FE Report (October 11, 2010)
Stocks suffered Sunday the second biggest single-day price erosion in the history of the Dhaka Stock Exchange (DSE), a day after the heads of the country's bourses warned the investors of a possible collapse.
The process of decline got yet another boost as soon as the news that Supreme Court has vacated a High Court stay order on securities regulator's directive relating margin loan hit the market, dealers said.
The benchmark DSE General Index (DGEN) plummeted by 187.79 points -- its second highest single-day drop since November 2001, when it was launched-- to close at 7292.54. The Sunday's drop is 2.51 per cent lower than the all-time-high decline.
The broader All Shares Price Index (DSI) shed 2.51 per cent or 156.64 points to 6067.49. The DSE-20 Index comprising blue chips lost 2.10 per cent or 92.70 points to 4314.34.
The market fell across the board as share prices of more than 90 per cent issues closed in the negative terrain. Out of the 240 securities traded, 212 lost, only 25 advanced and three remained unchanged.
"The warning from the bourses coupled with the SC rule sent the market into the tailspin," said a stockbroker.
On Saturday, the DSE and CSE in a joint press briefing rang the warning bell saying the collapse of the market was not far off.
On Sunday, the SC vacated a three-month stay-order issued by HC bench on September 27 after the two investors filed writ petition challenging the Securities and Exchange Commission's directive on share credit and 'trigger sale'.
Moin Al-Kashem, managing director of the PF Asset Management Company, said, "After a long rally, correction was inevitable."
"But the correction came in the form of panic-sale as the investors reacted negatively to the news, pushing the market to tumble," said a stock dealer.
Non-banking financial institutions was the top losing sector, down by 3.60 per cent, followed by telecommunications 3.40 per cent, IT 3.09 per cent and fuel and power 2.56 per cent.
Turnover clocked at Tk 23.64 billion, down by 18 per cent from previous session's all time high of Tk 28.0 billion.
Premier Bank, a private-commercial bank, topped the turnover leader with shares worth Tk 997.69 million changing hands.
It was followed by Peoples Leasing, Premier Bank, Exim Bank, Beximco Ltd, United Commercial Bank Ltd, Prime Finance, Lanka Bangla Finance, Square Pharmaceuticals and AB Bank.
Fuwang Ceramics had the highest gain of 15.10 per cent after the company received green signal from the Securities and Exchange Commission (SEC) to issue one rights share for every existing two shares.
It was followed by EXIM Bank, First Security Bank, Premier Bank, Standard Bank, Beximco Synthetic, Kohinoor Chemicals, Social Investment Bank and Fu-Wang Food.
The leading losers included Imam Button, AIMS First Mutual Fund, Keya Cosmetics, Dhaka Fisheries, Continental Insurance, Bangladesh Autocars, Agrani Insurance, Standard Insurance and National Housing Finance and Investment Limited.
Stocks suffered Sunday the second biggest single-day price erosion in the history of the Dhaka Stock Exchange (DSE), a day after the heads of the country's bourses warned the investors of a possible collapse.
The process of decline got yet another boost as soon as the news that Supreme Court has vacated a High Court stay order on securities regulator's directive relating margin loan hit the market, dealers said.
The benchmark DSE General Index (DGEN) plummeted by 187.79 points -- its second highest single-day drop since November 2001, when it was launched-- to close at 7292.54. The Sunday's drop is 2.51 per cent lower than the all-time-high decline.
The broader All Shares Price Index (DSI) shed 2.51 per cent or 156.64 points to 6067.49. The DSE-20 Index comprising blue chips lost 2.10 per cent or 92.70 points to 4314.34.
The market fell across the board as share prices of more than 90 per cent issues closed in the negative terrain. Out of the 240 securities traded, 212 lost, only 25 advanced and three remained unchanged.
"The warning from the bourses coupled with the SC rule sent the market into the tailspin," said a stockbroker.
On Saturday, the DSE and CSE in a joint press briefing rang the warning bell saying the collapse of the market was not far off.
On Sunday, the SC vacated a three-month stay-order issued by HC bench on September 27 after the two investors filed writ petition challenging the Securities and Exchange Commission's directive on share credit and 'trigger sale'.
Moin Al-Kashem, managing director of the PF Asset Management Company, said, "After a long rally, correction was inevitable."
"But the correction came in the form of panic-sale as the investors reacted negatively to the news, pushing the market to tumble," said a stock dealer.
Non-banking financial institutions was the top losing sector, down by 3.60 per cent, followed by telecommunications 3.40 per cent, IT 3.09 per cent and fuel and power 2.56 per cent.
Turnover clocked at Tk 23.64 billion, down by 18 per cent from previous session's all time high of Tk 28.0 billion.
Premier Bank, a private-commercial bank, topped the turnover leader with shares worth Tk 997.69 million changing hands.
It was followed by Peoples Leasing, Premier Bank, Exim Bank, Beximco Ltd, United Commercial Bank Ltd, Prime Finance, Lanka Bangla Finance, Square Pharmaceuticals and AB Bank.
Fuwang Ceramics had the highest gain of 15.10 per cent after the company received green signal from the Securities and Exchange Commission (SEC) to issue one rights share for every existing two shares.
It was followed by EXIM Bank, First Security Bank, Premier Bank, Standard Bank, Beximco Synthetic, Kohinoor Chemicals, Social Investment Bank and Fu-Wang Food.
The leading losers included Imam Button, AIMS First Mutual Fund, Keya Cosmetics, Dhaka Fisheries, Continental Insurance, Bangladesh Autocars, Agrani Insurance, Standard Insurance and National Housing Finance and Investment Limited.
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