Stocks fall for 11th session in 12 days as panic grips investors

Staff Correspondent | Published: 22:11, Apr 20,2017

 
 

Dhaka stocks declined for the third trading session on Thursday, the last trading session of the week, with decline in turnover as investors continued to ditch banks shares in an apprehension of further fall.
In last 12 trading sessions, the key index of the bourse declined in 11 trading sessions, resulting in 256 points loss.
The key index of Dhaka Stock Exchange, DSEX, declined 0.60 per cent or 33.43 points to close at 5,521.66 points, the lowest after 5,512.46 points on February 9 this year.
The key index of the bourse increased to its all time high at 5,777 points on April 4 this year that has declined to 5,521 points on Thursday.
Stockbrokers said that the market has been on the decline as the investors’ profit booking share sales during early in the month turned into panic-driven share sales and that continued till Thursday.
Investors, who had already sold out their holding, might have opted to wait further for observing the market movement before taking fresh investment move, while another section of investors continued to park their funds on the sideline in fear of further decline in share prices, they said.
Besides, post-dividend price adjustment in banks’ share prices was among other reasons behind the recent market fall, stockbrokers said.
On the sectoral front, prices of bank shares declined another 0.90 per cent on the day after falling 1.27 per cent in the previous trading session following Bangladesh Bank’s warning to 20 banks that the entities might face existence crisis if they fail to recover defaulted loans, dejecting investors on banks shares.
On the other hand, non-bank financial institutions gained 2.70 per cent on the day, thanks to significant rise in share prices of Investment Corporation of Bangladesh.
DS30, the blue-chip index of the bourse, finished at 2,050.43 points, shedding 0.23 per cent or 4.73 points.
The Shariah index, DSES, closed at 1,272.24 points, declining 0.58 per cent or 7.47 points.
Of the 324 companies and mutual funds traded, 83 advanced, 196 declined and 45 remained unchanged.
Turnover, a major indicator of investors’ participation, on the bourse also declined to Tk 557.88 crore compared with that of Tk 684.18 crore in the previous trading session.
‘The market’s losing streak continued amid the downtrend as majority of the scrips lost value on sales pressure,’ IDLC Investments said in its market commentary.
‘Activities receded in the market as buyers remained cautious and watchful,’ it said.
Shahjibazar Power Company led the turnover chart with its shares worth Tk 24.79 crore changing hands.
Regent Textile Mills, LankaBangla Finance, Islamic Finance and Investment, Saif Powertec, BDCOM Online, Investment Corporation of Bangladesh, Beximco Pharmaceuticals, Ratanpur Steel Re-Rolling Mills and IDLC Finance were other turnover leaders.
Investment Corporation of Bangladesh gained the most on the day with a 7.52 per cent rise in its share prices, while First Securities Islami Bank was the worst loser shedding, 9.92 per cent.

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