Dhaka stocks declined on Wednesday after a surge in the previous session with a fall in the share prices of two-thirds of the traded scrips as investors’ fear that Bangladesh Bank might announce a contractionary monetary policy kept the market damp.
The central bank will announce its monetary policy statement for the second half (January-June) of this fiscal year (2017-18) later this month.
DSEX, the key index of Dhaka Stock Exchange, declined by 0.49 per cent, or 30.48 points, to close at 6,098.32 points on Wednesday after gaining 70.95 points in the previous session.
In line with the previous session, the market began the day on positive note, but it did not sustain the vibe for long as investors went for selling shares to avoid any unexpected losses, market operators said.
The market had advanced on Tuesday after a two-day fall as a section of investors went for bargain hunting hoping that listed companies would announce better disclosures for last year.
However, many investors remained cautious, fearing that the BB might tighten its upcoming monetary policy to control money flow in the financial sector, market operators said.
Moreover, the BB recently has declared to cut the banks’ advanced deposit ratio that might cause a liquidity crisis in the capital market, they said.
The average share prices of bank and non-bank financial institution sectors plunged by 1.40 per cent and 1.22 per cent respectively that contributed most to the fall at the market on the day.
Out of the 30 traded bank scrips, 25 declined, just four advanced and one remained unchanged while out of the 23 NBFI issues, 17 declined, four advanced and two remained unchanged.
The share prices of engineering, cement and energy sectors also declined on Wednesday.
Among the prominent scrips, the share prices of City Bank, LankaBangla Finance and Lafurge Surma declined most on the day.
On the other hand, pharmaceuticals, telecommunication and food gained 0.64 per cent, 0.28 per cent and 0.27 per cent respectively that saved the market from further fall.
Market operators said investors preferred to be on the sidelines to watch the next direction of the market that caused the turnover remaining below Tk 500 crore for seven consecutive trading sessions.
The turnover at the bourse increased slightly to Tk 391.55 crore on Wednesday from that of Tk 388.70 crore in the previous session.
Of the 334 companies and mutual funds traded, 214 declined and just 89 advanced, and 31 remained unchanged.
DS30, the blue-chip index of the DSE, also lost 0.48 per cent, or 10.93 points, to finish at 2,236.14 points.
Shariah index DSES, however, added 0.18 per cent, 2.52 points, to close at 1,392.43 points.
Square Pharmaceuticals led the turnover chart on the day with its shares worth Tk 21.69 crore changing hands.
Dragon Sweater, Grameenphone, IFAD Autos, Shepherd Industries, National Tubes, City Bank, BD Thai, United Power Generation Company and LankaBangla Finance were the other turnover leaders.
Shepherd Industries increased most with a 9.18-per cent rise in its share prices, while Alif Industries was the worst loser, shedding 6.45 per cent.
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