Investors take to the streets to protest a huge fall in early trading on the Dhaka Stock Exchange in Motijheel in the capital yesterday. The benchmark index closed higher later in the day.

Stocks bounced back yesterday, breaking a losing streak of seven days, on the back of a buying pressure from institutional investors.

DGEN, the main gauge of the Dhaka Stock Exchange, dropped around 150 points by midday, only to recover enough to pull the index back in the black by the close of the trading session.

The price-earnings ratio fell below 13 -- meaning it was a good time to buy -- which persuaded institutional investors to get in the act, market insiders said.

The DGEN eventually finished with 4,077 points, after gaining 88 points from the previous day.

IDLC, City Brokerage, ICB Securities, Salta Capital and NCCB Securities topped the list of net buy, their figures being Tk 8.75 crore, Tk 6.32 crore, Tk 4.12 crore, Tk 3.56 crore and Tk 1.84 crore respectively.

“Opportunist investors, who have reduced their portfolio exposure earlier and waited for favourable conditions, became active as prices looked rewarding for most of the investment grade stocks,” IDLC Investments Ltd said.

The merchant bank's Managing Director Md Moniruzzaman said an investment opportunity was created when the market fell below the 4,000-level, which, the investors grabbed with both hands.

Akter Hossain Sannamat, managing director and chief executive officer of Union Capital, said investors' low confidence led the market to fluctuate dramatically.

The market made a dramatic u-turn, thanks to the institutional investors, said Sannamat.

“They went on a buying spree as most of the good stocks became lucrative for long-term investments.”

He asked institutional investors to continue to be active in the market as it will enhance the confidence of small investors.

He also urged the government to take stockmarket-friendly actions to increase the flow of money.

Turnover, volume and trade were up by 8.81 percent, 12.51 percent and 18.31 percent respectively.

A total of 5.1 crore shares were traded, generating a turnover of Tk 201 crore.

On the DSE, 228 shares gained, 28 declined and 10 remained unchanged.

The Daily Star/Bangladesh/ 12th July 2012

The country’s banking monitoring system should be improved more to prevent circulation of fake notes--the trend of which is on rise in recent days. A noted banker Mirza Mahmed Rafiqur Rahman, additional managing director of United Commercial Bank Ltd (UCBL), made the observation while addressing a seminar on “Raising Awarness Against  Fake Notes” at Bangladesh Institute of Bank Management (BIBM) on Tuesday.

Waking up to the threat of fake currency flooding country’s economy, the UCBL top executive said that the trend should be checked and stopped immediately.

He also stressed the need for more media attention to make public aware about the fake currency that haunts the country’s economy.

He advised the banking sector regulator to run advertisements in media and billboards at various public important areas like railway stations, bus terminals, hat-bazars and other public meeting places to make the public aware.

The advertisement may carry salient features and characteristics of originals currency notes of different denominations which might be displayed clearly.

Held at the BIBM auditorium, the daylong programme was addressed among others by  Bangladesh Bank Deputy Governor Md. Abul Kashem, BIBM Director General Professor Dr. Toufic Ahmad Chowdhury, Dasgupta Asim kumar, Bangladesh Bank executive director SM Aminur Rahman and Janata Bank Managing Director Nazmul Haque.

Dwelling on the rising trend of fake notes in circulation, the Bangladesh Bank Deputy Governor also urged the government to take stringent measures to check menace and exemplary punishment for those who would be found involve in any sort of irregularities in this regard.

Speakers at the seminar informed that most of the banks have already undertaken a series of measures to face the problem and make people aware about the spread of counterfeiting of notes and its impact on the economy.

As a part of tackling the problem, many of the banks have already brought all their note-counting halls and the premises under the watch of CCTV camera round the clock.

They also advised the central bank to strengthen monitoring in all bank branches, countrywide ATM booths and launch surprise visit to check the menace.

The Daily Independent/Bangladesh/ 11th July 2012

The Securities and Exchange Commission (SEC) has asked all the merchant banks, brokerage
firms and other related institutions to give compensation to the small investors affected in the last year’s stock market debacle.

The commission ordered to Dhaka Stock Exchange, Chittagong Stock Exchange and Bangladesh Merchant Bank Association to submit implementation report on compensation package to the SEC by August, said a statement Tuesday. Some 209 brokerage firms under DSE, 79 under CSE and 28 merchant banks have been asked to take immediate steps regarding compensation.

  Earlier, the commission approved a set of recommendations forwarded by the scheme committee assigned to implement the package.

As per the compensation package, the retailers who had investment of below Tk 10 lakh at the crash time will get a waiver of up to 50 per cent of the interest on margin loans.

The adversely affected investors will have the scope to pay the remaining interest payment through quarterly installments in three years.

The affected people are also entitled to a 20 per cent quota in all initial public offerings -- public and private -- to be from July, 2012 to June, 2014.

In April, the scheme committee, led by Md Fayekuzzaman, managing director of the Investment Corporation of Bangladesh (ICB), submitted its recommendations to the SEC for approval. The government in October last year announced a stimulus package for stock market investors to restore stability in the market.

As part of the package, the government formed a seven-member special scheme committee on November 27 to identify small investors who incurred losses, and the amount they lost.

The Daily Independent/Bangladesh/ 11th July 2012

Dr. Mohammed Haider Ali Miah, Additional Managing Director of EXIM Bank, inaugurates an ATM booth at Shimrail Branch of the Bank in Narayanganj Tuesday.

Export Import Bank of Bangladesh Limited opened an ATM booth and a e-corner at its Shimrail Branch in Narayanganj Tuesday.

Dr. Mohammed Haider Ali Miah, Additional Managing Director of EXIM Bank inaugurated the booth as chief guest, said a press release.

Meanwhile, EXIM Bank Limited of Gazipur Chowrasta Branch on Monday awarded stipends to 15 meritorious and poor students of Gazipur Sadar those who are studying in college and university level in different institutions.

According to Bank sources, every year they provide a number of stipends to the talent students for their outstanding performance with a view to social development.

The Daily Sun/Bangladesh/ 11th July 2012

Hafiz Ahmed Mazumder MP, Chairman of Board of Directors of Pubali Bank Limited, speaks at the 3rd conference of regional and corporate branch managers at Bank’s head office in Dhaka.

Pubali Bank Limited organised its third conference of regional and corporate branch managers at the Bank’s head office in Dhaka.

Hafiz Ahmed Mazumder MP, Chairman of Board of Directors of Pubali Bank was present as chief guest while Helal Ahmed Chowdhury, Managing Director of the Bank presided, said a press release Tuesday.

The Daily Sun/Bangladesh/ 11th July 2012