FE Report
Stocks witnessed sharp decline Sunday, the first trading day after the budget announcement as budgetary expectations neutralized.
The General Index of the DSE ended at 4,133.60 points, shedding 167.14 points or 3.88 per cent as the market knew only one direction throughout the day without facing any resistance.
The other two indices also went down steeply --- the DSEX went down by 145.31 points or 3.60 per cent to close at 3,882.81 while the blue chip index DS30 lost 56.82 points or 3.78 per cent to close at 1,443.90 points.
The Chittagong Stock Exchange (CSE) also plunged with the Selective Categories Index lost 286.69 points to close at 7,640.64 points.
Meanwhile, a group of investors took to the street and staged demonstration in front of the DSE building protesting against the share price fall.
They expressed their dissatisfaction over the proposed budget as the budget falls short of their expectation. "We expected a special fund in the budget, but there are no major benefits for the small investors in the proposed budget," said Md Rasel, an investor.
The total turnover on DSE declined significantly to Tk 4.31 billion which was 31.70 per cent lower compared to Tk 6.31 billion in the previous session.
"Reversal resumed as budgetary expectation neutralized. Apparently, proposed budget for FY 2013-14 falls short of investors' expectation," commented IDLC Investments, in its daily market analysis..
As a result, psychologically investors couldn't rely upon holding scrips which saw sky rocketing trend during last few weeks broadly due to national budget for FY 2013-14, said the merchant bank.
"Turnover also declined significantly from previous session as investors largely followed 'Buy on Rumor, Sell on News' strategy during recent trend," the IDLC analysis added.
"With the cluster of negativity suddenly showing strong signs to prevail, the market needs to recover its liquidity as quickly as possible," stated Zenith Investments.
"As the sell pressures kept coming in creating steep fall throughout the day's session, the volume also dipped rapidly that might encourage investors to take positions in the upcoming sessions as a number of scrips still remain to be undervalued," said the Zenith analysis.
However, with the strike coming in during the next trading session, it would be rather difficult for early turnover improvement which is much needed to restore investors' confidence, it added.
The losers took a strong lead over the gainers as out of 281 issues traded, 256 declined, only 16 advanced and six remained unchanged in the primer bourse.
All the heavyweight sectors experienced significant fall in market value along with drying up of liquidity. A sum of 75 out of 281 traded scrips lost more than 5.0 per cent.
Telecommunications was the biggest loser which lost 5.32 per cent, closely followed by NBFIs which retraced 5.30 per cent. Banks and fuel and power were down by 3.87 per cent and 3.33 per cent respectively. Pharmaceuticals also lost 2.16 per cent.
A total of 0.120 million trades were executed in the day's trading with 119.69 million securities of trading volume. The market capitalization on the DSE stood at Tk 2,401.38 billion against Tk 2,472.08 billion in the previous session.
Unique Hotel and Resorts became the turnover leader with shares worth Tk 266.63 million changing hands followed by BSCCL, United Airways, GP and Meghna Petroleum.
National Housing Finance and Investments was the day's highest gainer, posting a rise of 9.91 per cent while Jute Spinners was the day's worst loser, slumping by 9.84 per cent
Stocks witnessed sharp decline Sunday, the first trading day after the budget announcement as budgetary expectations neutralized.
The General Index of the DSE ended at 4,133.60 points, shedding 167.14 points or 3.88 per cent as the market knew only one direction throughout the day without facing any resistance.
The other two indices also went down steeply --- the DSEX went down by 145.31 points or 3.60 per cent to close at 3,882.81 while the blue chip index DS30 lost 56.82 points or 3.78 per cent to close at 1,443.90 points.
The Chittagong Stock Exchange (CSE) also plunged with the Selective Categories Index lost 286.69 points to close at 7,640.64 points.
Meanwhile, a group of investors took to the street and staged demonstration in front of the DSE building protesting against the share price fall.
They expressed their dissatisfaction over the proposed budget as the budget falls short of their expectation. "We expected a special fund in the budget, but there are no major benefits for the small investors in the proposed budget," said Md Rasel, an investor.
The total turnover on DSE declined significantly to Tk 4.31 billion which was 31.70 per cent lower compared to Tk 6.31 billion in the previous session.
"Reversal resumed as budgetary expectation neutralized. Apparently, proposed budget for FY 2013-14 falls short of investors' expectation," commented IDLC Investments, in its daily market analysis..
As a result, psychologically investors couldn't rely upon holding scrips which saw sky rocketing trend during last few weeks broadly due to national budget for FY 2013-14, said the merchant bank.
"Turnover also declined significantly from previous session as investors largely followed 'Buy on Rumor, Sell on News' strategy during recent trend," the IDLC analysis added.
"With the cluster of negativity suddenly showing strong signs to prevail, the market needs to recover its liquidity as quickly as possible," stated Zenith Investments.
"As the sell pressures kept coming in creating steep fall throughout the day's session, the volume also dipped rapidly that might encourage investors to take positions in the upcoming sessions as a number of scrips still remain to be undervalued," said the Zenith analysis.
However, with the strike coming in during the next trading session, it would be rather difficult for early turnover improvement which is much needed to restore investors' confidence, it added.
The losers took a strong lead over the gainers as out of 281 issues traded, 256 declined, only 16 advanced and six remained unchanged in the primer bourse.
All the heavyweight sectors experienced significant fall in market value along with drying up of liquidity. A sum of 75 out of 281 traded scrips lost more than 5.0 per cent.
Telecommunications was the biggest loser which lost 5.32 per cent, closely followed by NBFIs which retraced 5.30 per cent. Banks and fuel and power were down by 3.87 per cent and 3.33 per cent respectively. Pharmaceuticals also lost 2.16 per cent.
A total of 0.120 million trades were executed in the day's trading with 119.69 million securities of trading volume. The market capitalization on the DSE stood at Tk 2,401.38 billion against Tk 2,472.08 billion in the previous session.
Unique Hotel and Resorts became the turnover leader with shares worth Tk 266.63 million changing hands followed by BSCCL, United Airways, GP and Meghna Petroleum.
National Housing Finance and Investments was the day's highest gainer, posting a rise of 9.91 per cent while Jute Spinners was the day's worst loser, slumping by 9.84 per cent
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