Stocks drop for 9th day as more banks announce poor results

Staff Correspondent | Published: 00:10, May 15,2018

 
 

Dhaka stocks dipped for nine consecutive sessions on Monday with the turnover at the Dhaka Stock Exchange falling further as investors remained worried as more banks declared poor earnings results on the day.
DSEX, the key index of the DSE, lost 0.01 per cent, or 1.09 points, to close at 5,557.57 points.
The key index lost 256 points in last nine trading sessions.
The market was unstable during the whole session with a couple of ups and downs that, however, settled in the negative trajectory as investors were active on both sides of the trading fence amid cautiousness, market operators said.
They said investors remained on the sidelines to observe the next movement of the market as the share prices were falling continuously.
The turnover at the DSE slumped to Tk 330.81 crore on Monday compared with that of Tk 378.79 crore in the previous session. Monday’s turnover was the lowest since March 28 when it was Tk 277 crore.
Investors became shaky amid the poor earnings disclosures by most of the large capitalised scrips including banks. A number of banks recently declared poor earnings.
On Monday, Premier Bank and Islami Bank announced quarterly profit fall by 56.41 per cent and 44.61 per cent respectively in the January-March period this year compared with that in the same period of the previous year. The share prices of Islami Bank plunged by 2.89 per cent on Monday.
The media is continuously exposing the bleak situation of the country’s banking sector that has also dampened the investors’ sentiment, market operators said.
Officials of the brokerage houses said that the capital market had been facing liquidity shortage despite the implementation of government measures including the reduction in CRR and ADR ratio to increase liquidity in the financial market.
They said that the stock market would be benefited if Bangladesh Bank modified bank’s investment limit in the capital market.
On the other hand, a section of investors went for bargain hunting share purchasing on Monday that saved the market from further fall.
British American Tobacco, United Power Generation and Islami Bank were the worst losers on the day while Social Islami Bank, Grameenphone and IDLC Finance gained most.
Of the 335 companies and mutual funds traded on the day, 135 declined, 134 advanced, and 70 remained unchanged.
DS30, the blue-chip index of the DSE, however, added 0.02 per cent, or 0.50 points, to finish at 2,075.86 points.
Shariah index DSES shed 0.04 per cent, or 0.60 points, to close at 1,300.93 points.
Western Marine Shipyard led the turnover chart on the day with its shares worth Tk 23.77 crore changing hands.
United Power Generation Company, Dragon Sweater, Bangladesh Export Import Company, BRAC Bank, Bangladesh Steel Re-Rolling Company, Usmania Glass Sheet Factory, BBS Cables, Grameenphone and Miracle Industries were the other turnover leaders.
Social Islami Bank gained the most with a 6.58 -per cent increase in its share prices, while Modern Dyeing and Screen Printing was the worst loser, shedding 6.89 per cent. 

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images