stockmarkets - Dhaka Mirror

Stocks suffer swings, end in the red

Admin — Wed, 27 Jul 2011 22:32:41 +0000

Stocks fluctuated yesterday before settled in the negative zone as the investors went for selling shares to pocket profit.
The benchmark general index of Dhaka Stock Exchange, DGEN, shed 14 points or 0.22 percent to end at 6,627.
On the port city’s bourse, the selective categories index, CSCX, the main yardstick of Chittagong Stock Exchange, lost 17 points or 0.15 percent, to close at 12,208.
Stocks on the DSE suffered a steep fall in the first five minutes of the day’s trading, declining more than 50 points. However, it showed a dramatic recovery later. The indices of bourses closed negative.
Analysts attributed the market swings to price corrections.
“It is a rational behavior of the market as share prices declined for three days after gaining for a few days,” said Prof Salahuddin Ahmed Khan, who teaches finance at Dhaka University.
“It is a price correction as investors went for selling shares to make new investment into the market,” said Khan, also a former chief executive officer of DSE.
Yawer Sayeed, managing director of AIMS of Bangladesh, said shares prices declined as the investors went for profit-taking selling shares from different sectors.
He said the government’s decision to offload more shares of the listed state-owned enterprises is a very good decision, which will increase the supply of scrips into the market.
Two state-run companies Meghna Petroleum and Jamuna Oil started offloading shares onto the stockmarket yesterday. Meghna Petroleum and Jamuna Oil advanced 1.52 percent and 2.7 percent respectively, to close the day at Tk 200.7 and Tk 281.1.
The banking sector lost 1.2 percent and non-bank financial institutions were down by 1.5 percent. The telecoms sector however gained 0.29 percent, pharmaceuticals 0.89 percent and fuel and power 1.17 percent.
IDLC Finance declined 3.6 percent following its publication of half-yearly earnings, said BRAC EPL in its daily market analysis.
Of the total 263 issues traded on the DSE floor, 135 declined, 114 advanced and 14 remained unchanged.
United Airways topped the turnover chart with 11.41 lakh shares worth Tk 64.42 crore changing hands.
Sinobangla Industries was the biggest gainer of the day, posting 9.45 percent rise, while the IDLC Finance was the worst loser.
Turnover on the DSE floor stood at Tk 1,726 crore, a 2.8 percent hike over the previous day’s Tk 1,680 crore. More than 20 crore shares and mutual fund units changed hands on the country’s premier bourse.

-WIth The Daily Star input

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Stocks rise for seventh day

Admin — Thu, 14 Jul 2011 07:09:41 +0000

Stocks gained for a seventh day as investors went on a buying spree to cash in on the lower price earnings ratio of individual sectors.
The benchmark general index of Dhaka Stock Exchange, DGEN, rose 48 points or 0.78 percent to 6,562.
On the port city’s bourse, the selective categories index of Chittagong Stock Exchange, CSCX, added 141 points or 1.20 percent, to close at 11,877.
The market started the day on a negative note but retraced to positive trend at 11:10am, gained 40 points.
The volume of trading hits a high at the country’s premier bourse as 20.83 crore shares and mutual funds changed hands yesterday.
The price earnings ratio of banking sector seemed very lucrative for long term investment, said a market insider.
The commission should work for increasing supply in the market to reduce gap between demand and supply, he added.
The surveillance system of the Securities and Exchange Commission is not adequate for finding all manipulations, said an asset manager.
It is a matter of concern that some low-profile shares are behaving abnormally without any price sensitive information, he added.
Indices gained for the last couple of sessions due to active participation of the small and institutional investors and an increased flow of money, said Green Delta Securities in a daily analysis.
Turnover on the DSE floor surged 4.3 percent to Tk 1,480 crore from the previous day’s turnover of Tk 1,419 crore.
The mutual funds sector was the biggest gainer, posting a 5.75 percent rise as the investors anticipated that most of the funds will declare a good corporate result. Among the top ten gainers, eight were mutual funds.
The banks added 1.05 percent, non-bank financial institutions 0.51 percent, telecoms 3.05 percent, pharmaceuticals 0.34 percent and fuel and power 0.77 percent.
Bextex topped the turnover leaders with 17.20 lakh shares worth Tk 66.29 crore traded.
Federal Insurance was the biggest gainer of the day, posting a 9.97 percent rise, while Meghna Life Insurance Company was the worst loser, slumping 27.29 percent.

-With The Daily Star input

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Stocks gain for sixth day

Admin — Tue, 12 Jul 2011 20:24:11 +0000

Stocks gained for a sixth day as buyers went on a buying spree as the market has been showing signs of recovery for the last few days.
The benchmark general index of Dhaka Stock Exchange, DGEN, went up 56 points or 0.87 percent, to end the day at 6,514.
On the port city’s bourse, the selective categories index of Chittagong Stock Exchange, CSCX, added 81 points or 0.70 percent, to close at 11,736.
Investors’ participation was high from the first session of the four-hour trading session on the bourses after a 30-hour countrywide shutdown. The market started the day on an upbeat note in the first trading session.
Some investors screamed for buying low-profile shares, which is not a good sign for the market’s wellbeing. A number of low-profile companies gained abnormally without any price sensitive news, said a stock broker.
He suggested the investors buy shares of high-profile companies for the long run as the price earnings ratio of some sectors looks quite lucrative.
Banking scrips again joined the race in earnest and helped set DGEN above 6,500 points, a strong resistance level, said LankaBangla Securities, in its daily market analysis.
The government’s decision of allowing undisclosed money into the stockmarket kept the market buoyant as investors are hoping that abundant credit would flow into the market, said a merchant banker.
The Securities and Exchange Commission should approve initial public offerings of some companies as soon as possible to increase supply to the market, he added.
Turnover on the premier bourse stood at Tk 1,419 crore, 10.3 percent down from the previous day’s
Tk 1,581 crore.

-With The Daily Star input

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Stock turnover hits six-month high

Admin — Mon, 11 Jul 2011 05:22:35 +0000

Stocks gained for a fourth day with a high turnover as investors went for fresh buying of shares hopping that the market will gain gradually despite a 30-hour countrywide shutdown.
The turnover on the premier bourse rose to Tk 1,646 crore, a six-month high. That was a 22.1 percent rise from the previous day’s Tk 1,348 crore. On January 12, the DSE recorded Tk 1,649 crore in turnover.
The benchmark general index of Dhaka Stock Exchange, DGEN, went up 125 points or 1.99 percent, to end the day at 6,437.
The selective categories index of Chittagong Stock Exchange, CSCX, increased 254 points or 2.23 percent, to close at 11,640.
The market started the day on a positive note, and gained 65 points in the first five minutes of trading. Investors’ participation was low due to the strike. Many took part in the trading by phone.
Most of the investors went for fresh buying as per the rule of the National Board of Revenue to keep the invested black money in the stockmarket for two years.

-With The Daily Star input

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Banking Division offers recipe for stockmarket

Admin — Sun, 01 May 2011 04:52:45 +0000

The Banking Division of the finance ministry has recommended 11 steps to the government as measures to curb stockmarket manipulation.
The recommendations were based on a review of a report submitted by a stockmarket probe committee.
According to the Banking Division, a law should be in place to regulate the issue of preference shares of listed companies.
The Banking Division claimed that Dhaka and Chittagong stock exchanges provided price-sensitive information to different companies and have political persons at the helm.
The division found a lack of coordination between bourses and the Securities and Exchange Commission. The bourses did not de-list companies which were out of operation, nor did they complete demutualisation, it said.
The Public Issue Rules 2006, meant for listed companies, were in contradiction with the goals and objectives of the SEC, it was found.
The price upward trend of the capital market was fuelled by some unethical investors: One investor, Golam Mustafa, for instance, placed buying orders at high prices only to cancel them minutes later. And he had bought shares from other brokerage houses, while he sold through other beneficiary accounts and offered “most unfavourable prices” to manipulate the market, the Banking Division pointed out.
The government should find out the investors who went for big selling from December 10 to January 11, it suggested.
In line with the report, the Banking Division asked the government to investigate the unusual price hike of Chittagong Vegetables that gained 251 percent in 2009 and 4,148 percent in 2010.
The division also asked the government to probe the unusual price hikes of Beach Hatchery, Aftab Automobiles, Safko Spinning Mills, Orion Infusion, Padma Cement, Bextex, CMC Kamal, BD Welding and Singer BD; and Z-category companies, non-operational companies and some fabricated accounts.
The government should also reform the securities law on issuing of rights shares of listed companies, it said

Courtesy of The Daily Star

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Stock efforts fall apart

Admin — Fri, 21 Jan 2011 05:09:38 +0000

6 brokers’ trading suspended for 30 days on market volatility charges; top bosses stripped of responsibilities; book-building system on hold; markets closed on Sunday
The share index breaker failed to prevent a free fall in prices on the Dhaka and the Chittagong stock exchanges yesterday.
The Dhaka stock index had nosedived 600 points before the just-introduced circuit breaker put a stop to trading on the two bourses.
The latest fall prompted the Securities and Exchange Commission to keep trading shut on Sunday and suspend trading activities of six stockbrokers, their managing directors and chief executive officers for 30 days.
The stockmarket regulator also postponed the book building method for initial public offering after a strong criticism for the system’s misuse by some issuer companies.
The stockmarkets saw the share prices slump five minutes into the start of trading.
Trading on the Dhaka and Chittagong bourses started at 1:00pm, instead of 11:00am, in line with a decision of the Securities and Exchange Commission that approved a DSE proposal to cut the transaction period by two hours for now.
The circuit breaker, introduced on Wednesday, was meant to stop the trading after the General Index went down by 225 points but the breaker’s manual operating system failed to do that.
Panic sell-offs by nervous investors triggered the slump, the quickest in the history of Bangladesh’s capital market.
Angry investors took to the streets and vented their frustration on passing vehicles after the market was shut for the day.
They clashed with law enforcers in the financial district of Motijheel.
Investors, who trade from other areas including Dhanmondi and Mirpur in the capital, also clashed with police.
Clashes were also reported in Chittagong, Rajshahi, Barisal and Sylhet, where investors took part in trade through brokers.
With yesterday’s slump, the DGEN came down to 6,326 points, the lowest in six months. The downward trend made the market lose nearly 1,350 points in the last six days.
Market experts put the declining trend down to the liquidity crunch in the secondary market. But the situation has worsened for lack of confidence among investors.
The retail investors got panicked seeing no positive impacts of the regulator’s measures on the market.
“Liquidity flow is slowly coming back to the market. But the main problem is to bring back confidence among investors. It should be the main focus now,” said Akter Hossain Sannamat, managing director of Prime Finance and Investment.
Others say coordinated measures from the government, the regulator and stakeholders can help the market overcome the current situation.
Angry investors said they had no option but to take to the streets to see their capital shrink in the last few days.
“My portfolio value has come down to almost zero. It is driving me crazy,” said a bewildered Shipon Chowdhury, who lost Tk 5 lakh in the last two days.
Many others said they now want the prime minister’s intervention as the measures taken by the regulator have failed to have a grip on the volatile market.
The DSE said the government should punish the persons involved in the stockmarket manipulation.
DSE President Shakil Rizvi said the government has little to do with the share prices that depend on many other variables. But it can punish anyone for violating the law.
“A crisis has arisen for diversion of funds from the market. But the market will rebound soon,” he said.
Within the five minutes, the premier bourse traded more than 58.76 lakh shares and mutual fund units on a value of Tk 68 crore. Losers outnumbered gainers 172 to 8, with two securities remaining unchanged on the DSE.
Meanwhile, small investors called a dawn-to-dusk hartal in Sylhet for Sunday to protest the recent fall in prices on the DSE, reports UNB.
Mashiur Rahman, Prime Minister Sheikh Hasina’s economic affairs adviser, however, was highly critical of the street demonstration by the investors following nosedive of share prices urging all to resist them.
When pointed to the drastic fall, he said there is a pressure on the market, as some investors want windfall gain overnight.
Mashiur was speaking to reporters after inaugurating a flood protection project in Khulna.
According to him, the money pulled in the share market never came to the real investment in the industry.
“So there is no immediate impact of it,” the news agency quoted him as saying.

Via: The Daily Star

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