Stocks decline for 2nd day on poor earning reports

Staff Correspondent | Published: 23:13, Oct 26,2016

 
 

Dhaka stocks declined for the second trading session on Wednesday with fall in share prices of more than two-third traded scrips mainly due to depressing corporate declarations by a number of entities.
The key index of Dhaka Stock Exchange, DSEX, fell 0.50 per cent or 23.63 points, to close at 4,658.20 points, the lowest since 4,639.13 points on September 20 this year.
The market saw heavy share sales from the beginning of the session as investors found corporate declarations of listed companies dissatisfactory, stockbrokers said.
Due to investors’ pessimistic approach regarding the market prospect, the key index of the bourse declined by 39 points to 4,642 points before half-an-hour of the market closure.
After the announcement of dissatisfactory third quarterly earning reports by a number of banks and non-bank financial institutions in last couple of days, earning reports of LankaBangla Finance and declarations of no dividends by BD Welding Electrodes and Alltex Industries on Wednesday came as another spell of disheartening information to the capital market investors, stockbrokers said.
BD Welding and Alltex Industries failed to declare any dividend for their shareholders resulting in downgrade of the scrips to Z category known as junk category.
As a result, prices of Alltex Industries’ shares declined the most on the day with a 43.82 per cent decline, while BD Welding was the second worst loser of the day, shedding 13.59 per cent.
Besides, prices of LankaBangla Finance’s shares declined by 10 per cent as its third quarterly earnings declined to Tk 0.19 against that of Tk 0.33 in the previous year.
Apart from that, most sectors witnessed heavy sales on the day except food and allied and IT sectors.
In line with last couple of trading sessions, prices of most banks and NBFIs witnessed heavy sales as most of the entities one by one announced lower earning reports.
Of the 326 companies and mutual funds traded, 75 advanced, 208 declined and 43 remained unchanged.
Turnover of the bourse also declined to Tk 591.44 crore compared with that of Tk 609.44 crore in the previous trading session.
‘At the close of trading, DSEX ended close to more than one-month low. Most of the major equity sectors retreated, in response to the earning declarations,’ said LankaBangla Securities in its market report on Wednesday.
DS30, the blue-chip index of the bourse, declined 0.05 per cent or 1.02 points, to finish at 1,757.23 points.
The Shariah index, DSES, declined to 1,113.06 points, shedding 0.45 per cent or 5.05 points.
Doreen Power Generations and Systems led the turnover chart with its shares worth Tk 37.08 crore changing hands.
KDS Accessories, Fortune Shoes, Aman Feed Mills, Titas Gas Transmission and Distribution Company, LankaBangla Finance, Square Pharmaceuticals, BRAC Bank, JMI Syringes and Medical Devices and Mithun Knitting were other turnover leaders.
JMI Syringes and Medical Devices gained the most with a 9.99 per cent rise in its share prices. 

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