Dhaka stocks fall for 2nd week with signs of recovery

Staff Correspondent | Published: 22:55, Jul 07,2018

 
 

Dhaka stocks in the past week fell for the second week amid debut of the Bashundhara Paper Mills and confusion about the banks’ interest rate cut early in the week.
DSEX, the key index of Dhaka Stock Exchange, lost 0.80 per cent or 43.18 points over the week to finish at 5,362.28 points on Thursday, the last trading session of the week, after losing 36.30 points in the previous week.
As there was no trading on Sunday because of bank holiday, the week’s trading began on the bourse on Monday with DSEX plunging 83.04 points.
Heavy purchasing of shares of debutant Bashundhara Paper Mills by investors by selling shares of other companies in their possession led to the plunge of DSEX on the day, said market operators.
Investors gave extra attention to the debutant company as prices of the newly-listed company had risen abnormally in last few occasions because of lack of regulatory intervention, they said.
Apart from Bashundhara’s debut, some of the investors also remained confused about the bank owners’ declaration about cut in interest rate of bank loans with effect from July 1.
Although bank owners on June 20 announced that banks would cut lending rate to 9 per cent from existing 14-15 per cent from July 1, only a few banks declared that their boards had taken the decision to cut rate from July 1.
Besides, investors also remained worried about the implication of rate cut on the banks’ financial health, they said.
As a result, the DSEX fell again by 49.24 per cent on Tuesday as banking sector scrips continued to be hammered.
The key index, however, started to rebound on Wednesday and continued till Thursday as investors went for bargain hunting to buy relatively low-priced scrips.
Many of the institutional investors also became active in last two days, after the end of the June closing of the financial statements, said a stockbroker.
The last two days’ rise of DSEX by 89 points, however, could not surpass the first two days’ slump.
He said that there were signs of revival of the market in the last two trading sessions of the past week.
The average price of non-bank financial institutions fell by 4.1 per cent, followed by banks with 2.80 per cent, pharmaceutical 2.50 per cent, cement 1.8 per cent and food and allied 1.10 per cent.
The daily average turnover of the bourse, however, increased to Tk 764 crore in the past week from Tk 708 crore in the previous week.
Of the traded issues, 163 advanced, 162 declined and 18 issues remained unchanged.
DS30, the blue chip index of the DSE, also lost 1.71per cent, or 33.49 points, to close at 1,926.46 points over the week.
Shariah index DSES also lost 0.20 per cent, or 2.48 points, to close at 1,261.32 points.
Debutant Bashundhara Paper Mills led the turnover chart with its shares worth Tk 256 crore changing hands.
Ratanpur Steel Re-Rolling Mills, United Power Generation & Distribution Company, Monno Ceramic Industries, Alif Industries, Prime Textile Spinning Mills, Bangladesh Export Import Company, Fortune Shoes, Paramount Textile and Legacy Footwear.
Legacy Footwear gained the most in the week with a 45.55 -per cent increase in its share prices, while Peoples Leasing & Financial Services was the worst loser shedding 21.21 per cent.

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