FE Report - February 02'2012 Thursday
Dhaka stocks witnessed yet another massive fall Wednesday maintaining its previous day's negative trend with the key index slipping more than six per cent.
The DGEN came down below the 4,000 points level on the day and reached at 3,887.18, which was 26 months' low.
The market insiders said the investors were selling shares from the very beginning of the session out of panic in a bid to leave the market any how, as uncertainty looms large in the market.
The market opened with a negative note and lost more than 140 points within five minutes of starting of the session.
The downtrend continued until the market closure amid moderate ups and downs and finally ended the day more than 266 points lower.
The benchmark General Index of the DSE (DGEN), the yardstick of the market, plummeted 266.78 points or 6.42 per cent to close at 3,887.18, dipping below 4,000 points level for the first time since November 15, 2009.
On November 15, 2009 the DGEN was resting at 3,383.
The broader DSE All Shares Price Index (DSI) plunged 219.08 points or 6.27 per cent to close at 3,269.90. The DSE-20 blue-chip index also declined 152.96 points or 4.63 per cent to close at 3,146.94.
Mr Akter H Sannamat, former managing director of Prime Finance and Investment, said the freefall of market continued as the investors are selling shares out of panic seeing no sign of recovery.
The investors were upset as there was no effective outcome from the Tuesday's meeting and opted for selling shares in a bid to quit the market any how, he added.
"To bring back normalcy in the market, the central bank and the SEC should take some positive steps immediately," suggested Mr Sannamat, also a stocks expert.
If the central bank decreases Cash Reserved Requirement (CRR) and increases repo, the liquidity situation may improve to some extent, he said.
The SEC should introduce lower circuit breaker for DGEN to stabilise the market though it is too late to introduce it, he added.
It was a wise decision for the SEC to introduce it when the DGEN was 5,000, he mentioned.
However, he also said, the SEC should strengthen its monitoring system so that no vested quarters can take any opportunity.
Total turnover value stood at Tk 2.70 billion in value terms, against Tk 2.25 billion in the previous session.
Almost 97 per cent shares lost in prices on the day as out of 257 issues traded, only four advanced, 249 declined and four remained unchanged.
A total of 70.31 million shares changed hands on the day against 53.79 million in the previous session. The trade deals also increased to 104,321 against Tuesday's 90,678.
Total market capitalisation of the DSE came down to Tk 2,135.24 billion against Tk 2,230.35 billion in the previous session.
Among the major sectors, NBFIs, banks and fuel and power lost 8.03 per cent, 6.24 per cent and 5.11 per cent respectively.
Pharmaceuticals and telecommunications sectors lost 4.59 per cent and 2.83 per cent respectively.
Grameenphone (GP) was the top turnover leader with shares worth Tk 144.69 million changed hands.
The other turnover leaders were RN Spinning, Beximco Limited, SIBL, National Bank, United Airways, Beacon Pharma, Square Pharma, Fu-Wang Ceramics and BSRM Steels.
Only four issues----Popular Life First Mutual Fund, Reliance Insurance, Prime Finance First Mutual Fund and Eastern Lubricant gained on the day.
The worst losers included RN Spinning, HR Textile, Anlima Yarn, MI Cement, Monno Ceramics, Prime Finance, Savar Refractories, BD Welding, Meghna Condensed Milk and Al-Haj Textile.
Dhaka stocks witnessed yet another massive fall Wednesday maintaining its previous day's negative trend with the key index slipping more than six per cent.
The DGEN came down below the 4,000 points level on the day and reached at 3,887.18, which was 26 months' low.
The market insiders said the investors were selling shares from the very beginning of the session out of panic in a bid to leave the market any how, as uncertainty looms large in the market.
The market opened with a negative note and lost more than 140 points within five minutes of starting of the session.
The downtrend continued until the market closure amid moderate ups and downs and finally ended the day more than 266 points lower.
The benchmark General Index of the DSE (DGEN), the yardstick of the market, plummeted 266.78 points or 6.42 per cent to close at 3,887.18, dipping below 4,000 points level for the first time since November 15, 2009.
On November 15, 2009 the DGEN was resting at 3,383.
The broader DSE All Shares Price Index (DSI) plunged 219.08 points or 6.27 per cent to close at 3,269.90. The DSE-20 blue-chip index also declined 152.96 points or 4.63 per cent to close at 3,146.94.
Mr Akter H Sannamat, former managing director of Prime Finance and Investment, said the freefall of market continued as the investors are selling shares out of panic seeing no sign of recovery.
The investors were upset as there was no effective outcome from the Tuesday's meeting and opted for selling shares in a bid to quit the market any how, he added.
"To bring back normalcy in the market, the central bank and the SEC should take some positive steps immediately," suggested Mr Sannamat, also a stocks expert.
If the central bank decreases Cash Reserved Requirement (CRR) and increases repo, the liquidity situation may improve to some extent, he said.
The SEC should introduce lower circuit breaker for DGEN to stabilise the market though it is too late to introduce it, he added.
It was a wise decision for the SEC to introduce it when the DGEN was 5,000, he mentioned.
However, he also said, the SEC should strengthen its monitoring system so that no vested quarters can take any opportunity.
Total turnover value stood at Tk 2.70 billion in value terms, against Tk 2.25 billion in the previous session.
Almost 97 per cent shares lost in prices on the day as out of 257 issues traded, only four advanced, 249 declined and four remained unchanged.
A total of 70.31 million shares changed hands on the day against 53.79 million in the previous session. The trade deals also increased to 104,321 against Tuesday's 90,678.
Total market capitalisation of the DSE came down to Tk 2,135.24 billion against Tk 2,230.35 billion in the previous session.
Among the major sectors, NBFIs, banks and fuel and power lost 8.03 per cent, 6.24 per cent and 5.11 per cent respectively.
Pharmaceuticals and telecommunications sectors lost 4.59 per cent and 2.83 per cent respectively.
Grameenphone (GP) was the top turnover leader with shares worth Tk 144.69 million changed hands.
The other turnover leaders were RN Spinning, Beximco Limited, SIBL, National Bank, United Airways, Beacon Pharma, Square Pharma, Fu-Wang Ceramics and BSRM Steels.
Only four issues----Popular Life First Mutual Fund, Reliance Insurance, Prime Finance First Mutual Fund and Eastern Lubricant gained on the day.
The worst losers included RN Spinning, HR Textile, Anlima Yarn, MI Cement, Monno Ceramics, Prime Finance, Savar Refractories, BD Welding, Meghna Condensed Milk and Al-Haj Textile.
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