Stocks drop for 3rd day despite key stakeholders’ efforts

Staff Correspondent | Published: 03:07, Feb 02,2018

 
 

Dhaka stocks declined on Thursday, extending the losing streak to the third session, despite efforts from capital market stakeholders to ease panic and keep the market afloat.
DSEX, the key index of Dhaka Stock Exchange, lost 0.30 per cent, or 18.33 points, to close at 6,021.44 points on Thursday.
The index lost 155 points in last three trading sessions.
The market was positive until the mid-session of the day as some of the institutions including state-run Investment Corporation of Bangladesh became active to keep the market afloat after two days of battering of stocks, market operators said.
But, the market failed to keep the momentum as many investors kept selling shares amid political jitters and a cut in banks’ advance-deposit ratio by Bangladesh Bank.
Market operators said that the market ended Thursday with marginal losses because of the efforts of a number of key stakeholders to keep the market positive.
Bangladesh Merchant Bankers Association and DSE Brokers Association of Bangladesh on Wednesday evening organised a joint press conference to assure investors that the market would rebound soon.
BMBA secretary general Khairul Bashar Abu Taher said that the political turbulence would soon calm down as the government expected a smooth market.
He also said that a section of investors spread the rumour of political turmoil to attain their interests.
Besides, the DSE on Wednesday released its overseas investment data that eased a section of investors’ nerve.
The media reported on Thursday that net foreign investment at the DSE increased threefold or Tk 124 crore in January from that in the previous month.
Despite the assurances and foreign investment data, many investors remained worried about political situation as a special court in Dhaka announces its verdict in a corruption case against Bangladesh Nationalist Party chairperson Khaleda Zia on February 8.
Investors remained worried for last three days over the possibility of political uncertainty in the election year.
Moreover, the BB’s move to cut banks’ ADR by 1-1.5 percentage points have also dampened the mood of some of the investors as the bankers said that the BB move would deepen liquidity crisis and increase interest rate that might create haphazard at the financial market ahead of the elections.
As a result, the turnover at the bourse, declined to Tk 329.45 crore from that of Tk 472.27 crore in the previous session.
The average share prices of banks and telecommunication declined by 0.54 per cent and 0.5 per cent respectively that contributed most to the market fall.
Besides, cement, energy and food sectors also slipped by 0.4 per cent each on the day.
The share prices of LankaBangla Finance, BRAC Bank and Grameenphone continued to decline on the day.
On the other hand, the share trading of Monno Ceramics became halted, gaining by 9.95 per cent in the sluggish market as the company declared better-than-expected earnings for the second quarter. The company’s earnings per share increased by 3,000 per cent or Tk 1.45 for the October-December period in 2017 compared with that in the same period of the previous year.
Of the 337 companies and mutual funds traded, 151 declined, 137 advanced and 48 remained unchanged.
DS30, the blue-chip index of the DSE, also lost 0.49 per cent, or 11.02 points, to close at 2,227.92 points.
Shariah index DSES shed 0.10 per cent, 1.41 points, to close at 1,397.05 points.
Grameenphone led the turnover chart on the day with its shares worth Tk 19.30 crore changing hands.
Monno Ceramics, LankaBangla Finance, Alif Industries, Square Pharmaceuticals, BRAC Bank, City Bank, BD Finance, National Tubes and Pharma Aid were the other turnover leaders.
Monno Ceramics was the top gainer with a 9.86-per cent rise in its share prices, while Apex Tannery was the worst loser, shedding 3.99 per cent. 

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