The general index of Dhaka Stock Exchange ended the just-concluded fiscal year flat because of the massive volatility in the second half, although it had posted a 100 per cent growth in FY2009-2010.
The DGEN, which stood at 6,153.68 points on June 30, 2010, closed slightly lower at 6,117.23 points on Thursday, the last day of FY2010-2011, despite listing of 19 companies and mutual funds in the year.
The DGEN in FY2009-2010 had swelled by more than 3,143.41 points, or 104.42 per cent. The index stood at 3,010.26 points on June 30, 2009.
Share-trading in the just-concluded fiscal year began upbeat on the DSE floor with a huge number of investors flocking to different brokerages as both government high-ups and leaders of the bourse called upon people to invest in the market.
The growth of DGEN was robust in the first half of the FY2010-2011 reaching 8,918.51 points and the turnover of the bourse crossing Tk 3,200 crore mark on December 5.
A number of decisions of the central bank capping the lending rate of banks at 13 per cent and allowing banks more time to cut their overexposure in the capital market helped the stock prices to swell.
The stock prices, however, had begun to tumble since mid-December following the Bangladesh Bank moves to increase the banks' statutory liquidity ratio and cash reserve requirement and to reduce their exposure in the stock market.
When banks and other institutional investors rushed to sell shares making hefty profits, the DGEN crashed as panic spread among the general investors.
Angry investors took to the street as the DGEN took a 600-point plunge in five minutes on January 20, following massive slides in the previous few days.
Although the market started to rebound slightly from mid-March, it began to slide again as uncertainty spread about implementation of the recommendations of a probe committee on the January's stock market debacle.
The government changed the high-ups of the Securities and Exchange Commission including its chairman as the commission was also held responsible for its failure to avert the market crash.
The bearish run in the market had continued till the day before the passage of the national budget on Wednesday. Investors are now hoping that the market would rebound as the government has allowed investment of undisclosed money in the capital market by paying a 10 per cent tax.
A number of investors told New Age that they were still in losses because of the bear run that had begun in December. 'So far, I have lost almost 50 per cent of my Tk 10 lakh investment because of the last six months of market debacle,' said Sohel Rana, an official at a private enterprise.
Market operators said the investors who had entered the market in November-December, when the share prices peaked, were the worst losers.
The market capitalisation of the DSE increased to Tk 2,85,389.22 crore on Thursday from Tk 2,70,074.45 crore on June 30, 2010 because of the listing of 19 companies and mutual funds in the just-concluded year.
The DSE's market capitalisation, however, increased to as high as Tk 3,68,071.42 crore on December 5, 2010.
Source : New Age
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