Stocks dip as two-thirds of scrips face sell-offs

Staff Correspondent | Published: 22:46, Oct 29,2017 | Updated: 23:37, Oct 29,2017

 
 

Dhaka stocks dipped on Sunday as investors went for sales from two-thirds traded scrips mainly for booking profits while banks shielded the index from major fall.
DSEX, the key index of Dhaka Stock Exchange, declined 0.37 per cent or 22.84 points to finish at 5,995.41 points after gaining 50.23 points in the previous two sessions.
Although the equity market was positive in the morning session, gaining 22 points at one point of the day, it began to fall deeper soon after as investors went for selling off shares to lock in some gains.
The core index ended below 6,000 points again as share prices of two-thirds traded scrips fell on Sunday riding on their financial disclosures in particular.
The investors expected better earnings and dividends for the year as the market went through a record making rally while some companies failed to meet their expectations.
On the other hand, investors booked profit on Sunday from the shares that declared lower than expected dividends and earnings results for third quarter, for example, Linde Bangladesh, ACI and Doreen Power.
Moreover, investors invested huge amount of funds at the stocks with an expectation of better dividends and earnings results for their third quarter that pushed the share prices of equities upward in recent days.
As a result, many investors preferred to book profit from their investments before any major fall.
British American Tobacco, Grameenphone and BRAC Bank declined by 3.12 per cent, 1.41 per cent and 1.06 per cent respectively on the day after gains in recent times.
On the other hand, surge in share prices of banks by 1.1 per cent surrounding their upcoming third quarter earnings announcements saved the market from a significant fall.
Uttara Bank and Jamuna Bank declared better earnings in the third quarter compared with that in the same period last year and a number of banks would announce their earnings by October 30.
As a result, out of 30 traded bank scrips, 24 advanced, 5 declined and one remained unchanged.
Share prices of other large capitalised sectors declined on the day while cement, telecommunication and energy sectors contributed most to send the market into red zone.
Of the 333 companies and mutual funds traded, 226 declined, 82 advanced and 24 remained unchanged.
Turnover on the bourse declined to Tk 640.85 crore compared with that of Tk 662.99 crore in the previous trading session.
‘Furthermore, recent declarations from most of the stocks haven’t been able to lure investors,’ said EBL Securities in its daily market commentary.
DS30, the blue-chip index of the DSE, plunged 0.79 per cent, or 17.24 points, to close at 2,156.64 points.
Shariah index DSES lost 0.79 per cent, or 10.52 points, to close at 1,305.94 points on Sunday.
Saif Powertec led the turnover chart with its shares worth Tk 28.19 crore changing hands.
BRAC Bank, City Bank, LankaBangla Finance, BBS Cables, Premier Bank, IDLC Finance, BDCOM, Shahjalal Islami Bank and Uttara Bank were the other turnover leaders.
Premier Bank gained the most with a 6.25 per cent increase in its share prices, while Hakkani Pulp was the worst loser, shedding 25.48 per cent. 

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