Dhaka stocks on Sunday extended its losing streak to fourth consecutive sessions as many of the investors, especially institutional ones, remained on slow trading allowing market to fall after booking profits in the previous three trading sessions.
The key index of Dhaka Stock Exchange, DSEX, dropped 0.68 per cent, or 39.52 points, to close at 5,773.60 points on Sunday.
The core index lost 105 points in the last four trading sessions.
The market began with positive momentum, with DSEX gaining 30 points within half an hour but it started to fall soon after and dipped firmly as the time progressed as institutional investors squeezed share purchases and general investors became twitchy over the slowness of the trading.
Market operators said that many of the institutional investors booked profits in the previous three sessions after the DSEX had gained 390 points in eight trading sessions, with an one profit-taking, beginning from March 28 following the government announcement of a number of measures to increase money supply in the financial market.
These investors are now waiting on the sidelines for market to fall further so that they could buy shares at cheaper rate again, they said.
A senior stockbroker, however, said that the government decision to increase fund flow in the financial market was to beef up the liquidity shortage in the money market that had a minor influence on the capital market.
Bangladesh Bank’s decision to cut the banks’ cash reserve ratio by 1 percentage point and repo rate by 0.75 point became effective from Sunday.
He also said that the capital market would get a slim benefit from the decisions as the banks itself required more fund to cover up their liquidity shortage, let alone injecting fund in the capital market.
The only way the capital market can be benefited if the central bank approves the bank’ investment limit at cost price, he said.
Average share prices of all the sectors except cement declined on the day and the financial sectors led the dive with the non-bank financial institutions and bank falling 2.1 per cent and 1.2 per cent respectively.
Engineering, energy and telecommunication also declined by 0.7 per cent, 0.4 per cent and 0.3 per cent respectively.
Among the large capitalized scrips, the decline in share prices of Investment Corporation of Bangladesh, Grameenphone and BRAC Bank weighed most on the index.
The turnover at the bourse plunged to Tk 412.25 crore on Sunday compared with that of Tk 553.42 crore in the previous session.
‘The morning buoyancy did not sustain as several investors opted for profit booking,’ said EBL Securities in its daily market commentary.
Of the 335 companies and mutual funds traded on the day, 228 declined, 74 advanced, and 37 remained unchanged.
DS30, the blue-chip index of the DSE, also slipped 0.49 per cent, or 10.86 points, to finish at 2,186.79 points.
Shariah index DSES, shed 0.16 per cent, or 2.24 points, to close at 1,350.59 points.
Bangladesh Export Import Company led the turnover chart on the day with its shares worth Tk 39.30 crore changing hands.
LafargeHolcim Bangladesh, Northern Jute Manufacturing Company, Padma Oil, BRAC Bank, Monno Ceramics, Gemini Sea Food, Advent Pharmaceuticals, Popular Life Insurance and Apex Foods were the other turnover leaders.
Sonali Aansh Industries gained the most with an 8.73-per cent increase in its share prices, while Advent Pharmaceuticals was the worst loser, shedding 8.05 per cent.
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