakh shares and mutual fund units traded on the Chittagong Stock Exchange, generating a turnover of Tk 22.63 crore.


Stocks sink below 4,500 points on political worries

New Age - 17 May'2015 Tuesday


Dhaka stocks fell sharply on Monday, fourth session in a row, with the key index of Dhaka Stock Exchange, DSEX, falling below 4,500 points after seven-and-a-half month as investors became depressed about the market prospect amid dull business atmosphere.
DSEX on the day fell by 1.28 per cent, or 58.39 points, to finish at 4,477.99 points, the lowest after 4,472.17 points in September last year.
Prices of more than two-third traded stocks fell on the day. Out of the day’s traded 306 shares and mutual funds, 53 advanced, 229 declined and 24 remained unchanged.
Market operators said that investors, depressed about the business outlook due to the ongoing political situation, opted to sell-off shares with a view to avoid further losses.
Besides, a Dhaka court on Monday asked Bangladesh Nationalist Party chairperson Khaleda Zia to comply with the High Court order, currently pending, over a petition that she had filed regarding Barapukuria coal mine graft case before the court on April 13 which might be the investors’ another consideration on the day, operators said.
Meanwhile, a section of investors on the day submitted a memorandum to Bangladesh Securities and Exchange Commission chairman M Khairul Hossain seeking regulatory steps to stabilize the market situation.
DS30, the blue-chip index of the bourse, closed at 1,691.50 points, shedding 1.04 per cent or 17.89 points.
The Shariah index of DSE, DSES, dropped 1.25 per cent, or 13.89 points, to finish at 1,090.99 points on Monday.
‘The market wiped out last 8 months’ gain in the recent downtrend, while lost another 58 points from DESX, today,’ IDLC Investments said in its daily market commentary.
‘The prime index dipped below 4,500 points level to close at 148 sessions low of 4,478 points,’ it said.
‘Sell pressure was observed in most of the scrips irrespective of sector or Cap class, with exception to few MNC stocks like Reckitt Benckiser, Grameenphone, Berger Paints Bangladesh, as some investors attempted to park money in them,’ it said.
‘Index is hitting its low on lack of confidence among the market makers,’ LankaBangla Securities said on Monday.
‘Today, Banks, Cement and other major large cap sectors dragged the market down,’ it said.
‘Banking sector declined by 1.86 per cent while Cement, Fuel & Power and Textile sectors decreased by 3.6 per cent, 2.38 per cent and 1.33 per cent respectively,’ LankaBangla said.
Grameenphone led the turnover chart on the day with its shares worth Tk 24.75 crore changing hands.
Shahjibazar Power Company, IFAD Autos, Summit Alliance Port, ACI Limited, Shasha Denims, Lafarge Surma Cement, One Bank, MJL Bangladesh and Singer Bangladesh were among other turnover leaders.
Reckitt Benckiser gained the most on the day as its share prices rose by 6.19 per cent, while Singer Bangladesh was the worst loser of the day, shedding 20.18 per cent

 

Writing off portion of loan given to RAK Pharma - RAK Ceramic urged to revise financial statements

FE Report - 17 May'2015 Tuesday
Rahman Rahman Huq, Chartered Accountant firm of RAK Ceramic, has requested the company to withdraw and revise its financial statements for the year ended on December 31, 2014, by addressing the financial impact regarding writing off portion of the loan given to RAK Pharmaceuticals and unrealised interest, officials said.


Dhaka Stock Exchange (DSE) Monday made the disclosure public on its official website.

In its request, Rahman Rahman Huq also stated that there are no grounds to restate the consolidated financial statements of the company for the year ended on December 31, 2014.

The request came from the chartered accountant firm of RAK Ceramic came following its board's decision regarding the loan disbursed to subsidiary company RAK Pharmaceuticals.

According to previous disclosure posted on DSE website on February 26, 2015, RAK Ceramic's board approved the offer of RAK Pharmaceuticals to settle the long outstanding loan given by its parent Company subject to the approval of the shareholders,

The RAK Ceramic also informed the DSE that, subject to the approval of the shareholders, the company's board also decided to write off the balance irrecoverable loan worth above 253.98 million and unrealised interest worth above Tk 334.66 million totaling to over Tk 588.64 million as Investment Loss and Interest Loss.

Wang declined to comment on CICC's plan to appoint a new chief executive officer or sell shares in Hong Kong this year.

The bank's former CEO Levin Zhu resigned in October.

    mufazzal.fe@gmail.com

Zaheen Spinning gets listing approval

FE Report - 17 May'2015 Tuesday
Zaheen Spinning Limited (ZSL), a Narayangonj based cotton yarn manufacturer has obtained listing approval from Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) recently, officials said.

Trading date of Zaheen Spinning under 'N' category will be fixed after transferring shares to respective beneficiary owners' (BO) accounts, said a DSE official.

Using the fixed price method, the yarn manufacturer floated 12 million ordinary shares of Tk 10 each and raised a fund worth Tk 120 million from public.

The IPO subscription of the company took place December 28, 2014 to January 5, 2015 for resident Bangladeshi and it was continued till January 13, 2015 for non-resident Bangladeshi (NRB).

IPO subscription of the company was oversubscribed around 74 times. The company received around Tk 8.87 billion against public offer of Tk 120 million.

The securities regulator - Bangladesh Securities & Exchange Commission (BSEC) approved the IPO proposal of Zaheen Spinning on October 29, last year.

The fund raised through the public offerings is being used for setting up a new plant, purchase machinery and to meet the expenses of IPO proceedings, according to the company's IPO prospectus.

    babulfexpress@gmail.com

DSEX dips below 4,500-mark - Investors form human chain, place 19-point demand

FE Report - 17 May'2015 Tuesday
Stock extended their bearish spell for the four consecutive sessions Monday with prime index of the major bourse dipping below 4,500-mark after eight months as deepening political strife continued to hurt investors.

Meanwhile, a group of investors under the banner of Bangladesh Capital Market Investors' Unity formed a human chain in front of the Dhaka Stock Exchange (DSE) building in protest against continuous fall of share prices.

They also placed 19-point charter of demands to the Bangladesh Securities & Exchange Commission (BSEC), including increasing the banks' investments ceiling in stocks to bring back stability in the capital market.

The market opened with a downturn which sustained throughout the session as most investors were on selling mood in fear of further share price fall.

At the end of the session, DSEX, the prime index of the DSE dipped below the 'psychological' threshold of 4,500-mark again and ended at 4,477.99 points, shedding 58.39 points or 1.28 per cent.

The two other indices also saw steep decline. The DS30 index, comprising blue chips lost 17.89 points or 1.04 per cent to close at 1,691.50 points. The DSE Shariah Index (DSES) shed 13.89 points or 1.25 per cent to close at 1,090.99 points.

Strong selling pressure helped trading activities edge higher and amounted to Tk 2.90 billion, registering an increase of 14.62 per cent over the previous session's value of Tk 2.53 billion.

The investors' attention was mostly focused on power, pharma and engineering - the sectors that accounted for 17.4 per cent, 14.6 per cent and 14.5 per cent of the day's total turnover respectively.

"Investors' pessimistic sentiment about the stock market accelerated as the depressed political scenario exhibits no sign of recovery," said International Leasing Securities, in its daily market analysis.

The morning sell pressure, driven by panicky sentiment sustained till the end of the session, said the International Leasing. 

LankaBangla Securities said: "Index is hitting its lower low on lack of confidence among the market makers and broke its nearest support level by breaching 'psychological' level of 4,500-mark".

Bank, cement and other major large-cap sectors dragged the market down. Banking sector declined by 1.86 per cent while cement, power and textile sector decreased by 3.6 per cent, 2.38 per cent and 1.33 per cent respectively.

However, few multinational companies and cash cow stocks remained secured from the market hit as investors found those stocks worth buying, said the stock broker.

IDLC Investments said: "The market wiped out last eight months' gain in the recent downtrend, while lost another 58 points from DESX".

Sell pressure was observed in most of the issues irrespective of sector or cap class, with exception to few multinational companies stocks like Reckitt Benckiser, GP, Berger Paints as some investors attempt to park money in them, said the merchant bank.

Among the large-cap sectors, telecommunication registered a noteworthy gain of 2.69 per cent. Food and allied sector also advanced 0.55 per cent.

All the other major sectors closed lower. Cement retraced by a hefty 3.60 per cent. Power went down by 2.38 per cent. In the financial sectors - both banks and NBFIs closed lower by 1.86 per cent and 2.34 per cent respectively. Pharmaceuticals lost 0.43 per cent.

The losers took a strong lead over the gainers as out of 306 issues traded, 229 declined and 53 advanced while 24 remained unchanged on the DSE floor.

Activities increased in the major bourse where volume and trade were up by 17.07 per cent and 15.33 per cent respectively. A total number of 0.082 million trades were executed with trading volume of 61.29 million securities.

The market capitalisation on DSE stood at Tk 3,123.30 billion against Tk 3,141.32 billion in the previous session.

GP was the day's top turnover chart with shares worth Tk 247.54 million changing hands followed by SPCL, IFAD Autos, Summit Alliance Port and ACI.

Reckitt Benckiser was the day's top gainer, posting a rise of 5.73 per cent while Singer BD was the worst loser, plunging by 20.36 per cent following its price adjustment after record date.

The port city bourse, Chittagong Stock Exchange (CSE) also saw steep decline with its Selective Categories Index - CSCX - lost 73.5 points to close at 8,311.84 points.

Losers beat gainers 166 to 45, with 20 issues remaining unchanged at the port city bourse that traded 6.41 million shares and mutual fund units, turnover value of Tk 226.36 million.

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Performance of new IPOs - Post-listing periods see fall in dividend payment

FE Report - 17 May'2015 Tuesday
Mohammad Mufazzal
Many of the companies that entered the capital market during 2011 to 2013 declared lower post-listing dividends than what they had offered before going public.

The audit reports of the companies as in their prospectuses and the available information about them on the Dhaka Stock Exchange (DSE) website indicate a downward trend in their post-listing dividend payment.

Some of the companies, however, cited political unrest and other obstacles as the reasons for their failure to offer dividend at satisfactory rates.

Experts said the companies' paid-up capital increased on their going public but not their earnings in one or two years.

"That's why the companies' dividends decline after their listing with the stock exchanges. On the other hand, some companies may have the tendency of showing inflated earnings before going public to get good premiums on their face value," said Faruq Ahmad Siddiqi, former chairman of Bangladesh Securities and Exchange Commission (BSEC).

Deshbandhu Polymer went public in 2011. It issued 15 per cent stock dividend in the year. But later in 2012 the company gave 5.0 per cent cash dividend. In 2012 and 2013 the percentages were 5.0 per cent and 10 per cent respectively.

Barkatullah Electrodynamics went public in 2011. It gave 20 per cent stock dividend in 2011 and 21 per cent stock dividend in 2012. In 2013 the company's dividend came down to 5 per cent and in 2014 it hit 17 per cent.

Rangpur Dairy & Food Products offered 12 per cent bonus dividends in 2011, the year it had gone public. Later in both 2012 and 2013 the company's dividend dropped to 10 per cent.

In 2012 the Aamra Technologies went public. Earlier it gave 109 per cent stock dividend in 2008, 74 per cent cash dividend in 2009 and 10 per cent cash dividend in 2010. Later in 2012 and 2013 the company's dividend dropped to 20 per cent and 10 per cent respectively.

Md. Anamul Haque, company secretary of Aamra Technologies, said it was not true that the company went public showing an inflated growth which declined afterwards.

"Business competition in the IT sector has intensified. Despite having good corporate reputation our company has failed to do business up to the expectation because of the adverse situation," Mr. Haque added.

Envoy Textiles offered 5.0 per cent bonus in 2012, the year it got listed with the stock exchange. Later in both 2013 and 2014 the company gave only 3.0 per cent dividend.

The company, however, recommended 12 per cent cash dividend and 3.0 per cent stock dividend for the year ended on September 30, 2014.

In 2013 Summit Purbanchol Power Company entered the stock market. Before that it issued 30 per cent bonus

in 2012. But in 2013 the company gave only 10 per cent bonus dividend. Argon Denims issued 20 per cent stock dividend in 2012. In 2013, the year it went public, the company's  board of directors recommended 15 per cent stock dividend and 6.0 per cent cash dividend.

Golden Harvest Agro Industries issued 20 per cent bonus in 2012. In 2013 it entered the stock market. In that year the company gave only 5.0 per cent stock dividend. However, the company's board of directors recommended 10 per cent cash dividend for the year ended on June 30, 2014.

Company Secretary of Golden Harvest Agro Industries Nirmol Chandra Sardar said: "We have expanded our business by using the IPO fund but the returns are not yet satisfactory as distribution of products was hampered due to the ongoing adverse situation. But our company has achieved its certain level of growth."

Global Heavy Chemicals was listed on the local stock exchanges in 2013. The company gave 12.50 per cent cash dividend for the year ended on December 31, 2011. But in 2012, 2013 and 2014 the company declared no dividend for the shareholders. Appollo Ispat Complex also entered the stock market in 2013. The company issued 15 per cent stock dividend for the year ended on June 30, 2014.

SK Abul Hassan, company secretary of Appollo Ispat Complex, said their business plan was being implemented as projected. "But the ongoing obstacle may hamper our dividend payment," Mr Hassan said.

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Thursday, March 12, 2015

Stocks slip back into red amid selling frenzy

Daily Star - 12 March'2014 Thursday

Stocks returned to the red yesterday, as bleak political outlook and profit-booking forced weary investors to sell off shares.
DSEX, the benchmark general index of Dhaka Stock Exchange, dropped 63.57 points, or 1.36 percent, to finish the day at 4,585.72.
Massive selling pressure and impatience roiled the market, after Tuesday's small gain, IDLC Investments said in its market analysis.
After a single-day pause, the nationwide strike resumed, making investors nervous about the market outlook, said LankaBangla Securities, a leading stockbroker.
However, imminent annual declarations from some manufacturing stocks enticed investors to take positions, it added.
Among major news, inflation rose to 6.14 percent in February from 6.04 percent in January after decreasing continuously for seven months.
Banking stocks took the biggest hit yesterday, as the sector slid 3 percent, followed by the engineering sector that fell 2 percent.

The food and allied sector however managed to move forward 2.3 percent.
Amid the selling frenzy, the day's turnover rose 21.6 percent to Tk 310.28 crore from the previous the day.
A total of 0.95 lakh trades were executed, with 6.21 crore shares and mutual fund units changing hands on the premier bourse.
Losers beat gainers, as 234 declined, 43 advanced and 31 remained unchanged on the DSE.
Shasha Denims dominated the turnover chart with 61.91 lakh shares worth Tk 24.06 crore changing hands, followed by Shahjibazar Power Company, Ifad Autos, Lafarge Surma Cement, and ACI.
Northern Jute Manufacturing was the day's best performer, advancing 9.17 percent, while Bank Asia was the worst loser, slumping 13.95 percent.
Chittagong stocks also fell yesterday with the bourse's selective category index, CSCX, shedding 105.07 points to close at 8,509.08 points.
Losers beat gainers 174 to 30, with 30 securities remaining unchanged on the port city bourse that traded 75.88 lakh shares and mutual fund units worth Tk 28.28 crore in turnover.


Key index dips below 4,600-mark

FE Report - 12 March'2014 Thursday
Stocks witnessed a major setback Wednesday after two session's marginal gain with key index of the major bourse dipping below 4,600-mark as investors went for panic-sell amid deepening political unrest in the country.

The market opened with a negative note which sustained throughout the session. At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE) dipped below the 4,600-mark after more than six months and ended at 4,585.72 points, shedding 63.57 points or 1.36 per cent.

The two other indices also closed in red. The DS30 index, comprising blue chips plunged 13.36 points or 0.77 per cent to close at 1,716.54 points. The DSE Shariah Index (DSES) shed 9.76 points or 0.87 per cent to close at 1,105.99 points.

However, turnover on the DSE crossed Tk 3.0 billion-mark, driven by panic-sell and amounted to Tk 3.10 billion, registering an increase of 21.56 per cent over the previous session's value of Tk 2.55 billion.

The investors' attention was mostly focused on power, pharma and engineering - the sectors that accounted for 18.9 per cent, 14.4 per cent and 14.2 per cent of the day's total turnover respectively.

"The stock market witnessed a major setback amid the panicky sell pressure from the investors," said International Leasing Securities in an analysis.

"Investors went for the short-term profit booking strategy as persistent gloomy micro-economic and political outlook deepening the cautiousness," said the International Leasing.

The investors might also have reacted to the revised downward gross domestic product (GDP) growth forecast by International Monetary Fund (IMF) to 6.0 per cent in Bangladesh, said the International Leasing.

LankaBangla Securities said: "After as single day pause, opposition party continued the nationwide strike which made investors worried about market outlook".

Banking stocks took the highest hit. However, imminent annual declaration of some manufacturing stocks enticed investors to take position, said the stock broker.

IDLC Investments said: "Impatience shredded the market, after previous day's small gain. Investors delivered a knee-jerk reaction to last session's positive close, deciding to book the gain".

Among the major sectors, food and allied sector gained 2.05 per cent. Pharmaceuticals closed flat in green with 0.03 per cent gain. The other major sectors closed lower - banks registered the highest loss of the session of 2.96 per cent.

Fuel and power also went down by a significant 1.92 per cent. NBFIs closed lower by 1.37 per cent. Telecommunication and cement closed in red losing 0.49 per cent and 0.37 per cent respectively.

The losers took a strong lead over the gainers as out of 308 issues traded, 234 declined and 43 advanced while 32 remained unchanged on the DSE floor.

Activities increased in the major bourse where trade and volume were up by 19.64 per cent and 9.68 per cent respectively. A total number of 0.095 million trades were executed with trading volume of 62.17 million securities.

The market capitalisation on DSE stood at Tk 3,146.27 billion against Tk 3,171.04 billion in the previous session.

Shasha Denims was the day's top turnover chart with shares worth Tk 240.63 million changing hands followed by SPCL, IFAD Autos, Lafarge Surma Cement and ACI.

Northern Jute Manufacturing was the day's top gainer, posting a rise of 9.17 per cent while Bank Asia was the worst loser, plunging by 13.95 per cent following its price adjustment after record date.

The port city bourse, Chittagong Stock Exchange (CSE) also closed in the red with its Selective Categories Index - CSCX - lost 105.07 points to close at 8,509.08 points.

Losers beat gainers 174 to 30, with 30 issues remaining unchanged at the port city bourse that traded 7.58 million shares and mutual fund units, turnover value of Tk 282.88 million.

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Tuesday, March 10, 2015

Stocks see marginal gain after six trading days

FE Report - 10 March'2014 Tuesday
Stocks posted marginal gain Monday after losing in the last six consecutive sessions as a section of investors took position on lucrative stocks amid ongoing political unrest in the country.

The market opened with upward note, but it slowed down as the session progressed amid modest see-saw. At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE) went up by 1.27 points or 0.02 per cent to close at 4,626.22 points, after losing 138 points in the last six sessions in a row.

The two other indices also closed in green. The DS30 index, comprising blue chips gained 2.36 points or 0.13 per cent to close at 1,714.66 points. The DSE Shariah Index (DSES) advanced 2.59 points or 0.23 per cent to close at 1,105.75 points.

Turnover improved slightly, but remained below Tk 3.0 billion-mark. The total turnover stood at Tk 2.79 billion, registering an increase of 12.3 per cent over the previous session's value of Tk 2.49 billion.

The investors' attention was mostly focused on engineering, textile and power - the sectors that accounted for 18 per cent, 15 per cent and 14 per cent of the day's total turnover respectively.

"The market closed in flat in all three indices of the country's major bourse amidst increased participation from the investors," said International Leasing Securities in an analysis.

Several investors started to take position on fundamental stocks which caused the market turnover surged by 12.3 per cent, said the International Leasing.

However, early buy pressure failed to sustain as indecisiveness sustained due to the fragile political outlook, the International Leasing added.

IDLC Investments said: "Early hour enthusiasm got evaporated for lack of support, as majority of investors fear continued downtrend in coming days".

With unrest wounding the economy major equity market repelled investors to take residual interest to the economy, said the merchant bank.

"Market closed on flat green zone after witnessing six losing streaks in a row. Stocks moved indolently at this level and trying to consolidate above the support level of 4,600 points," said LankaBangla Securities.

The major sectors posted mixed performance in the session. Food and allied registered the highest gain of the session of 2.20 per cent. Cement advanced by 1.75 per cent and pharmaceuticals 0.19 per cent gained marginally.

Banks retraced by 1.0 per cent and NBFIs closed flat in red losing 0.07 per cent. Telecommunication went down by 0.61 per cent. Power closed 0.31 per cent lower.

The losers took a modest lead over the gainers as out of 302 issues traded, 137 declined and 132 advanced while 33 remained unchanged on the DSE floor.

Activities increased in the major bourse where volume was up by 23.13 per cent, but trade was down by 4.39 per cent. A total number of 0.087 million trades were executed with trading volume of 70.20 million securities.

The market capitalisation on DSE stood at Tk 3,156.59 billion against Tk 3,154.08 billion in the previous session.

Shahjibazar Power Company continued to top the turnover list with shares worth Tk 166.92 million changing hands followed by Shasha Denims, SIBL, GP and IFAD Autos.

Anwar Galvanizing was the day's top gainer, positing a rise of 7.96 per cent while Mutual Trust Bank was the worst loser, plunging by 19.37 per cent following its price adjustment after record date.

The port city bourse, Chittagong Stock Exchange (CSE) also closed in green with its Selective Categories Index - CSCX - gained 1.31 points to close at 8,618.72 points.

Gainers beat losers 109 to 91, with 25 issues remaining unchanged at the port city bourse that traded 7.11 million shares and mutual fund units, turnover value of Tk 261.25 million.

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Monday, March 9, 2015

Stocks fall for sixth day amid continuing political stalemate

New Age - 09 March'2015 Monday


Dhaka stocks declined for the sixth trading session on Sunday, the first trading session of the week, as investors see no immediate end to the ongoing political unrest.
The key index of Dhaka Stock Exchange, DSEX, fell by 0.85 per cent, or 39.96 points, to close at 4,624.94 points on the day.
Market fell throughout the session due to investors’ panic-driven share sell-offs to avoid incurring further loses, stockbrokers said.
As prime minister Sheikh Hasina on Saturday pronounced tough words for the BNP-led opposition and for BNP chairperson Khaleda Zia, investors assessed that the political unrest might prolong further, they said.
Hasina at a rally at Suhrawardy Udayn on Saturday said BNP chairperson Khaleda Zia would have to stand trial for ordering murders and terror acts.
Although, some scrip-wise investment was observed on the day but that failed to keep the market upward, brokers said.
‘Depression eclipsed the market as solution to political uncertainty seems far-fetched, in the near terms,’ IDLC Investments said in its daily market commentary.
‘With terror in the back of mind, investors stood on their toe to sell off their holdings at signs of worsening situation,’ it said.
‘As a result, market faced persistent gradual downtrend with occasional shakeout in specific sessions,’ said IDLC.
Lankabangla Securities in its market analysis on Sunday said, ‘Sell off continues in the broad market amid lower turnover as investors remained in the sideline to watch market movement. Political situation is yet to get stable.’
DS30, the blue-chip index of DSE, fell by 1.07 per cent, or 18.64 points, to decline at 1,712.29 points on the day.
The Shariah index of DSE, DSES, closed at 1,103.16 points, shedding 0.84 per cent or 9.35 points.
Of the 304 shares and mutual funds traded on the day, 100 advanced, 158 declined and 46 remained unchanged.
Turnover of the bourse fell marginally to Tk 249.06 crore on the day compared with that of Tk 266.30 crore in the previous trading session.
Shahjibazar Power Company led the turnover chart on the day as its shares worth Tk 16.09 crore changed hands.
IFAD Autos, Shasha Denims, Lafarge Surma Cement, Summit Alliance Port, IDLC Finance, Western Marine Shipyard, Saif Powertec, National Polymer and Bangladesh Submarine Cable Company were among other turnover leaders.
IFAD Autos gained the most on Sunday with a 9.89-per cent increase in its share prices, while Fareast Finance and Investment was the worst loser of the day, shedding 12.25 per cent.

Entitlement for rights shares Shareholders have to apply within stipulated timeframe

FE Report - 09 March'2015 Monday
Shareholders entitled for rights shares will now have to apply within the stipulated timeframe by fulfilling the offer documents as the regulator cancelled its earlier directive, officials said.

The Bangladesh Securities and Exchange Commission (BSEC) said this in a fresh directive issued on March 4 last.

Earlier, on October 12, 2011 the securities regulator issued a directive asking the listed companies to resolve the complaints of shareholders, who fail to receive offer documents of rights shares timely, within 60 days after the completion of subscription period.

BSEC commissioner Arif Khan said in 2011 the incumbent commission created the scope of evaluating shareholders' complaints on failure of getting offer documents during the subscription period.

"Our initiative acted well and presently the number of claimants on failure of receiving the offer documents has reduced noticeably. That's why the regulator lifted its earlier directive for the sake of completing the subscription of rights shares within stipulated timeframe," Mr. Khan said.

He said the regulator has also ensured the availability of getting offer documents promptly.

"As per our directive, the listed companies must publish the prospectus of the rights issue in four news papers along with sending offer documents to shareholders through courier service," Khan said.

"Nevertheless, the regulator will observe the outcome of the fresh directive."

The subscription period of rights issue varies from 15 days to 30 days. Shareholders entitled for rights shares will have to apply for rights shares within such timeframe.

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Anwar Galvanizing to enhance production

FE Report - 09 March'2015 Monday
Anwar Galvanizing, an engineering sectors' listed company has planned to double its production capacity by installing the latest technology, according to a web post on Dhaka Stock Exchange (DSE) Sunday.

"The company has informed that the board of directors has decided to import and install the latest technology in casting induction furnace to double capacity of the plant and at the same time induction furnace technology will allow re-use of wastage up to 80 per cent," said the web post.

The machine is also going to be imported by June, 2015. The estimated landed cost of the induction furnace is Tk 6.20 million and the capacity of the plant is as follows: Existing (F/G): 1,160 MT/year and New (F/G): 1,880 MT/year, said the web post.

Following the news, the company's share price jumped 7.96 per cent to close at Tk 36.4 on Sunday.

Of the total shares - 34.95 per cent held by sponsor-directors, 17.92 per cent by institutional investors and 47.13 per cent held by public, according to DSE website information.

The company was listed in the Dhaka bourse - DSE in 1996. The company belongs to the engineering sector in the category of 'B'.

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DSEX hits 5-week low, turnover drops further

FE Report - 09 March'2015 Monday
Stocks extended their losing streak for the sixth running sessions Sunday with key index of the major bourse came down to five week low as investors remained watchful amid continued political unrest.

The market opened with downward note which sustained throughout the session. DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down further by 39.96 points or 0.85 per cent to close at five week-low at 4,624.94 points.

DSEX shed 138.27 points or 2.90 per cent in the last six consecutive sessions.

The two other indices also closed lower. The DS30 index, comprising blue chips lost 18.64 points or 1.07 per cent to close at 1,712.29 points. The DSE Shariah Index (DSES) shed 9.35 points or 0.84 per cent to close at 1,103.16 points.

Trading at DSE remained sluggish and total turnover amounted to Tk 2.49 billion, registering a decline of 6.47 per cent over the previous session's value of Tk 2.66 billion.

The investors' attention was mostly focused on engineering, power and textiles - the sectors that accounted for 20.8 per cent, 14.6 per cent and 12.7 per cent of the day's total turnover respectively.

"The stock market ended in negative note for the six consecutive sessions amid the nationwide prolonged political unrest," said International Leasing Securities in an analysis.

Investors' confidence continued to deteriorate and the market turnover remained poor with 6.47 per cent down from the previous session, said the International Leasing.

"Price correction in few large-cap sectors like cement and food and allied contributed to the big fall in indices," said the International Leasing.

IDLC Investments said: "Depression eclipsed the market as solution to political uncertainty seems far-fetched, in the near term".

With terror in the back of the mind, investors stood on their toe to sell off their holdings at signs of worsening. As a result, market faced persistent gradual downtrend with occasional shakeout in specific sessions, said the merchant bank.

LankaBangla Securities said: "Sell-off continues in the broad market amid lower turnover as investors remained in the sideline to watch market movement".

"Political situation is yet to get stable," said the stock broker.

All the other major sectors closed lower. Cement registered heavy correction of 3.77 per cent - following unpromising 5.0 per cent cash dividend declaration from Lafarge Surma Cement the heavy weight constituent of the sector.

Food and allied sector also posted heavy loss of 3.14 per cent. In the financial sector -Banks and NBFIs - retraced by 0.84 per cent and 0.64 per cent respectively. Pharmaceuticals also closed lower in the session with 0.31 per cent loss.

The losers took a modest lead over the gainers as out of 304 issues traded, 158 declined and 100 advanced while 46 remained unchanged on the DSE floor.

Activities decreased in the major bourse where volume and trade were down 16.10 per cent and 13.42 per cent respectively. A total number of 0.091114 million trades were executed with trading volume of 57.01 million securities.

The port city bourse, Chittagong Stock Exchange (CSE) also closed lower with its Selective Categories Index - CSCX - lost 49.46 points to close at 8,617.41 points.

Losers beat gainers 107 to 87, with 29 issues remaining unchanged at the port city bourse that traded 6.36 million shares and mutual fund units, turnover value of Tk 236.94 million.

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