Dhaka stocks declined for the second trading session on Thursday as investors continued with selling spree in an apprehension that a possible adjustment by a number of banks to their over-investment in stocks might result in further volatility in market.
The key index of Dhaka Stock Exchange, DSEX, finished at 6,064.40 points, shedding 0.72 per cent or 44.16 points.
In line with the last trading session, market finished negative amid volatility with decline in share prices of almost two-third traded scrips, stockbrokers said.
Investors’ cautious movement after penalising a number of banks by the Bangladesh Bank for making over investments in the capital market in violation of Bank Companies Act was the main reason behind the reverse movement of the market, except the positive ending on Tuesday, since the publication of media reports were published on the issue, stockbrokers said.
They said that the overall cautious approach of the capital market investors also resulting in some panic-driven share sales by a section of investors as well, impacting negatively over the market.
Investors were in an apprehension that the central bank’s tough stance to contain bank’s capital market exposure would leave banks into a discomfort zone in making capital market investments which will ultimately hinder the bullish vibe of the capital market, they said.
Almost all the sectors including bank, telecommunication, energy and non-bank financial institutions declined 1.1 per cent, 0.8 per cent, 0.4 per cent and 0.4 per cent respectively on an average.
As a result, prices of only 97 scrips out of traded 331 companies and mutual funds advanced, while 197 declined and 37 remained unchanged.
Besides, investors’ cautious stance was also reflected on the day’s turnover as well. Turnover of the bourse declined to Tk 743.29 crore on Thursday from Tk 1,092.04 crore in the previous trading session.
‘Index went through some heavy fluctuation throughout the day and closed red at 6,064.41 points,’ said LankaBangla Securities in its market report.
‘All major large cap sectors closed negative on Thursday except Ceramic, Pharmaceuticals, and Foods and Allied with marginal positive movement of 0.38 per cent, 0.20 per cent, and 0.08 per cent respectively,’ it said.
DS30, the blue-chip index of DSE, fell by 0.49 per cent or 10.98 points, to close at 2,197.46 points.
The Shariah index, DSES, closed at 1,333.67 points, shedding 0.51 per cent or 6.85 points.
BRAC Bank led the turnover chart with its shares worth Tk 37.97 crore changing hands.
IFAD Autos, Shahjalal Islami Bank, EXIM Bank, aamra Networks, Uttara Bank, City Bank, ACI Limited, Mercantile Bank and LankaBangla Finance were other turnover leaders.
Apex Spinning gained the most with 9.94 per cent increase in its share prices, while Modern Dyeing was the worst loser, shedding 16.54 per cent.
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