Stocks face fresh slump

Dhaka stocks faced fresh slump last working of the week following more than 3 per cent fall the benchmark index on panic selling. The market saw a dreary trade as most preferred to stay aloof from investment. The DSE General Index (DGEN) closed at 5800.93 with a sharp fall of 3.61 per cent or 217 points, sinking to the lower in the week.  The successive three-day fall chipped away about 600 points from the previous two-day rise of more than 800 points aided by the emergency fund of the government to rescue the market from the continuous debacle.  The market opened on a negative note, but as the day progressed there was a panic selling pressure despite government move to prop up the market, said a stock broker. Most of the major sectors closed in the negative territory. Grameenphone—the most weighted share in DSE and lone listed company in the telecommunications sector – was the worst losing sector that declined 5.81 per cent.   Bank stocks fell by 3.52 per cent, non-banking financial institutions 4.36 per cent and energy 4.26 per cent.   The market breadth was also negative as out of 249 issues traded, 16 rose, 231 lost and two remained unchanged. Turnover continued to decline at an alarming rate as it stood at Tk 5.6 billion, down by 2.5 per cent.

“Continued decline in the trade volume reflects that investors were seeking exit routes, indicating a bad sign for the market,” said a fund manager. Peoples Leasing, a leading non-banking financial institutions, was the top turnover leader with shares worth Tk 300 million being traded. 

Other turnover leaders were Bextex, Beximco Ltd, Prime Finance, National Bank Ltd, Union Capital, Titas Gas, LankaBangla Finance and Bay Leasing.  National Bank Limited was the largest loser of 53.85 per cent following adjustment of its dividend. Other losers were Legacy Footwear, Anlima Yarn, Safko Spinning, Tallu Spinning, CMC Kamal, Popular Life Insurance and Aziz Pipes.

Opening new branch of brokerage banned 

The securities regulator has banned opening new branches of brokerage houses considering the present market situation, said an official on Thursday.   The Securities and Exchange Commission has asked the country’s twin bourses not to open any new branch offices from now on. Opening of new branch offices of brokerage firms has been banned because the Dhaka Stock Exchange and Chittagong Stock Exchange failed to introduce uniform software within time frame, said an official. He said the commission will allow after installing uniform software. On October 4, 2010, the SEC had decided not to allow opening new branch offices of the brokerage firm at the district level.