Dhaka stocks declined on Tuesday with fall in turnover as investors dissatisfied by the earnings reports, especially those of the banks, went for increased share sales.
The key index of Dhaka Stock Exchange, DSEX, finished at 4,681.86 points, shedding 0.25 per cent or 11.83 points.
Stockbrokers said that the market declined on Tuesday with fall in share prices of most traded scrips after the flat ending in last two trading sessions.
Banks’ shares had heavy sales for the third trading session on Tuesday, mainly due to dissatisfactory earnings reports of most banks which were published this week, resulting in an adverse impact on overall market sentiment, they said.
Of the listed banks and financial institutions which announced earning reports on Tuesday, earnings of Dhaka Bank, Mutual Trust Bank and Investment Corporation of Bangladesh declined significantly.
Dhaka Bank’s earnings per share declined to Tk 0.46 during July to September period against that of Tk 0.51 for the same period in the previous year.
Besides, third quarterly EPS of MTB declined to Tk 0.73 for the same period from that of Tk 0.93 in the same period of the previous year.
ICB’s annual EPS declined to Tk 5.94 for the year ended on June 30, 2016 compared with that of Tk 6.66 in the previous year. On the other hand, Brac Bank and Islamic Finance announced better earning reports on the day.
Earning reports of United Commercial Bank Limited, the only bank that had published quarterly earning report on Monday, was also unimpressive to the investors.
Due to the lower earning reports, investors opted to ditch banks’ shares resulting in an average 1.30 per cent decline of the sector.
On the other hand, better earning reports of Doreen Power Generations and Systems impacted positively on the overall energy shares resulting in average 0.48 per cent rise of the sector, stockbrokers said.
Price of Doreen shares was on the rise since earnings announcement.
Turnover of the bourse declined to Tk 609.44 crore compared with that of Tk 644.88 crore in last trading session.
Of the 327 companies and mutual funds traded, 129 advanced, 161 declined and 37 remained unchanged.
‘Short term profit booking tendency punished the market on Tuesday, causing prime index DSEX to lose 11.8 points to close at 4,681.9,’ said IDLC Investments in its market commentary.
‘DSE stocks pointed to a lower opening in the morning as earnings season picked up and investors hurried to book profit,’ said LankaBangla Securities in its market report.
‘However, few fundamental stocks were in buyers’ preference which supported the market to close with marginal loss,’ it said.
DS30, the blue-chip index of the bourse, however, finished positive at 1,758.25 points, adding just 0.04 per cent or 0.71 points.
The Shariah index, DSES, fell marginally by 0.13 per cent or 1.48 points, to close at 1,118.11 points.
Doreen Power Generation and Systems led the turnover chart with its shares worth Tk 41.21 crore changing hands.
KDS Accessories, IT Consultants, Square Pharmaceuticals, Fortune Shoes, Argon Denims, Mithun Knitting, Titas Gas Transmission and Distribution Company, Aman Feed Mills and MJL Bangladesh were among other turnover leaders.
Sonali Ansh gained the most with a 9.99 per cent rise in its share prices, while National Feed Mills was the worst loser of the day, shedding 10.99 per cent.
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