Stocks slump for 2nd week amid Khaleda verdict tension

Staff Correspondent | Published: 00:23, Feb 11,2018 | Updated: 00:26, Feb 11,2018

 
 

Dhaka stocks slumped last week, the second week in a row, as investors were tense amid political instability in the run-up to the announcement of the verdict against Bangladesh Nationalist Party chairperson Khaleda Zia in a graft case.
DSEX, the key index of Dhaka Stock Exchange, lost 0.93 per cent, or 55.82 points, over the week to close at 5,965.63 points on Thursday after losing 194.36 points in the previous week.
In line with the previous week, the market started last week with a 133-points fall that was the highest single-day loss in four and a half years, market operators said.
The downward movement, however, slowed as a section of investors went for bargain hunting, they said.
The Dhaka Special Judge’s Court-5 on February 8 jailed BNP chairperson Khaleda Zia for five years and her eldest son Tarique Rahman and four others for 10 years in the Zia Orphanage Trust case.
On the verdict day, the turnover at the DSE hit a one-and-a-half-year low as fear seized investors amid the tightening of security across the country.
Investors were cautious about the political developments throughout the week as hundreds of leaders and activists of the BNP were arrested in the week, stockbrokers said.
A Bangladesh Bank decision to cut the banks’ advance-deposit ratio also dampened the investors’ mood that resulted in a bearish trend at the market in recent weeks.
The daily average turnover on the DSE declined further to Tk 365.39 crore last week compared with that of Tk 394.68 crore in the previous week.
The average share prices of engineering, non-bank financial institution and bank sectors fell by 3.13 per cent, 1.77 per cent and 0.74 per cent respectively.
The share prices of Lafarge Surma, BRAC Bank and Islami Bank declined most in the week.
But, the market did not fall significantly as some of the institutions including state-run Investment Corporation of Bangladesh became active in last week to keep the market afloat, market operators said.
Besides, the media reported on February 7 that a Chinese consortium wants to be strategic partner of the DSE through buying the bourse’s shares with around Tk 992 crore.
Upcoming financial disclosures from a number of companies also kept a section of investors interested, market operators said.
The share prices of LankaBangla Finance, Grameenphone and National Bank increased in the week that saved the market from a major fall.
‘As stakeholders are wary of potential political issues, the market participation has been very slow, with only Tk 365 crore average turnovers throughout the week,’ said LankaBangla Finance in its weekly market commentary.
Of the 338 companies and mutual funds traded, 269 declined, 62 advanced, and seven remained unchanged.
DS30, the blue chip index of the DSE, shed 0.11 per cent, or 2.44 points, to close at 2,225.48 points over the week.
Shariah index DSES also slid by 0.54 per cent, or 7.49 points, to close at 1,389.57 points.
LankaBangla Finance led the turnover chart over the week with it shares worth Tk 89.98 crore changing hands.
Beximco Pharmaceuticals, Square Pharmaceuticals, Grameenphone, Monno Ceramic Industries, City Bank, Pharma Aid, National Bank, BRAC Bank and Alif Industries were the other turnover leaders.
Monno Jute Staffers gained the most in the week with a 23.66-per cent increase in its share prices, while Oimex Electrode was the worst loser, shedding 18.39 per cent.

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