Stocks drop in cautious trading ahead of Khaleda verdict

Staff Correspondent | Published: 21:31, Feb 07,2018

 
 

Dhaka stocks dropped marginally on Wednesday after a surge in the previous session as investors remained cautious a day before the announcement of verdict against Bangladesh Nationalist Party chairperson Khaleda Zia in a corruption case.
The key index of Dhaka Stock Exchange, DSEX, lost 0.21 per cent, or 12.90 points, to finish at 5,936.34 points.
The index gained 79.46 points in the previous session on bargain hunting after losing 307 points in a five-day rout amid concern over the political situation and the Bangladesh Bank’s decision to cut banks’ advance-deposit ratio.
Market operators said that the DSEX fell moderately on Wednesday because of cautious trading by investors ahead of the verdict against Khaleda and optimistic buying by some investors amid media reports that a consortium of two Chinese stock exchanges submitted bid to become strategic partner of the DSE through buying 25 per cent stake of the bourse at Tk 992 crore.
The market began with a negative trend, shedding 50 points within 15 minutes of the day’s trading, but soon it recovered most of the initial losses on bargain hunting by some investors.
The market ended up in the negative trajectory as political worries outweighed optimism.
A special court in Dhaka is scheduled to announce its verdict against BNP chairperson Khaleda Zia in a graft case, which the party said was designed to bar the former prime minister from taking part in the national elections.
The fear was growing among investors as the government tightened the security across the country and the media reported that nearly 3,000 activists and leaders of different units of BNP and front organisations were arrested in the past six days.
Therefore, many of the investors opted for ‘wait-and-see’ policy, market operators said.
The average share prices of cement, bank and food sectors decreased by 1.0 per cent, 0.21 per cent and 0.2 per cent respectively.
Some of the large capitalised scrips, however, surged on the day ahead of the announcement of their earnings reports, stockbrokers said.
The share prices of IDLC Finance, Beximco Pharmaceuticals and Grameenphone advanced by 2.59 per cent, 2.01 per cent and 0.87 per cent respectively.
The share prices of telecommunication and pharmaceuticals sectors advanced by 0.3 per cent and 0.2 per cent respectively.
The share prices of bank, non-bank financial institution and cement sectors advanced by 2.88 per cent, 1.21 per cent and 0.90 per cent respectively.
Moreover, intervention by some of the financial institutions by injecting funds in the capital market also helped the market recover some losses, market operators said.
The turnover at the bourse, however, increased slightly to Tk 398.13 crore from that of Tk 322.84 crore in the previous session.
‘The core index witnessed volatility throughout the session as investors’ sentiment oscillated between optimism and watchfulness,’ said EBL Securities in its daily market commentary.
Out of 337 companies and mutual funds traded, 177 declined, 108 advanced and 49 remained unchanged.
DS30, the blue-chip index of the DSE, also shed 0.001 per cent, or 0.03 points, to close at 2,216.16 points.
Shariah index DSES slipped 0.09 per cent, or 1.37 points, to close at 1,384.20 points.
Beximco Pharmaceuticals led the turnover chart on the day with its shares worth Tk 27.98 crore changing hands.
LankaBangla Finance, Usmaina Glass Sheet Factory, International Leasing, City Bank, Square Pharmaceuticals, Alif Industries, Pharma Aid, Monno Ceramics, and Grameenphone were the other turnover leaders.
Usmaina Glass Sheet Factory was the top gainer with a 7.10-per cent rise in its share prices, while Oimex Electrode was the worst loser, shedding 5.81 per cent.

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