Dhaka, Bangladesh (BBN) – Dhaka stocks fell last week with declining turnover value filing with more writ petitions against mandatory share-holding by sponsor-directors.
“The Dhaka stocks dropped for another week as the sponsors-director’s writ petitions dejected the investors’ sentiment sharply,” LankaBangla Securities said in its weekly analysis.
But, the High Court (HC) has not given any stay order on SEC’s directive.
The market witnessed significant correction—Tuesday and Wednesday—as writ petitions frightened the sensitive investors. But the last session, it recovered 175 points following the news of withdrawal of one the writs.
Market insiders said that investors’ confidence deteriorated as some of sponsor-directors filed three writ petitions last week against the SEC’s directive to hold mandatory two per cent shares. However, one of the petitioners withdrew the writ on Thursday.
The week witnessed four trading sessions instead of five as Sunday was government holiday on account of Budhha Purnima. Among those, two sessions lost 266 points while two sessions gained 142 points.
In the week, the DSE General Index (DGEN) lost 84.60 points or 1.64 per cent to close at 5,076.63.
The broader All Shares Price Index (DSI) slipped 70.54 points or 1.63 percent to close at 4,267.14. The DSE-20 Index comprising blue-chip shares also lost 45.48 points or 1.16 percent to close at 3,859.36.
The total turnover value stood at BDT 15.40 billion in the week compared to BDT 18.14 billion in the previous week.
The average daily turnover value came down to BDT 3.84 billion which was 15.12 percent lower compared to BDT 4.53 billion in the previous week, the DSE data showed.
Out of the 274 issues traded in the week, 184 declined, 78 advanced and 12 remained unchanged.
Companies continued to make their corporate declarations for the year ended on December 31, 2011.
The market capitalization of the DSE also declined by 1.55 percent in the week, as it was BDT 2,685.01 billion on the opening day of the week, and at the end of the week it stood at BDT 2,643.14 billion.
Food and allied, cement and general insurance were only gaining sectors that gained 1.20 percent, 0.65 percent, and 0.39 percent respectively.
Among the major sectors fuel and power lost 4.35 per cent, telecommunications 3.65 per cent, non-banking financial institutions (NBFIs) 2.00 percent, pharmaceuticals 1.07 percent, while banks lost marginally by 0.50 percent.
LankaBangla Finance continued to top the week’s turnover chart with shares worth BDT 1.14 million changing hands.
The other turnover leaders were GP, Jamuna Oil, Meghna Petroleum, Beximco Limited, City Bank, Titas Gas, Square Pharma, Beximco Pharma and GPH Ispat.
Pioneer Insurance was the week’s top gainer, posting a rise of 12.32 percent followed by Heidelberg Cement, Peoples Insurance, Global Insurance, Nitol Insurance, National Tea, Al-Arafah Islami Bank, Paramount Insurance, Prime Insurance and Midas Financing.
The week’s worst losers included Renata, Takaful Insurance, RAK Ceramics, BSC, MBL First Mutual Fund, Northern Jute Manufacturing, Dhaka Insurance, Titas Gas, Aramit Cement and AB Bank First Mutual Fund.
BBN/SSR/AD-12May12-10:10 am (BST)
