Stocks negative for 2nd day with more weak earning reports

Staff Correspondent | Published: 02:42, Nov 15,2016

 
 

Dhaka stocks declined for the second trading session on Monday amid quarterly earning declarations and spot transaction of a notable number of companies that kept investors cautious on the trading floor.
The key index of Dhaka Stock Exchange, DSEX, fell by 0.47 per cent or 22.20 points, to close at 4,644.98 points on Monday.
In line with the negative ending of last trading session, the market started with a negative vibe with decline in share prices of most traded scrips and continued throughout the whole session, stockbrokers said.
They said that unimpressive reports from most of the 45 companies which announced quarterly earnings on the day and spot transaction of around 30 companies made investors a bit cautious on the trading floor, resulting in negative ending of the session.
Of the earnings declarers, prices of Power Grid Company of Bangladesh declined by 9.10 per cent to Tk 59.20 on Monday from Tk 64.80 on Sunday despite the fact that the entity’s earnings per share increased to Tk 2.66 for the year that ended on June 30, 2016 compared with that of Tk 90 in the previous year.
Besides, first quarterly EPS of Power Grid also increased to Tk 1.02 from Tk 0.60 in the same quarter of the previous year.
Stockbrokers said that the announcement of 12 per cent cash dividend of Power Gird failed to meet investors’ desire, resulting in a sharp decline in its share prices.
As like Power Grid, quarterly earnings of a significant number of companies failed to fulfill investors’ desire as well, impacting negatively on overall market, they said.
Turnover of the bourse, however, increased to Tk 644.11 crore compared with that of Tk 564.63 crore in the previous trading session.
Of the 321 companies and mutual funds traded, 84 advanced, 189 declined and 48 remained unchanged.
‘Short term profit booking tendency challenged overall market movement on Monday,’said IDLC Investments in its market commentary.
‘As a consequence, broad index DSEX lost 22.2 points to close at 4,645.0 points,’ it said.
‘Following the recent volatility surrounding the quarterly earning declarations, stocks pointed to a lower opening in early morning as earnings held the key to the market movement,’ said LankaBangla Securities in its market report.
‘Selling pressure rose reassuring further downside in DSEX for the second consecutive sessions,’ it said.
DS30, the blue-chip index of the bourse, finished at 1,746.64 points, shedding 0.48 per cent or 8.52 points.
The Shariah index of the bourse, DSES, inched down to 1,117.07 points, declining 0.35 per cent or 3.95 points.
Bangladesh Building Systems led the turnover chart with its shares worth Tk 39.02 crore changing hands.

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