Dhaka, Bangladesh (BBN) – Dhaka stocks went to negative territory this week with substantially declining turnover despite the government announced of 50 percent interest waiver on margin loan to help the affected retail investors recoup their loss.
Market analysts said interest waiver on margin loan of the small investors and special quota for them in IPOs virtually failed to uplift the market sentiment, as the big investors were not included in the package.
On Sunday, the finance minister announced that the small investors, who suffered loss during the 2010-11 stock market crash, will get 50 percent interest waiver on their margin loan and 20 percent IPO quota for them to be issued in 2012 and 2013.
The government also decided to give them a chance to pay the remaining 50 percent of the interest through quarterly instalments in next three years.
In the week, the DSE General Index (DGEN), the yardstick of the market slipped 208.75 points or 4.58 percent to close at 4,345.01.
The broader All Shares Price Index (DSI) lost 116.28 points or 4.36 percent to close at 3,644.46. The DSE-20 Index comprising blue-chip shares also declined 86.58 points or 2.40 percent to close at 3,523.25.
Total turnover value for the week stood at BDT 11.43 billion compared to BDT 24.0 billion in the previous session, indicating cautious, apprehensive trading by the investors and absence of institutional investors.
Average daily turnover this week was BDT 2.28 billion which is 52.4 percent lower than last week’s average daily turnover value of BDT 4.80 billion.
All major sectors lost in the week. Banks and non-banking financial institutions (NBFIs) were the biggest losers and lost more than 6.0 percent each while pharmaceuticals and fuel and power lost nearly 2.75 percent each.
Beximco Limited topped the week’s turnover chart with shares worth BDT 577.57 billion changing hands.
Pragati Insurance was the week’s top gainer posting a rise of 8.89 percent while Prime Finance was the week’s worst loser.
BBN/SSR/AD-09Mar12-8:44 pm (BST)