Stocks return to red on DSE share sales uncertainty

Staff Correspondent | Published: 00:05, Mar 08,2018 | Updated: 00:12, Mar 08,2018

 
 

Dhaka stocks dropped on Wednesday after a marginal gain in the previous session as investors kept selling shares amid lingering fears over the existing liquidity crisis and uncertainties over the DSE’s share sales to a strategic partner.
The Dhaka Stock Exchange’s key index, DSEX, lost 0.43 per cent, or 25.62 points, to finish at 5,847.81 points after gaining 12.47 points in the previous session.
The market started the day positive but did not sustain the vibe for long as apprehensive investors started selling shares, market operators said.
They said the concern over the DSE’s share sales to a strategic partner lingered as the Bangladesh Securities and Exchange Commission on Wednesday extended timeframe for an evaluation committee for submitting its report on the DSE’s proposal in this regard to the commission by five working days after the committee failed to provide the report by the stipulated timeframe — Wednesday.
Earlier, on Sunday, the DSE sent replies to the queries made by the BSEC about rules ‘violations’ in the strategic partnership proposal of the Chinese consortium. The DSE mentioned the group’s willingness to amend a number of clauses the BSEC highlighted in its letter to the DSE.
Besides, the liquidity crisis at the financial market made investors concerned over the country’s economy, market operators said.
Market experts feared that the fund shortage might worsen ahead of the national elections, likely to be held at the end of this year.
The share prices of food, bank, cement and non-bank financial institution sectors declined by 1.12 per cent, 1.1 per cent, 0.5 per cent and 0.1 per cent respectively.
Among the prominent scrips, the share prices of City Bank, BRAC Bank and Islami Bank declined most on the day.
On the other hand, the share prices of textile and telecommunication sectors increased by 0.8 per cent and 0.3 per cent respectively that saved the market from further fall.
The turnover at the DSE inched down to Tk 405.73 crore on Wednesday compared with that of Tk 426.90 crore in the previous session.
Out of the 337 companies and mutual funds traded, 167 advanced, 116 declined, and 50 remained unchanged.
DS30, the blue-chip index of the DSE, also dropped by 0.56 per cent, or 12.23 points, to close at 2,155.86 points.
Shariah index DSES shed 0.13 per cent, or 1.84 points, to finish at 1,373.26 points.
BRAC Bank led the turnover chart on the day with its shares worth Tk 12.94 crore changing hands.
Al-Arafah Islami Bank, Monno Ceramics, Beximco Pharmaceuticals, Mercantile Bank, Grameenphone, IFAD Autos, BD Thai, Paramount Textiles and Nahee Aluminum were the other turnover leaders.
The Peninsula Chittagong was the top gainer with a 9.56-per cent rise in its share prices, while Prime Insurance Company was the worst loser, shedding 9.5 per cent. 

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