Dhaka stocks declined for the fourth trading session on Sunday as investors’ earnings declaration-centric dissatisfaction turned into panic-driven share sales in fear of further price fall.
The key index of Dhaka Stock Exchange, DSEX, declined to 4,605.08 points, the lowest since 4,601.08 points on September 8 this year, shedding 0.67 per cent or 31.14 points on Sunday, the first trading session of the week. DSEX has lost 88 points in last three trading sessions.
The key index of the bourse fell below 4,600 points level around first one-and-half hour of trading amid intense share sales by the investors. Despite the 17 points recovery in the second half of the session, market finished at 4,905 points with decline in more than two-third traded scrips, said stockbrokers.
The market stated to face increased share sales when earnings reports of listed companies, most of them were dissatisfactory to the investors, started to hit the market one-by-one last week, they said.
Lower earnings announcement and portfolio reshuffling moves might have played the major role behind the recent downward market trend, stockbrokers said.
Of the companies which made corporate announcements on Sunday, Khulna Printing and Packaging and Deshbandhu Polymer were downgraded to ‘Z’ category from ‘A’ category as the entities failed to declare any dividend for their shareholders.
On the other hand, profit booking by the institutional investors ahead of December closing was among other reasons behind the sudden market fall, they said.
As a result of the facts, investors went for panic-driven share sales with a view to save their investments from further erosion, they said.
On the sectoral front, share prices of most sectors, especially bank, cement, engineering and textile fell, except non-bank financial institutions and food and allied.
Of the 324 companies and mutual funds traded, 91 advanced, 191 declined and 42 remained unchanged.
Turnover of the bourse declined to Tk 457.16 crore compared with that of Tk 605.92 crore in the previous trading session.
‘Stocks had an up-and-down performance on Sunday as risk appetite waned,’ said LankaBangla Securities in its market report.
‘The correction phase of the market continued as strings of downbeat earnings update stifled the market sentiment,’ it said.
DS30, the blue-chip index of DSE, fell by 0.94 per cent or 16.49 points, to close at 1,734.94 points.
The Shariah index, DSES, finished at 1,100.67 points, shedding 0.82 per cent or 9.12 points.
Doreen Power Generations and Systems led the turnover chart on the day with its shares worth Tk 37.63 crore changing hands.
Khulna Power Company, MJL Bangladesh, Fortune Shoes, Ifad Autos, JMI Syringes and Medical Devices, KDS Accessories, Titas Gas Transmission and Distribution Company, National Tubes and Square Pharmaceuticals were other turnover leaders.
Golden Harvest Agro Industries gained the most, adding 10.37 per cent, while Sinobangla Industries was the worst loser of the day, shedding 23.55 per cent.
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