Stocks dip for 2nd week on DSE share sales worries

Staff Correspondent | Published: 21:32, Mar 03,2018 | Updated: 23:22, Mar 03,2018

 
 

Despite increasing over the last three sessions, Dhaka stocks posted weekly losses for the second week amid investors’ concern over the liquidity shortage and uncertainty surrounding the sales of shares of the bourse to a strategic partner.
DSEX, the key index of Dhaka Stock Exchange, dropped 0.61 per cent, or 36.15 points, over the week to close at 5,870.83 points after losing 143.22 points in the previous week.
Similar to previous week, the market began the week with negative trend, posting 130 points loss in the first two sessions as the investors were deeply concerned about the liquidity shortage in the financial market and DSE share sales to the strategic partner, market operators said.
The market, however, rebounded and remained positive in the last three sessions of the week on the assurance of the regulatory body, they said.
They said that the investors were concerned as they assumed that the liquidity shortage might get worse with the national election approaching.
Moreover, the investor’s concern over the DSE share sales increased when Bangladesh Securities and Exchange Commission, which has been against the selection of the Chinese consortium from the beginning, asked the bourse on February 26 to clarify a number of rules ‘violations’ by the Chinese consortium in its strategic partnership bid and asked to send their explanation by March 4.
Earlier, the DSE had approved the Chinese consortium’s offer and sent it to the BSEC for approval.
The daily average turnover on the DSE inched down to Tk 373.58 crore last week compared with that of Tk 374.62 crore in the previous week.
On the other hand, the investors became optimistic about the market as DSE managing director KAM Majedur Rahman told reporters on February 26 that the market would start rebounding the next day and also requested investors not to be worried about the DSE share sales as the regulator was reviewing proposal from the Chinese consortium, stockbrokers said.
Moreover, the institutional investors in particular went for buying shares from Wednesday after the move of finance minister AMA Muhith to stabilise the capital market.
The minister at an emergency meeting on Tuesday asked the agencies concerned including Investment Corporation of Bangladesh to take measures for improving the market condition at the DSE.
‘Regulatory bodies were vigilant to restore investors’ confidence on market and turnaround of the market during the last part of the week depicted that market has returned to its normal condition,’ said EBL in its weekly market commentary.
Of the 338 companies and mutual funds traded, 203 declined, 113 advanced and 22 remained unchanged.
DS30, the blue chip index of the DSE, slipped 0.06 per cent, or 1.29 points, to close at 2,168.97 points over the week.
Shariah index DSES also declined by 0.22 per cent, or 3.07 points, to close at 1,372.45 points.
Square Pharmaceuticals led the turnover chart over the week with its shares worth Tk 70.06 crore after changing hands.
IFAD Autos, Unique Hotel and Resorts, Olympic Industries, Grameenphone, Beximco Pharmaceuticals, LankaBangla Finance, Al-Arafah Islami Bank, Monno Ceramics and Pharma Aid were the other turnover leaders.
EBL First Mutual Fund gained the most in the week with a 13.19-per cent increase in its share prices, while GSP Finance Company was the worst loser shedding 25.26 per cent.

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