Stocks see week of battering amid political jitters, ADR cut

Staff Correspondent | Published: 00:11, Feb 04,2018

 
 

Dhaka stocks were battered last week as investors went for selling shares amid political jitters and lowering of banks’ advance-deposit ratio by Bangladesh Bank.
DSEX, the key index of Dhaka Stock Exchange, lost 3.13 per cent, or 194.36 points, over the week to close at 6,021.45 points on Thursday after gaining 93.57 points in the previous week.
The market started falling from the first trading day (Sunday) of the week as most of the investors were worried about the political situation in the country and the monetary policy declaration by the central bank.
On January 29, the BB announced the monetary policy for the second half (January-June) of this fiscal year (2017-18) and on the following day it lowered the banks’ ADR.
Investors became panicky over the possibility of political unrest as a special court in Dhaka set February 8 for announcing its verdict in a graft case against Bangladesh Nationalist Party chairperson Khaleda Zia.
Hundreds of leaders and activists of the BNP were arrested in the week following an attack on a police van allegedly by BNP activists.
Besides, the cut in the banks’ ADR by 1-1.5 percentage points also dampened mood of a section of investors.
Bankers said that the BB move would deepen liquidity crisis and increase bank interest rate that might create haphazard at the financial market ahead of the national elections.
The national polls are likely to be held at the end of this year.
The daily average turnover on the DSE also declined to Tk 394.68 crore last week compared with that of Tk 449.34 crore in the previous week.
Some of the institutions including state-run Investment Corporation of Bangladesh, however, became active on Thursday to keep the market afloat, market operators said.
The average share prices of all the sectors except food fell while the financial sectors declined most.
The share prices of non-bank financial institutions and bank sectors plunged by 4.8 per cent and 4.1 per cent respectively.
Among the prominent scrips, the share prices of LankaBangla Finance, BRAC Bank and City bank plummeted by 12 per cent, 9.1 per cent and 7.2 per cent respectively over the week.
‘The market seems to be feeling the after effects of monetary policy announcement. The index passed one of the most bearish weeks in last two years,’ said LankaBangla Finance in its weekly market commentary.
Of the 338 companies and mutual funds traded, 274 declined, 48 advanced, and 16 remained unchanged.
DS30, the blue chip index of the DSE, shed 3.33 per cent, or 76.77 points, to close at 2,227.92 points over the week after hitting an all-time high in the previous week.
Shariah index DSES also slid by 2.40 per cent, or 34.38 points, to close at 1,397.06 points.
Grameenphone led the turnover chart over the week with it shares worth Tk 100.65 crore changing hands.
Square Pharmaceuticals, IFAD Autos, Monno Ceramics, LankaBangla Finance, Paramount Textile, National Bank, City Bank, BRAC Bank and Bangladesh Finance and Investment Company were the other turnover leaders.
Monno Ceramics gained the most in the week with an 18.11-per cent increase in its share prices, while National Polymar Industries was the worst loser, shedding 12.09 per cent.

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