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Weekly Market Review
J a n u a r y 2 3, 2 0 1 4
DSEX & DS30 reorganized
The Dhaka Stock Exchange (DSE) on January 19, 2014
restructured two price indices DSEX and DS-30 in accordance
with the DSE Bangladesh Index Methodology designed and
developed by Standard and Poor's (S&P). Earlier the DSE on
January 28, 2013 introduced two new indices DSE Broad
Index (DSEX) and DSE-30 Index (DS30) on the basis of freefloat method. DSEX replaced the DSE General Index (DGEN)
while DS-30 replaced the DSE-20 index. To meet the eligibility
criteria of DSEX each of the stocks must have above Tk100m
float-adjusted market capitalization along with Tk1m six-month
Average Daily Value Traded (ADVT) as of the rebalancing
reference date. Additionally, the eligible stocks are required to
trade at least half of normal trading days each month for the
three months prior to the rebalancing reference date. The
index will be rebalanced once in a year based on year-end
closing. On the other hand, the DS30 index will be
reconstituted twice in a year based on half-yearly trading
performance. Stocks having Tk500m float-adjusted market
capitalization, Tk5m three-month ADVT and positive net
income based on latest four quarters report as of the
rebalancing reference date would be eligible for this selective
index. The number of constituents from the banks, financial
institutions, insurance sector and real estate sub-sector is
limited at 5 each and 10 combined for the DS30 index. Twenty
three new companies Fareast Finance, Eastern Cables,
Renwick Jajneswar, National Tubes, Bengal Windsor
Thermoplastics, Bangladesh Building Systems, AMCL (Pran),
Rahim Textile, Ambee Pharma, The Ibn Sina, Libra Infusions,
Global Heavy Chemicals, JMI Syringes and Medical Devices,
Central Pharmaceuticals, Hakkani Pulp and Paper, Samorita
Hospital, Information Services Network, Purabi General
Insurance, Pragati Insurance, Prime Insurance, Sunlife
Insurance, Usmania Glass and Berger Paints has been
included in the DSEX. With the latest inclusion total number of
companies in the DSEX stand at 226. On the other hand, four
existing companies Kay & Que, Midas Finance, CVO
Petrochemical and Rahima Food were adjudged disqualified
to remain under the index. DSE at the same time has qualified
four new companies United Commercial Bank, Delta Life
Insurance, Orion Pharma and Renata to join the DS30 index
following the criteria developed by S&P. The companies to be
excluded from this blue-chip index are Beximco, Khulna Power
Company, Square Textiles and Southeast Bank.
Shariah Index launched
The Dhaka Stock Exchange (DSE) introduced a new index‘DSEX Shariah Index’ (DSES) on January 20, 2014. Listed
companies which qualify on the basis of Islamic Shariah are
included in the index. The base point of the index is 1,000.
Following the standards 77 companies of different sector have
been chosen for the Shariah index but their names has not
been publicly without disclosed. It has been designed &
developed with assistance from the Standard and Poor's
(S&P). The index will be rebalanced on monthly basis as per
the annual reports. Listed companies under the bourses key
index, DSEX, would be eligible for the Shariah index after
fulfilling the required conditions. However, exclusion from
DSEX will automatically exclude a company from the DSEX
Shariah Index.
755th Issue
Year 16 No. 11
Banks to maintain CRR & SLR separately
Bangladesh Bank (BB) has moved to ensure maintenance of
the Cash Reserve Requirement (CRR) and the Statutory
Liquidity Ratio (SLR) separately by the commercial banks
aiming to facilitate effective implementation of its monetary
policy. BB issued a directive in this regard under the Bank
Company (Amended) Act 2013, asking all banks to maintain
the CRR and SLR separately in a new prescribed format from
February 01, 2014. The day-end balance of the account
maintained with BB in the Bangladesh Taka is considered as
the CRR. According to the rules, banks are allowed to
maintain the CRR at 5.50% on daily basis of the average total
demand and time liabilities (ATDTL), but the bi-weekly
average has to be 6% of the same ATDTL. Every schedule
banks has to maintain the SLR in the form of assets in cash or
gold or in the form of un-encumbered approved securities, the
market value of which shall not be less than such portion of its
total demand and time liabilities as prescribed by the central
bank from time to time. From February 01, 2014, conventional
banks will have to maintain SLR at 13% daily while the
Shariah-based Islamic banks and Islamic Shari'ah-based
banking of conventional banks will have to maintain 5.50%
SLR of their average total demand and time liabilities. For the
purpose of maintenance of CRR and SLR, demand and time
liabilities will include all on-balance sheet liabilities excluding
paid-up capital and reserves; loans taken from BB; credit
balance in profit and loss account; inter-bank items; repo,
special repo and any kind of liquidity support taken from the
central bank. The banks will have to submit the monthly
statements of maintenance of the CRR and the SLR in the
newly prescribed formats to the Department of Off-site
Supervision (DOS) within the 10th of the following month.
Penal interest (bank rate plus 5%) and penalty will be charged
according to the instructions of Bangladesh Bank Order, 1972
and the DOS directive for CRR related issues. On the other
hand, penalty will be charged at the prevailing special repo
rate on the amount by which the SLR falls short daily.
NSE India ranked top globally
The National Stock Exchange (NSE) of India retained its
position as the world's largest bourse among 51 peers in
terms of number of equity trades for the second consecutive
year in 2013, according to World Federation of Exchanges
(WFE). Shenzhen Exchange of China overtook the New York
Stock Exchange (NYSE) as the second largest bourse.
Another Chinese bourse, the Shanghai Stock Exchange,
moved up to fourth place from sixth in 2012, while the Nasdaq
dropped two places to fifth. Others in the top 10 include Korea
Exchange (6th), Japan Exchange Group-Tokyo (7th), BSE,
India (8th), Canada's TMX Group (9th) and London SE Group
(10th).
Lock-in relaxed for bonds
In order to make the bond market vibrant and attractive the
government has withdrawn the one-year lock-in period existing
for foreign investors. Earlier the Bangladesh Government
Treasury Bonds (BGTBs) purchased by a foreign investors or
Non-Resident Bangladeshi (NRB) could not be resold within
one year of purchase. Removal of the cap would generate
overseas interest on the local bonds, it is expected. Foreign
investors, particularly institutions, have invested around Tk9b
in BGTBs since April 2013 through Standard Chartered Bank.
ASSET & INVESTMENT MANAGEMENT SERVICES OF BANGLADESH LIMITED
Unique Trade Center (UTC), Level 6 (SW), 8 Panthopath, Karwan Bazar, Dhaka 1215, Bangladesh
Tel : +(880-2) 913 6432–4 (Three Lines), Fax : +(880-2) 913 6162–3 (Two Lines)
e-mail : hello@aims-bangladesh.com; web: http://www.aims-bangladesh.com
The week’s data runs 16 January to 23 January 2014
Stock Market Movement
This Week Last Week +/- % PE
1790.29
1838.70
-2.63
18.4
6663.74
6829.30
-2.42
14.5
15391.56 15734.46
-2.18
16.6
21133.56 21063.62
0.33
15.1
27002.89 26913.85
0.33
12.9
This Week
Last Week +/- %
4702.66
4519.36
4.06
36,983,350,701 26,067,607,206 41.87
2,264,529,015,053 2,176,121,356,319
4.06
217
216
74
72
8
10
Global Markets
S&P 500
FTSE 100
Nikkei 225
SENSEX
KSE 100
DSE Indicators
DSE Broad Index
Total Turnover, Tk
Market Capital, Tk
No of Issue Gain
No of Issue Loss
No of Unchanged Issues
Top Gainers
Weighted avg. Closing Price (Tk)
Last
Week
Company
ICB AMCL Islamic MF
IPDC
IFIL Islamic MF
18.60
20.00
6.10
108.90
122.00
120.90
105.70
42.50
5.90
5.60
Prime Islami Life Ins.
Progressive Life Ins.
Meghna Life Ins.
Dutch Bangla Bank
Northern Gen. Ins.
ICB Emp. Prov. MF
Prime Bank 1st MF
Top Losers
This
Week
23.00
24.30
7.40
129.60
144.50
142.70
124.40
49.90
6.90
6.50
Change
%
23.66
21.50
21.31
19.01
18.44
18.03
17.69
17.41
16.95
16.07
Turnover (Tk)
19,417,000
76,718,000
52,509,000
75,207,000
36,709,000
237,319,000
93,161,000
124,351,000
14,769,000
17,710,000
Weighted avg. Closing Price (Tk)
Last
Week
This
Week
Change
%
Turnover (Tk)
134.40
16.00
10.00
11.20
10.20
9.60
9.90
1009.90
72.60
39.90
98.30
12.90
8.10
9.30
9.00
8.60
8.90
911.10
65.80
36.80
-26.86
-19.38
-19.00
-16.96
-11.76
-10.42
-10.10
-9.78
-9.37
-7.77
166,952,000
7,495,000
1,815,000
2,343,000
850,000
158,000
131,000
1,394,000
347,397,000
793,656,000
Company
Rupali Life Ins.
Meghna Condensed
Meghna PET
Imam Button
Dulamia Cotton
Shyampur Sugar
Zeal Bangla Sugar
Stylecraft
Bangladesh Building
Appollo Ispat
Sectoral Index & Turnover
Sectoral Index
Turnover (Tk.M)
Sector
This Week
Bank
Cement
Ceramic
Engineering
Food & Al.
Fuel & Pow.
Insurance
IT
Jute
Misc.
Mutual Fund
NBFI
Paper
Pharma
Service
Tannery
Telecom
Textile
Travel & Leis.
402.88
355.08
599.31
1664.71
1895.75
3143.19
1416.72
220.54
380.58
731.10
562.33
1281.98
368.83
979.79
902.08
733.91
2301.63
1317.73
758.04
Last Week
391.57
330.82
578.74
1649.52
1887.08
3050.34
1382.13
215.85
376.41
720.16
526.35
1237.68
374.37
927.34
881.49
716.89
2262.63
1245.66
745.68
Change
Change
This Week Last Week
%
%
2.89
7.33
3.56
0.92
0.46
3.04
2.50
2.17
1.11
1.52
6.84
3.58
-1.48
5.66
2.34
2.37
1.72
5.79
1.66
3412.22
2241.18
191.70
4867.85
953.47
5165.52
3436.56
350.65
11.00
766.77
1335.04
3223.11
5.22
3450.45
159.34
1029.84
979.40
4257.94
952.66
2154.43 58.38
1280.83 74.98
157.84 21.45
5360.26
-9.19
893.13
6.76
2971.18 73.85
1685.22 103.92
259.33 35.21
8.51 29.23
554.85 38.19
543.55 145.61
1804.15 78.65
4.57 14.20
2938.84 17.41
132.47 20.28
588.28 75.06
660.59 48.26
3276.57 29.95
478.03 99.29
Technical Talk
The stock market is continuing with the upbeat mood, the
fourth week in a row. Out of its five trading sessions, market
went down in only one session while gained in four trading
sessions. The benchmark general index DSEX, touched a new
high since the January 28, 2013 launch to hit 4702.66 on
January 23, 2014. Last week DSE introduced a new index‘DSEX Shariah Index’ (DSES). Mozaffar Hossain Spinning
Mills Limited made its debut on January 21, 2014 with Tk40
open price; it traded within Tk40-48 band on that day and
closed at Tk45.30.
DSE Broad Index (DSEX) reached at 4702.66 points
increased by 183.30 points or 4.06% from the previous week.
Total turnover reached at Tk36983.35m with 41.87% increase
from the last week’s Tk26067.61m. On the other hand, market
capitalization increased by 4.06% and stood at Tk2264.53b
($29.26b) at the weekend against Tk2176.12b. DSE-30 has
moved upward by 71.32 points (4.48%) and closed at 1664.01
points against 1592.78. Last week’s weighted average Market
PE was 16.61 which was 4.04% higher than previous week’s
15.96.
During the week, DSE General Price Index was above both 9
and 18-day moving average line.
Top Turnover Companies
Company
Padma Oil Company
Meghna Petroleum
LankaBangla Finance
United Commercial Bank
Olympic Industries
Volume
Value (Tk)
3,365,700
4,388,300
11,137,500
28,432,700
4,681,500
1,135,554,000
1,117,024,000
867,578,000
828,285,000
817,407,000
% of
total
3.07
3.02
2.35
2.24
2.21
In million
Top 10 Market Capital
Grameenphone
Square Pharma
BATBC
Titas Gas
ICB
286,399
113,704
101,868
83,391
70,400
Islami Bank
Lafarge Surma Cement
ULC
Padma Oil
Pubali Bank
52,544
48,778
46,125
34,882
30,436
Category wise Turnover
TURNOVER (Category)
A
B
N
Z
89.52%
3.72%
Commodity Price
2.78%
This Week
1269.40
19.74
107.88
Gold (USD/t oz.)
Silver (USD/t oz.)
Brent Crude Oil (USD/bbl.)
Exchange Rate
This Week
TT
USD
EUR
GBP
AUD
JPY
CAD
SAR
77.40
104.31
127.92
67.77
0.73
69.08
20.53
3.97%
BC
78.40
106.74
130.24
69.35
0.76
70.71
21.01
Last Week
1251.70
20.27
106.33
Last Week
TT
77.40
104.88
126.38
67.86
0.73
70.42
20.53
Change %
1.41
-2.61
1.46
Change %
BC
78.40
107.31
128.68
69.46
0.76
72.08
21.01
TT
BC
0.00
-0.54
1.22
-0.13
0.00
-1.90
0.00
0.00
-0.53
1.21
-0.16
0.00
-1.90
0.00
Based on Standard Chartered selling rates to public in Taka. Notes: USD-US Dollar, GBP-Great
Britain Pound, AUD-Australian Dollar, JPY- Japanese Yen, CAD-Canadian Dollar, SAR-Saudi Riyal.
Last Public Offerings
Company
Emerald Oil Industries
Subscription
Period
Sponsor
(M.Tk)
IPO
(M.Tk)
January 06-12, 2014
200.00
Matin Spinning Mills Ltd.
January 26-30, 2014
1261.70
Hwa Well Textiles (BD)
February 17-23,2014
200.00
Private Placement
(M.Tk)
ASSET & INVESTMENT MANAGEMENT SERVICES OF BANGLADESH LIMITED
Unique Trade Center (UTC), Level 6 (SW), 8 Panthopath, Karwan Bazar, Dhaka 1215, Bangladesh
Tel : +(880-2) 913 6432–4 (Three Lines), Fax : +(880-2) 913 6162–3 (Two Lines)
e-mail : hello@aims-bangladesh.com; web: http://www.aims-bangladesh.com