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 OFFLINE | 19.05.2011
Stocks see decline in index, turnover
FE Report
Dhaka stocks closed lower Wednesday amid high volatility with substantially low turnover as investors eyed some positive measures in the upcoming budget for the capital market.
Market insiders said, investors are more reluctant to buy new shares as they are waiting for the 2011-2012 budgets. Finance Minister is expected to declare the budget in the second week of June.
"Investors are expecting some incentive measures for the capital market in the up coming budget", they added.
However, a stock broker said the vested quarters, whose names appeared in the stock scam report, are still trying to make the market volatile so that the government and new SEC chairman could not go tough action against them.
The benchmark DSE General Index (DGEN), the yardstick of the DSE went down by 30.49 points or 0.52 per cent to close at 5,760.61.
The broader All Shares Price Index (DSI) shed 21.61 points or 0.45 per cent and close to 4,793.30. The DSE-20 index comprising blue-chip shares also lost 14.41 points or 0.38 per cent to 3,761.28.
Professor Salauddin Ahmed Khan, former CEO of the Dhaka Stock Exchange said the market suffered from a liquidity crisis and many investors are still observing the situation though the government appointed a new SEC chairman.
"Many investors are still observing the situation though the government appointed new SEC chairman while some took profit to minimize their loses as the market gained in the last consecutive three sessions," said Mr. Khan.
He said at present to increase liquidity flow in the market is a big challenge and if liquidity flow increased, the market will be stable.
Yawer Sayeed, managing director of AIMS of Bangladesh said the investors' confidence is still low as the government is yet to punish any one regarding recent stock scam report.
Turnover volume, in value terms declined substantially and stood at Tk Tk 4.55 billion, down by 25.28 per cent, from Tk 6.09 billion in the previous session.
A merchant banker said rumour relating to impose tax on capital gain in the upcoming national budget also made the investors shaky.
However, the market opened with a positive note, gaining five points within minutes of start of the trading and it go down 25 points after five minutes. After that it oscillated negative and positive zone several times throughout the session and finally closed 30 points lower.
A total of 47.14 million shares changed hands on the day against 62.54 million in the previous session. The trade deals also decreased to 119,763 against Monday's 150,993.
Total market capitalization slightly declined and stood at Tk 2,666.22 billion against Tk 2,674.76 billion in the previous session.
Out of 250 issues traded on the day, 87 advanced, 153 declined and 10 remained unchanged.
Most of the major sectors lost on the day with jute sector suffered the most and lost 1.88 per cent.
Banking issues, which make up more than one-third of the market capitalization lost 0.72 per cent.
Grameenphone, the most weighted shares in the DSE, continued to advance, rising Tk 0.40 per share and closed at Tk 151.6.
Among the notable losers---NBFIs 0.35 per cent, and pharmaceuticals 0.13 per cent, mutual fund 0.44 per cent, fuel and power 0.58 per cent, textile 1.11 per cent, ceramics 0.42 per cent.
However, cement, general insurance and life insurance sector rose by 1.54 per cent, 0.04 per cent and 0.43 per cent respectively. |
NEWS 18.05.2011+19.05.2011
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