Dhaka stocks inched down on Thursday, the last trading session of the week, with a decline in the majority of the traded scrips as investors sat back to ponder their next moves after the announcement of monetary policy statement by Bangladesh Bank on Wednesday with a decreased private sector credit growth target.
The key index of Dhaka Stock Exchange, DSEX, finished at 5,815.07 points, shedding 0.16 per cent or 9.35 points on the day after increasing by 49 points in the previous three trading sessions.
In line with the previous three trading sessions, the market started on a positive note with the key index increasing by 33 points within the first 24 minutes of trading mainly due to inventors’ optimistic purchasing following BB governor Fazle Kabir’s assurance that there was no relationship between monetary policy statement and the capital market, stockbrokers said.
The market, however, started to lose ground afterward amid half-yearly earnings announcements by different companies, influencing investment psychology and subsequent fall in the majority of the traded scrips, they said.
Besides, the central bank’s target to reduce private sector credit growth to 16.3 per cent during the July-December period made investors a bit cautious regarding the expansion of firms listed with the capital market as banks are considered main source of financing for the industries, they said.
Among the major sectors, average prices of 10 sectors declined against increase of eight sectors.
As half-yearly-earnings reports of almost all the banks and non-bank financial institutions published on Thursday were mostly satisfactory, shares of the two sectors attracted investors, stockbrokers said.
Average prices of NBFI and bank sectors gained 0.20 per cent and 0.10 per cent respectively.
Besides, telecommunication sector increased by 1.10 per cent mainly because of 1.04 per cent or Tk 3.9 increase in the price of Grameenphone shares.
On the other hand, prices of cement, energy and pharmaceutical sectors declined by 0.50 per cent, 0.20 per cent and 0.10 per cent respectively. ‘Despite early morning enthusiasm, the market closed in the red,’ IDLC Investments said in its market commentary.
‘Bank showed disproportionate dominance in turnover, contributing 27.2 per cent of total turnover singlehandedly,’ it said.
Q2 earnings declaration by multiple banks in recent days energized investors’ interest in this sector, it said.
Turnover on the bourse, however, increased to Tk 712.96 crore compared with that of Tk 638.94 crore in the previous trading session.
Of the 330 companies and mutual funds traded, 113 advanced, 166 declined and 51 remained unchanged.
DS30, the blue-chip index of the DSE, inched down 0.10 per cent, or 2.23 points, to close at 2,129.10 points on Thursday.
The Shariah index of the bourse, DSES, however, finished flat at 1,317.64 points, adding just 0.03 per cent or 0.43 points.
Mercantile Bank was the most traded scrip on the day with its shares worth Tk 32.52 crore changing hands.
Grameenphone, LankaBangla Finance, IDLC Finance, Premier Bank, Zaheen Spinning, City Bank, IFIC Bank, Fortune Shoe and Keya Cosmetics were the other turnover leaders.
Rupali Bank gained the most on the day with a 9.79 per cent increase in its share price, while Bangladesh Welding Electrodes was the worst loser, shedding 4 per cent.
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