Dhaka stocks drop ahead of SK Trims’ debut

Staff Correspondent | Published: 00:05, Jul 13,2018

 
 

Dhaka stocks dropped on Thursday as investors sold shares to free up funds ahead of SK Trims Industries’ debut.
Uncertainty over the implementation of the banks’ interest rate cut decision also put a negative impact on the market, stockbrokers said.
DSEX, the key index of the Dhaka Stock Exchange, dropped 0.37 per cent, or 20.33 points, to close at 5,358.90 points after gaining 38 points in the previous two trading sessions.
Investors’ frenzy over any newly listed compnay has been very high in recent years, market operators said.
They said the share prices of newly listed companies skyrocketed that attracted investors to the scrips to make quick gains.
The media reported on Thursday that finance minister AMA Muhith on Wednesday said that it would be tough for all banks to cut lending rate to single digit soon.
The rate cut decision encouraged investors, but many investors were sceptical about its implementation.
The bank owners’ organisation, Bangladesh Association of Banks, on June 20 decided to bring down the lending rate to 9 per cent and deposit rate to 6 per cent from July 1.
On Wednesday, the DSE announced that SK Trims Industries would make its debut on the bourse on July 15.
The earnings per share of SK Trims dropped to Tk 0.40 in the January-March period of this year compared with that of Tk 1.11 in the same period of the previous year.
Non-bank financial institution, bank and pharmaceutical dropped by 0.8 per cent, 0.71 per cent and 0.7 per cent respectively.
On the other hand, the share prices of energy, telecommunication and cement advanced by 2.6 per cent, 1.9 per cent and 0.4 per cent respectively that saved the market from further fall.
The share prices of Grameenphone continued to surge and increased by 2.08 per cent on Thursday as the company would declare its second quarter earnings results on July 15.
‘The morning buoyancy did not sustain as several investors opted for profit booking and adopted watchful stance ahead of the upcoming earnings and dividend declaration from listed companies,’ said EBL Securities in its daily market commentary.
Turnover on the bourse also declined to Tk 852.97 crore compared with that of Tk 1,115.29 crore in the previous trading session.
Of the 339 companies and mutual funds traded, 222 declined, 91 advanced and 25 remained unchanged.
DS30, the blue-chip index of the bourse, also shed 0.44 per cent, or 8.56 points, to close at 1,906.77 points.
Shariah index DSES, however, added 0.03 per cent, or 0.38 points, to finish at 1,267.37 points.
Singer Bangladesh led the turnover chart with its shares worth Tk 43.63 crore changing hands.
United Power Generation and Distribution Company, KDS Accessories, BBS Cables, Monno Ceramics, Legacy Footwear, Bashundhara Paper Mills, Queen South Textile Mills, Paramount Textile and Peninsula Chittagong were the other turnover leaders.
KDS Accessories gained the most on the day with a 9.97-per cent increase in its share prices, while BD Autocars was the worst loser, shedding 8.73 per cent.

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