New Age - 7 October'2010 Thursday
Gazi Towhid Ahmed
Share prices at the Dhaka Stock Exchange continued to surge on Wednesday for the straight tenth trading day as investors picked up share trading defying market ‘cooling’ measures taken by the regulators, market experts and operators said.
The rally has lured investors to inject fresh funds into the market and the non-stop rise in share prices has also drawn fresh investors to the market, they said.
Stock market operators and experts, however, expressed concerns that the market had become highly risky for investors and warned of a sharp correction anytime soon.
The general index of DSE gained 85.29 points, or 1.16 per cent, to close at 7,412.60 points, refreshing its all-time high, on Wednesday. The bourse’s benchmark index gained 508.52 points from September 23 to October 6.
‘We have no plan to take fresh step to reign in the surge at the market,’ SEC executive director Anwarul Kabir Bhuiyan told New Age on Wednesday.
The Securities and Exchange Commission issued a number of directives and orders to stock exchanges and merchant bankers in recent weeks to control the surging market.
On Monday, the SEC asked stockbrokers to submit daily trading details of investors who trade shares worth Tk 1 crore or above.
On September 28, the stock market regulator directed the DSE to submit the list of top ten clients of every brokerage house.
It also asked stockbrokers to submit the copy of buy and sell orders, holding reports, financial ledgers of last one week, portfolio statement and trading summary.
Market experts observed that the SEC took the steps to check market surge, but share prices of securities continued rising heavily without any price sensitive information from most of the companies.
The SEC on Tuesday directed the DSE to delist Apex Weaving and Finishing Mills, Dhaka Fisheries, Monno Fabrics and Padma Cement from the main bourse and send them to over-the-counter market, a platform of junk share trading, with effect from October 20 as the share prices of companies increased abnormally in recent times although their operations had remained suspended.
The SEC earlier sent 25 companies into the OTC market on October 1 after they failed to convert their paper shares into electronic shares.
Dhaka stocks returned to a record-breaking bull run from September 27 after the High Court stayed for three months the SEC’s directive on forced selling of shares if any investor failed to adjust margin loans by September 30. The court also halted the new system on calculating earning per share introduced by the SEC.
DSE president Shakil Rizvi said, ‘We are worried about the current market situation.’
He also issued warning for the general investors that a price correction was imminent.
The government should take steps to increase supply of shares to the market for its healthy growth, he added.
The broader DSE all shares price index gained 80.26 points, 1.32 per cent, to finish at 6,170.80 points on Wednesday.
The daily turnover the bourse stood Tk 2,436.54 crore, up by Tk 339.25 crore from the previous trading day.
Of the total 253 issues traded on the day, 166 advanced, 75 declined and one remained unchanged.
Peoples Leasing and Financial Services topped the turnover leaders with 38.10 lakh shares valued at Tk 90.74 crore traded on the day.
The other turnover leaders were Prime Finance and Investment, Square Textile, Beximco, BSRM Steels, RN Spinning Mills, Square Pharmaceuticals, BATBC, LankaBangla Finance and Titas Gas.
Aims First Mutual Fund was the day’s biggest gainer posting a rise of 19.97 per cent in its share price while Apex Weaving was the worst loser on the day
Gazi Towhid Ahmed
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The rally has lured investors to inject fresh funds into the market and the non-stop rise in share prices has also drawn fresh investors to the market, they said.
Stock market operators and experts, however, expressed concerns that the market had become highly risky for investors and warned of a sharp correction anytime soon.
The general index of DSE gained 85.29 points, or 1.16 per cent, to close at 7,412.60 points, refreshing its all-time high, on Wednesday. The bourse’s benchmark index gained 508.52 points from September 23 to October 6.
‘We have no plan to take fresh step to reign in the surge at the market,’ SEC executive director Anwarul Kabir Bhuiyan told New Age on Wednesday.
The Securities and Exchange Commission issued a number of directives and orders to stock exchanges and merchant bankers in recent weeks to control the surging market.
On Monday, the SEC asked stockbrokers to submit daily trading details of investors who trade shares worth Tk 1 crore or above.
On September 28, the stock market regulator directed the DSE to submit the list of top ten clients of every brokerage house.
It also asked stockbrokers to submit the copy of buy and sell orders, holding reports, financial ledgers of last one week, portfolio statement and trading summary.
Market experts observed that the SEC took the steps to check market surge, but share prices of securities continued rising heavily without any price sensitive information from most of the companies.
The SEC on Tuesday directed the DSE to delist Apex Weaving and Finishing Mills, Dhaka Fisheries, Monno Fabrics and Padma Cement from the main bourse and send them to over-the-counter market, a platform of junk share trading, with effect from October 20 as the share prices of companies increased abnormally in recent times although their operations had remained suspended.
The SEC earlier sent 25 companies into the OTC market on October 1 after they failed to convert their paper shares into electronic shares.
Dhaka stocks returned to a record-breaking bull run from September 27 after the High Court stayed for three months the SEC’s directive on forced selling of shares if any investor failed to adjust margin loans by September 30. The court also halted the new system on calculating earning per share introduced by the SEC.
DSE president Shakil Rizvi said, ‘We are worried about the current market situation.’
He also issued warning for the general investors that a price correction was imminent.
The government should take steps to increase supply of shares to the market for its healthy growth, he added.
The broader DSE all shares price index gained 80.26 points, 1.32 per cent, to finish at 6,170.80 points on Wednesday.
The daily turnover the bourse stood Tk 2,436.54 crore, up by Tk 339.25 crore from the previous trading day.
Of the total 253 issues traded on the day, 166 advanced, 75 declined and one remained unchanged.
Peoples Leasing and Financial Services topped the turnover leaders with 38.10 lakh shares valued at Tk 90.74 crore traded on the day.
The other turnover leaders were Prime Finance and Investment, Square Textile, Beximco, BSRM Steels, RN Spinning Mills, Square Pharmaceuticals, BATBC, LankaBangla Finance and Titas Gas.
Aims First Mutual Fund was the day’s biggest gainer posting a rise of 19.97 per cent in its share price while Apex Weaving was the worst loser on the day
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