Dhaka stocks declined for the second trading session on Thursday amid investors’ deteriorating confidence over the market amid growing defaulted loans in banks.
The key index of Dhaka Stock Exchange, DSEX, fell by 0.55 per cent or 30 points, to close at 5,399.66 points.
DSEX declined 122 points in last eleven days amid increase in just one trading session.
In line with the negative ending in last trading session, the market declined significantly with decline in share prices of almost two-third traded scrips despite being on the positive trajectory in first half-an-hour of trading, stockbrokers said.
Investors’ deteriorating confidence over the market was the main reason behind the increased volume of share sales, they said.
Poor performance of the banks in terms of loan recovery that ultimately resulted in increased amount of defaulted loans, dejecting capital market investors as banks are considered one of the driving force of the capital market, stockbrokers said.
Defaulted loans increased to Tk 73,409.06 crore as of March 31, 2017 from Tk 62,172 crore as of December 31, 2016, according to a recent Bangladesh Bank report.
Prices of 18 banks out of traded 29 banks declined on the day, while only 6 advanced and rest five remained unchanged, resulting in an average 0.80 per cent decline in banking shares.
Apart from the bank shares, price fall of non-bank financial institutions and energy shares by 1.20 per cent and 0.40 per cent also contributed to the market fall as well.
Besides, investors’ apprehension that the market might fall further ahead of the national budget announcement was among other reasons behind the increased share sales, they said.
The blue-chip index of the bourse, DS30, declined 0.51 per cent or 10.32 points, to close at 1,991.79 points on Thursday, the last trading session of the week.
DSES, Shariah index of DSE, finished at 1,255.16 points, shedding 0.27 per cent or 3.45 points.
Turnover on the bourse also declined to Tk 635.22 crore compared with that of Tk 684.04 crore in the previous trading session.
Of the 323 companies and mutual funds traded, 90 advanced, 192 declined and 41 remained unchanged.
IFAD Autos led the turnover chart on the day with its shares worth Tk 71.72 crore changing hands.
Paramount Textile, Doreen Power Generations and Systems, LankaBangla Finance, BDCOM Online, BRAC Bank, Bangladesh Shipping Corporation, Navana CNG, Zaheen Spinning and Aamra Technologies were other turnover leaders.
EXIM Bank First Mutual Fund gained the most with a 7.79 per cent increase in its share prices, while Regent Textiles was the worst loser, shedding 9.61 per cent.
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