Dhaka stocks keep falling in 10-day relentless sell-offs

Staff Correspondent | Published: 00:05, May 16,2018

 
 

Dhaka stocks dropped on Tuesday, extending the losing streak to the 10th session, amid poor turnover as investors took cautious step on the trading floor while some others went for bargain hunting.
DSEX, the key index of Dhaka Stock Exchange, lost 0.15 per cent, or 8.68 points, to close at 5,548.89 points.
The key index lost 264 points in last 10 trading sessions.
The market went through a unsteady session with a couple of ups and downs that settled in the negative territory at the end of the session as investors were nervous over the market amid a relentless fall in share prices, market operators said.
They said that investors were active on both sides of the trading fence.
A section of investors went for bargain hunting share purchasing at comparatively lower prices while some kept selling shares to avoid any further loss, they said.
They said the recent slide in the share prices eroded the investors’ risk-taking appetite.
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.
The market remained sluggish despite the news that a Chinese consortium that got the Bangladesh Securities and Exchange Commission’s approval to be the DSE’s strategic partner inked share purchasing deal with the bourse on Monday, ending three months of uncertainty over the issue.
The market was on the edge from February mainly due to the skirmish between the DSE and the BSEC.
On Monday, the Chinese group of Shenzhen and Shanghai stock exchanges signed strategic investment deal with the DSE with the presence of finance minister AMA Muhith.
LankaBangla Finance and One Bank on Tuesday declared 73.33 per cent and 73.17 per cent profit fall for the first quarter compared with that in the previous year.
The share prices of One Bank and LankaBangla plunged by 5.00 per cent and 2.54 per cent respectively on the day.
The media is continuously exposing the bleak situation of the country’s banking sector that has also dampened the investors’ sentiment, market operators said.
Therefore, the financial sectors led the dive for another session on Tuesday with a decline in the share prices of non-bank financial institutions and banks by 0.25 per cent and 0.18 per cent respectively.
The share prices of food, cement and telecommunication sectors also dropped by 0.99 per cent, 0.64 per cent and 0.60 per cent respectively.
On the other hand, the average share prices of energy and pharmaceuticals sectors gained by 0.77 per cent and 0.14 per cent respectively that saved the market from further fall.
Grameenphone, British American Tobacco and One Bank were the worst losers while United Power Generation Company, United Commercial Bank and Titas Gas gained most on the day.
The turnover at the DSE increased slightly to Tk 355.29 crore on Tuesday compared with that of Tk 330.81 crore in the previous session.
Of the 335 companies and mutual funds traded on the day, 152 declined, 123 advanced, and 59 remained unchanged.
DS30, the blue-chip index of the DSE, shed 0.18 per cent, or 3.73 points, to finish at 2,072.12 points.
Shariah index DSES slipped 0.01 per cent, or 0.23 points, to close at 1,300.69 points.
Western Marine Shipyard led the turnover chart for the fourth consecutive sessions on the day with its shares worth Tk 27.87 crore changing hands.
Bangladesh Export Import Company, United Power Generation Company, Legacy Footwear, Queen South Textile Mills, Bangladesh Steel Re-Rolling Company, Ratanpur Dairy Food, Monno Ceramics, BBS Cables and LankaBangla Finance were the other turnover leaders.
Queen South Textile Mills gained the most with a 9.79 -per cent increase in its share prices, while Shampur Sugar Mills was the worst loser, shedding 5.35 per cent.

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