Thursday, December 18, 2014

Dhaka stocks fall for 5th day

New Age - 18 December'2014 Thursday



Dhaka stocks declined for the fifth trading session on Wednesday as large-scale investors remained on the sidelines due to the Dhaka Stock Exchange’s delay in taking decision on resetting transaction charges.
Investors were waiting for the decision as trading cost rose after the DSE on December 11 had launched a new trading system, replacing its 16-year old system, allowing lot-free share trading at the bourse, stockbrokers said.
They said the lot-free trading system resulted in an increase in the number of trades and thus transaction cost.
A DSE board meeting held on Monday to reset transaction charges finished without any concrete decision.
The DSE key index, DSEX, closed at 4,837.92 points, slipping by 0.83 per cent or 40.72 points on Wednesday.
Turnover at the bourse increased to Tk 284.53 crore on the day compared with that of Tk 238.58 crore in the previous trading session.
Stockbrokers said some investors opted to go slow considering a probable DSE’s decision on transaction charges — howla and laga charges — on Wednesday evening at a board meeting of the bourse.
The DSE at the board meeting on Wednesday evening scrapped its trade charge — howla charge.
The bourse, however, at the meeting also raised laga charge — charge on total transaction value — by 0.01 per cent to 0.03 per cent from 0.02 per cent.
As the new trading system allows investors to trade shares only though a certain dealer of a brokerage house instead of old process of trading shares through all of the branches of a certain brokerage house, it was another problem for inventors to find the proper dealer designated for a certain brokerage house, they said.
Stockbrokers also said that a suitable solution to the transaction charge problem might re-track investors on the trading floor.
DS30, the blue-chip index of the DSE, closed at 1,788.70 points, shedding 0.87 per cent or 15.74 points.
The Shariah index of the bourse, DSES, fell by 0.82 per cent, or 9.46 points, to close at 1,137.88 points.
Of the 312 shares and mutual funds traded on Wednesday, 112 advanced, 173 declined and 27 remained unchanged.
‘The market lost another 40 points today [Wednesday], as a selling pressure out powered investors’ risk appetite,’ IDLC Investments said in its daily market commentary.
‘At the same time, the market is gradually overcoming its initial knee-jerk response to the new trading platform, with continuously rising turnover,’ it said.
‘Among the major updates on the financial sector, concerned over unrelenting increase in the load of non-performing loans, the central bank Monday asked bankers to bring down the loans below 10 per cent by the end of this month,’ LankaBangla Securities said in its daily market analysis.
Agni Systems led the turnover leaders with its shares worth Tk 10.79 crore changing hands.
Western Marine Shipyard, Fu Wang Foods, Lafarge Surma Cement, Square Pharmaceuticals, Summit Alliance Port, Tung Hai Knitting, Grameenphone, RAK Ceramics and Jamuna Oil were among the other turnover leaders.
MBL First Mutual Fund gained the most on the day with a 10-per cent increase in its share price, while Aziz Pipes was the worst loser on the day, shedding 10.20 per cent.

 

GP employees stage demo for share of profit

New Age - 18 December'2014 Thursday


A section of employees of leading mobile phone operator Grameenphone observed a sit-in agitation at the company head-office on Wednesday demanding 5 per cent share of profit of the company for three years from 2010 to 2012.
GP officials said the sit-in programme started at around 11am in the morning which was participated by more than 150 employees of the company.
During the sit-in programme, the top management of GP meet the demonstrating employees to sort out the matter.
As the management sought more time to settle the matter, the employees resumed their sit-in agitation which continued till evening, said officials.
‘We demonstrated today to press home our rightful demand of 5 per cent share of the company’s profit from 2010 to 2012. We met the chief executive officer and he asked for more time to settle the issue,’ Grameenphone Employees Union general secretary Mia Masud told New Age.
He said the employees were not willing to give more time as the matter has been pending for a long time.
GP officials said the company is required to share with the employees Tk 53.55 crore for the year 2010, Tk 94.45 crore for 2011 and Tk 87.5 crore for 2012.
GP, however, shared Tk 74 crore as profit for the year of 2013, said officials.
Asked about the issue, GP in an email reply to New Age said that the company management is willing to disburse the profit sharing amount but needed more time for doing that.
‘The issue of disbursement of the money for 2010-2012 in the WPPF trustee has been delayed due to longer than expected court proceedings. Hence, GP Management Team has clearly communicated its intention to seek an amicable solution which ensures payment to eligible recipients from the trustee as quickly as possible.’ It said.
The GP also said that the management had given the employees a commitment to come back within a week’s time (no later than Dec 24) with necessary actions.
‘Unfortunately, a group of employees had not accepted the necessary lead time and hence have resorted to agitation.  GPMT regrets this development, and reiterates its previous commitment,’ said the reply.


 

DSE revises stock trading charges

Daily Star - 18 December'2014 Thursday

The Dhaka Stock Exchange yesterday revised its charges on stock trading in the backdrop of a jump in the number of trades following the introduction of a lot-free share transaction system last week.
There will be no 'hawla' charge from today, in line with the modification, but investors will have to pay 'laga' charges at a rate of 0.03 percent on total turnover instead of a 0.02 percent rate.
The 'hawla' charge refers to the fees on the completion of a trade, while the 'laga' charge is the fees on turnover generated from an investor's share trading.
The hawla charge was Tk 4 (Tk 2 at buyer's end and Tk 2 at seller's end) for each contract as of yesterday.
The premier bourse also set the bond transaction fee at Tk 50 per trade. Previously, only the hawla and laga charges were applicable to bond transactions.
The DSE took the decisions at a meeting with TREC (trading right entitlement certificate) holders on the bourse premises.
The issue of revising the charges came into consideration after the bourse replaced its 16-year-old trading system with a new mechanism, allowing investors to trade single shares instead of lot-based ones.

However, turnover came down to Tk 200 crore as the charges proved costly for investors to trade on the bourse.
Published: 12:00 am Thursday, December 18, 2014


Stocks in free fall

Daily Star - 18 December'2014 Thursday

Stocks declined for the fifth day yesterday as investors remained reluctant to inject fresh funds into the market.
DSEX, the benchmark index of Dhaka Stock Exchange, edged 40.73 points down, or 0.83 percent, to finish the day at 4,837.93. DSES, the shariah index of the prime bourse, dropped 9.46 points, or 0.82 percent, to close at 1,137.88.  
“The market outlook remained hazy to investors,” LankaBangla Securities said.
Among other major updates on the financial sector, the central bank asked bankers on Monday to bring down non-performing loans below 10 percent by the end of this month.
Turnover, the most important indicator of the market, advanced 19.3 percent to Tk 285 crore, compared to that in the previous day.
A total of 0.83 lakh trades were executed with 7.14 crore shares and mutual fund units changing hands on the Dhaka bourse. The banking sector lost 1.19 percent in market capita-lisation, the highest among the major sectors, followed by non-bank financial institutions with 0.69 percent, food and allied 0.63 percent, and fuel and power 0.59 percent.
Losers beat gainers 173 to 112, and 27 remained unchanged out of the 312 issues traded on the DSE.


Agni System featured in the most traded stocks' chart with 32.31 lakh shares worth Tk 11 crore changing hands, followed by Western Marine Shipyard, Fuwang Food, Lafarge Surma and Square Pharma.
MBL First Mutual Fund was the highest gainer of the day, posting a 7.05 percent rise, while Aziz Pipes was the worst loser, plunging 10.20 percent.
The Chittagong Stock Exchange also declined yesterday with its selective categories gauge, CSCX, shedding 96.46 points to finish the day at 14,931.35 points.
Of the 253 issues that traded on the port city bourse, 138 declined, 81 advanced and 34 remained unchanged.
The CSE traded 81.59 lakh shares and mutual fund units with Tk 26 crore in turnover.

Published: 12:00 am Thursday, December 18, 2014

RISE IN NUMBER OF TRADES IN NEW TRADING SYSTEM - DSE scraps howla charge as trading cost increases

New Age - 18 December'2014 Thursday


The Dhaka Stock Exchange at a board meeting on Wednesday scrapped howla charge, charge per trade, to reduce trading cost burden on investors as the cost rose after the introduction of the lot-free trading system at the bourse on December 11, a DSE news release said.
The bourse, however, increased its transaction charge — laga charge — by 0.01 per cent to 0.03 per cent of total transaction made by an investor to keep its earnings unchanged.
The decision will come into effect from today, the DSE release said.
Brokerage houses will not impose any extra charge on investors after the increase in the transaction charge, a DSE board member told New Age after the meeting.
Since April 1, 2010, the DSE collected 0.02 per cent of total transaction value as laga charge from the brokerage houses along with Tk 2 as howla charge on per trade.
Investors are charged by brokerage houses at 0.35-0.50 per cent of total transaction value irrespective of number of trades.
The DSE before making Wednesday’s decision held a meeting with the trading rights entitlement certificate holders to discuss the complications arose after the introduction of the new trading system that allows investors to trade any amount of shares.
The DSE board member said that the management of the bourse at the meeting demonstrated different practices of the developed market on charges along with probable solutions and their effect on the DSE’s earnings.
Considering the proposals made by the TREC holders and the DSE management, the board scrapped the howla charge and raised the laga charge, he said.
Asked, DSE former president Ahasanul Islam Titu told New Age, ‘We have proposed that the bourse should scrap laga and howla charges and introduce a unified charge on share transaction that will be known as transaction charge.’
He said as the bourse after the demutualisation turned into a profit-oriented entity, they had suggested that the bourse should introduce a process that would not reduce DSE’s profitability.
‘We have also suggested that the bourse should evaluate the unified transaction charge on transaction and its impact on the bourse’s earnings after the next three or six months,’ he said.
TREC holders also suggested that the bourse should take intensive initiative to make the new trading system familiar to the investors as they are yet to feel comfortable with it, Titu said.
Since the launch of the new trading system at the bourse, the DSE key index declined for the fifth trading session on Wednesday as investors were yet to feel comfortable with the new trading system as the system increased trading cost.

Turnover on DSE remains poor

FE Report - 18 December'2014 Thursday
Stocks extended the losing streak for the four consecutive sessions Monday with turnover improved slightly as traders are getting accustomed with new trading system.

DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down further by 14.30 points or 0.29 per cent to close at 4,878.65 points amid volatile trading throughout the session. DSEX lost 65.38 points in the last four consecutive sessions.

The two other indices also closed in the red. The DS30, comprising blue chips lost 3.60 points or 0.19 per cent to close at 1,804.45 points. The DSE Shariah Index dropped 3.05 points or 0.26 per cent to close at 1,147.34 points.

Turnover at DSE remained sluggish hovering around Tk 2.0-billion level. The total turnover amounted to Tk 2.38 billion, registering an increase of 19 per cent over the previous session's value of Tk 2.00 billion.


The investors' attention was mostly focused on engineering, pharma and textile - the sectors that accounted for 14.77 per cent, 14.36 per cent and 10.29 per cent of the day's total turnover.

"The market prolonged its bearish vibe as lack of enthusiasm amongst the investors compelled the market's downturn for the four consecutive sessions," said International Leasing Securities in analysis.

"The investors' indecisive attitude was observed throughout the day although the day's turnover increased by 19 per cent compared to proceeding day".

Several small-cap stocks managed to grab a portion of investors' attention, while large-caps failed to generate any substantial activities, said the International Leasing.

 LankaBangla Securities said: "Stocks continued to taper for the four consecutive sessions owing to ongoing correction on large cap stocks".

Investors showed buying interest on some sector specific small-cap stocks, leading to gain in engineering, food and allied, tannery sectors, said the stock broker.

Sheltech Brokerage said: "Market has recovered significantly from Thursday's sharp turnover loss. Some of the news, such as Beximco's loan restructuring, news of second installment of the government's Tk 3.0 billion incentive for affected small investors may bring a positive vibe in the market".

All the other major sectors closed lower. Telecommunication posted the highest loss of 1.44 per cent. Power and cement went down by 0.48 per cent and 0.42 per cent respectively. NBFIs and banks also went down by 0.36 per cent and 0.18 per cent. Pharmaceuticals edged down by 0.16 per cent.

The losers took a lead over the gainers as out of 304 issues traded, 146 advanced, 119 declined and 39 remained unchanged on the DSE floor.

A total of 0.080 million trades were executed with trading volume of 65.50 million securities. The market capitalisation on DSE stood at Tk 3,238.82 billion against Tk 3,250.19 billion in the previous session.

Fu-Wang Foods Ltd was the most traded stock with shares worth Tk 122.09 million changing hands followed by Western Marine, Agni Systems, Square Pharma and Olympic Industries.

Fu-Wang Foods was also the day's highest gainer, posting a rise 7.05 per cent while EBL NRB Mutual Fund was the worst loser, plunging by 10.20 per cent.

The port city bourse, Chittagong Stock Exchange (CSE) ended in red with its Selective Categories Index - CSCX - lost 15.16 points to close at 9,152.75 points.

Losers beat gainers 130 to 88, with 30 issues remaining unchanged at the port city bourse that traded 8.31 million shares and mutual fund units, turnover value of Tk 264.50 million.

Meanwhile, DSE and CSE offices will remain closed today (Tuesday) on the occasion of Victory Day. Therefore, there will be no trade today (Tuesday).

babulfexpress@gmail.com

Tuesday, December 16, 2014

সবাইকে বিজয় দিবসের শুভেচ্ছা


Stocks dip for 4th day as new trading system haunts investors

New Age - 16 December'2014 Tuesday
Dhaka stocks declined for the fourth trading session on Monday due to investors’ sluggish participation on the trading floor as they were yet to feel comfortable with the new trading system introduced by the Dhaka Stock Exchange on December 11.
The DSE launched the new trading system, replacing its 16-year old system, allowing lot-free share trading at the bourse.
The key index of the DSE, DSEX, finished at 4,878.65 points, shedding 0.29 per cent or 14.30 points.
Stockbrokers said the new system with no ticker on the trading board kept investors in confusion in taking investment decisions.
Although the new trading system has a good number of features, customising the new trading board as per investors’ demand will take some time, they said.
Besides, scrapping of the lot-based trading system has increased share transaction cost to some extent that was another reason for the investors’ sluggish participation on the trading floor, stockbrokers said.
DS30, the blue-chip index of the DSE, finished at 1,804.45 points, slipping by 0.19 per cent or 3.60 points.
The Shariah index of the bourse, DSES, fell by 0.26 per cent, or 3.05 per cent, to close at 1,147.34 points.
Turnover at the bourse increased to Tk 238.58 crore on Monday compared with that of Tk 200.59 crore in the previous trading session.
Of the 304 shares and mutual funds traded on the day, 119 advanced, 146 declined and 39 remained unchanged.
‘The DSE continued to taper for the four consecutive sessions owing to ongoing correction on large cap stocks,’ said LanakaBangla Securities in its daily market analysis.
Investors showed buying interest on some sector specific small cap stocks, leading to gain in engineering and food and allied by 0.5 per cent and 0.22 per cent respectively, it said.
‘However, bank, cement, textile and pharmaceutical sectors lost 0.18 per cent, 0.42 per cent, 1.11 per cent and 0.16 per cent respectively,’ it said.
Fu Wang Food led the turnover leaders with its shares worth Tk 12.20 crore changing hands.
Western Marine Shipyard, Agni Systems, Square Pharma, Olympic Industries, BEXIMCO, Keya Cosmetics, Grameenphone, BRAC Bank and Beximco Pharma were among the other turnover leaders.
Fu Wang Food gained the most on the day with a 7.05-per cent increase in its share price, while EBL NRB Mutual Fund was the worst loser on the day, shedding 10.20 per cent. - See more at: http://newagebd.net/76934/stocks-dip-for-4th-day-as-new-trading-system-haunts-investors/#sthash.euF4LZd6.dpuf



Dhaka stocks declined for the fourth trading session on Monday due to investors’ sluggish participation on the trading floor as they were yet to feel comfortable with the new trading system introduced by the Dhaka Stock Exchange on December 11.
The DSE launched the new trading system, replacing its 16-year old system, allowing lot-free share trading at the bourse.
The key index of the DSE, DSEX, finished at 4,878.65 points, shedding 0.29 per cent or 14.30 points.
Stockbrokers said the new system with no ticker on the trading board kept investors in confusion in taking investment decisions.
Although the new trading system has a good number of features, customising the new trading board as per investors’ demand will take some time, they said.
Besides, scrapping of the lot-based trading system has increased share transaction cost to some extent that was another reason for the investors’ sluggish participation on the trading floor, stockbrokers said.
DS30, the blue-chip index of the DSE, finished at 1,804.45 points, slipping by 0.19 per cent or 3.60 points.
The Shariah index of the bourse, DSES, fell by 0.26 per cent, or 3.05 per cent, to close at 1,147.34 points.
Turnover at the bourse increased to Tk 238.58 crore on Monday compared with that of Tk 200.59 crore in the previous trading session.
Of the 304 shares and mutual funds traded on the day, 119 advanced, 146 declined and 39 remained unchanged.
‘The DSE continued to taper for the four consecutive sessions owing to ongoing correction on large cap stocks,’ said LanakaBangla Securities in its daily market analysis.
Investors showed buying interest on some sector specific small cap stocks, leading to gain in engineering and food and allied by 0.5 per cent and 0.22 per cent respectively, it said.
‘However, bank, cement, textile and pharmaceutical sectors lost 0.18 per cent, 0.42 per cent, 1.11 per cent and 0.16 per cent respectively,’ it said.
Fu Wang Food led the turnover leaders with its shares worth Tk 12.20 crore changing hands.
Western Marine Shipyard, Agni Systems, Square Pharma, Olympic Industries, BEXIMCO, Keya Cosmetics, Grameenphone, BRAC Bank and Beximco Pharma were among the other turnover leaders.
Fu Wang Food gained the most on the day with a 7.05-per cent increase in its share price, while EBL NRB Mutual Fund was the worst loser on the day, shedding 10.20 per cent.

Investors hold back stocks for fourth day

Daily Star - 16 December'2014 Tuesday

Stocks declined for the fourth day yesterday as investors stuck to a wait-and-see approach.
The bearish trend at the Dhaka Stock Exchange began after the new trading system was introduced on Thursday.
DSEX, the benchmark index of DSE, dropped 14.30 points, or 0.29 percent, to finish the day at 4,878.65 points. DSES, the shariah index of the prime bourse, also declined almost 3.05 points, or 0.27 percent, to close at 1,147.34.
“DSE continued to taper for four consecutive sessions, owing to ongoing correction on the large cap stocks,” commented LankaBangla Securities.
Investors showed an interest in small cap stocks of different sectors like engineering, food and allied, and tannery, leading them to gain 0.5 percent, 0.22 percent and 0.88 percent respectively, the stockbroker said.
However, banks, cement, textiles, and pharma lost 0.18 percent, 0.42 percent, 1.11 percent and 0.16 percent.
The market remained nonchalant throughout the session amid weak investor participation, said IDLC Investments.

Turnover, the most important indicator of the market, advanced 18.9 percent to Tk 238 crore, compared to the previous day. 
A total of 0.81 lakh trades were executed with 6.55 crore shares and mutual fund units changing hands on the Dhaka bourse.
Losers beat gainers 146 to 119, while 39 remained unchanged of the 304 issues traded on the DSE.
Fuwang Food was the turnover topper with 48.11 lakh shares worth Tk 12 crore changing hands, followed by Western Marine Shipyard, Agni System, Square Pharma and Olympic Industries.
Fuwang was also the highest gainer of the day, posting a 7.05 percent rise, while EBL NRM Mutual Fund was the worst loser, plunging 10.20 percent.

Published: 12:00 am Tuesday, December 16, 2014


NEW TRADING SYSTEM DSE to set transaction charges after consulting with member-brokers

New Age - 16 December'2014 Tuesday


The Dhaka Stock Exchange will make decisions on reviewing trade charges known as howla charge and laga charge after holding a meeting with the trading right entitlement certificate holders tomorrow (Wednesday), DSE board members said after Monday’s board meeting.
The DSE board took the decision after reviewing different proposals made by the board members, they said.
‘As interest of the bourse, its shareholders and investors are related with the howla and laga charges, making decision in this connection is crucial for the bourse,’ a DSE board member told New Age.
He said the bourse would discuss with the TREC holders on Wednesday different proposals made by the board members before holding an emergency board meeting scheduled to be held on the same day.
‘Some board members proposed that the DSE should waive howla charge, while some suggested waiver of laga charge,’ he said.
‘Collecting howla charge based on number of trades was also discussed,’ he said.
The key consideration of the bourse is to find a solution that will be suitable for the bourse, its shareholders as well as for the investors, he said.
‘Along with the proposed solutions, impact on the DSE’s revenue was also projected at the board meeting,’ he said.
As per the DSE rules, an investor has to pay Tk 2 to the bourse and Tk 10 as howla charge to stockbroker for each transaction irrespective of the number of shares traded — 100 or 1.
The bourse at the same time collects charge on turnover known as laga charge at 0.02 per cent, while investors
have to pay 0.35-0.50 per cent of turnover as laga charge to the DSE and the respective brokerage houses.
Stockbrokers on behalf of the bourse collect the charge from investors on their (investors’) total turnover.
The DSE has moved to review the charges following a jump in the number of trades for share transaction after the introduction of the lot-free trading system on December 11, DSE members said.
The issue of revising howla charge came into the bourse’s consideration after it had scrapped lot-based trading allowing investors lot-free trading that increased shares transaction charges sharply for small amount of shares.
For instance, it required on an average 225 trades for transaction of shares worth Tk 1 crore on December 10, while it took 478 trades for transaction of shares worth Tk 1 crore on December 11 with the introduction of the new trading system.
Some 94,904 trades were executed to transact 11,37,55,260 shares worth Tk 421.59 crore on December 10, while it took 65,102 trades to transact 3,39,97,970 shares worth Tk 136.89 crore on December 11.
The DSE on December 11 introduced the new trading system, replacing its 16-year old system, allowing investors single-share trading instead of lot-based one.
After the launch of new trading system at the bourse, the key index of the bourse declined for the fourth trading session on Monday as investors were yet to feel comfortable with the new trading system as the system increased trading cost.