Dhaka stocks decline

Staff Correspondent | Published: 21:58, Oct 11,2017 | Updated: 23:58, Oct 11,2017

 
 

Dhaka stocks dropped on Wednesday amid a fall in the share prices of two-thirds of the traded scrips as investors went for selling shares fearing that the market would fall further as a number of banks would have to adjust their capital market overexposures following a Bangladesh Bank move.
DSEX, the key index of Dhaka Stock Exchange, declined by 0.54 per cent, or 33.24 points, to finish at 6,108.57 points on Wednesday after gaining 12.91 points in the previous session.
Although the market started with bullish vibe with gaining 73 points in the first hour of the session, the momentum did not sustain for long and began to dip steeply soon as investors moved for share sales fearing further fall in share prices, stockbrokers said.
On Monday, the media reported that the central bank on October 5 fined seven banks for violating capital market exposure limit while a number of other banks would also be punished by the BB for the same offence.
On Monday, the key index declined by 76 points amid panic selling.
Stockbrokers said that as investors presumed that banks would adjust their overexposure at the capital market in accordance with the central bank’s instruction, they found safe to sell off shares before facing any losses.
As a result, the average share prices of banks dropped by 0.6 per cent. The sector, however, held 50 per cent of the day’s turnover.
Out of the 30 traded bank scrips, 24 declined, three advanced and three remained unchanged.
Besides banks, all the other large capitalised sectors except telecommunications slumped on Wednesday while cement, non-bank financial institutions and pharmaceuticals declined by 1.7 per cent, 0.9 per cent and 0.3 per cent respectively.
On the flip side, jute and telecommunications increased 3.6 per cent and 1.1 per cent respectively.
The continued surge in the share prices of Grameenphone and BRAC Bank saved the market from a bigger fall.
Of the 331 companies and mutual funds traded, 225 declined, 79 advanced, and 28 remained unchanged.
Turnover at the bourse surged to Tk 1,092.04 crore from that of Tk 765.10 crore in the previous trading session.
‘The index remained positive in the early part of the session displaying optimistic behaviour from investors towards the market but in the later part of the session investors opted to book quick gain from their portfolio that turned the index negative today [Wednesday],’ said EBL Securities in its market commentary.
The prime bourse of the country observed a session of profit booking amid choppy trading, it said.
DS30, the blue-chip index of the DSE, however added 0.06 per cent, or 1.44 points, to close at 2,208.44 points.
Shariah index DSES declined by 0.53 per cent, or 7.26 points, to finish at 1,340.52 points.
City Bank led the turnover chart on the day with its shares worth Tk 44.61 crore changing hands.
LankaBangla Finance, BRAC Bank, Uttara Bank, Aamra Network, EXIM Bank, Shahjalal Islami Bank, Islami Bank, Al-Arafah Islami Bank and United Commercial Bank were the other turnover leaders.
Style Craft gained the most, adding 54.92 per cent, while Shepherd Industry was the worst loser on the day, shedding 7.60 per cent. 

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