Dhaka, Bangladesh (BBN) – Dhaka stocks returned to the red on Monday with most share prices registering fall despite a couple of decisions, including waiver of 50 percent interests on margin loans, to help the affected retail investors to recoup their losses.
The market opened with a positive note gaining more than 30 points within five minutes upon resumption of day’s trading. After that it started to decline and fall steadily throughout the session and finally ended the day 192 points lower.
The benchmark general index of Dhaka Stock Exchange (DGEN), the main gauge of the market, slipped 192.45 points or 4.20 percent to close at 4,385.22. This was also the largest single day fall for DGEN in the last one month.
The broader All Shares Price Index (DSI) plunged 156.34 points or 4.08 percent to close at 3,674.02. The DSE-20 Index comprising blue-chip shares also lost 85.59 points or 2.35 percent to close at 3,552.53.
The market analysts said the merchant banks and brokerage houses might have created sale pressure on the day considering declared interest waiver as their burden which created panic among the general investors.
On Sunday, the government announced that the small investors, affected during the 2010-11 share market debacle, will get waiver of 50 per cent interest on their respective margin loans, taken between January 2009 and November 2011 from merchant banks and brokerage houses.
Some said the big invertors might have created sale pressure as they were not included in the compensation package which made the general investors panicked.
“The traders sold out shares in large volume as the investors tried to assess the impact of the declared compensation package,” commented LankaBangla Securities in its daily market observation.
Heavy volume sale indicates that sellers were active as they wish to assess volatility of the market, it added.
Meanwhile, a large number of investors thronged their respective brokerage houses to know the procedure of interest waiver following the finance minister’s announcement.
The turnover value, however, increased slightly and stood at BDT 3.04 billion against BDT 2.73 billion in the previous session.
Almost all shares lost in prices, as out of 255 issues traded, 239 declined, only 10 advanced and six remained unchanged.
A total of 69.78 million shares changed hands on the day against 65.13 million in the previous session. The trade deals also increased to 105,301 against Sunday’s 94,333.
The total market capitalization of the DSE stood at BDT 2,305.08 billion against BDT 2,377.52 billion in the previous session.
All the major sectors lost in prices on the day, with non-banking financial institutions (NBFIs) lost the most which declined 5.64 percent and banks lost 4.28 per cent.
Fuel and power sector lost 3.87 percent, while pharmaceuticals 3.21 per cent and telecommunications 3.07 per cent.
Beximco Limited topped the turnover chart with shares worth BDT 168.80 million changed hands.
The other turnover leaders were GP, United Airways, Summit Power, Peoples Leasing, RN Spinning, NBL, Singer BD, ONE Bank and Jamuna Oil.
Only 10 issues gained on the day and Singer BD was the day’s highest gainer posting a rise of 4.83 percent.
The day’s worst losers included Rupali Life Insurance, Apex Foods, Samorita Hospital, Global Insurance, Union Capital, Singer BD, FAS Finance, IPDC, Premier Leasing and Rupali Bank.
Meanwhile, at the Chittagong Stock Exchange (CSE), the key index -CSCX – lost 320.19 points to close at 8106.83 points, down from Sunday’s 8427.02 points having a turnover of BDT 430 million. Of the 188 issues traded, 15 advanced 171 declined and 2 remained unchanged.
BBN/BB/SI-06Mar12-7:30 am (BST)
