Stocks dip for 3rd week as banks sink

Staff Correspondent | Published: 03:09, Jul 15,2018

 
 

Dhaka stocks inched down in the past week, stretching losses for the third week, as gain in prices of most of the scrips was outmuscled by fall in some large capitalised scrips like banks amid worries over the financial market.
DSEX, the key index of Dhaka Stock Exchange, lost 0.06 per cent or 3.37 points over the week to finish at 5,358.91 points on Thursday, the last trading session of the week.
The core index lost 83 points in the last three consecutive weeks.
The market ended flat as the investors were active on the both side of the trading fence.
Investors were confused about the bank owners’ declaration about cut in interest rate of bank loans with effect from July 1.
The media was continuously reporting that most of the banks were facing difficulty in implementing the decision of interest rate at single digit that dampened investors’ mood as they had previously expected that the reduced rate would increase fund flow to the capital market.
Finance minister AMA Muhith on Wednesday also said that it would be difficult to bring down lending rate to single digit immediately.
Market experts said that the implementation of the decision may adversely affect the chaotic financial market in the country.
Media reports said that many of the banks were already facing difficulties to collect deposit after they brought down the deposit rate to 6 per cent.
A section of investors liquidated investment to inject fund in the upcoming debutant SK Trims Industries to gain quick profit as prices of the newly-listed company had risen abnormally in last few occasions.
The SK Trims will make trading debut on Sunday.
Besides, a section of investors were rebalancing their portfolio as most of the companies preparing to declare earnings results for the year last financial year.
Share prices of banks continued to hammer the DSEX, losing 2.0 per cent over the week.
Besides, average share prices of food and pharmaceuticals sectors dropped 2.8 per cent and 0.5 per cent respectively that fueled the volatility on the week.
Among the high-profiled scrips, share prices of BRAC Bank, British American Tobacco and Square Pharmaceuticals plunged over the week.
On the other hand, share prices of cement, energy, telecommunication and non-bank financial institutions sectors advanced 3.8 per cent, 2.0 per cent, 1.1 per cent and 1.0 per cent respectively.
The daily average turnover of the bourse, however, soared to Tk 970.04 crore in the past week from Tk 764.17 crore in the previous week.
‘Market turnover went up sharply as opportunistic investors took fresh position considering lucrative price level in different stocks and anticipating positive year-end dividend declarations from listed companies,’ said EBL Securities in its weekly market commentary.
Out of the 343 traded issues, 171 advanced, 148 declined and 25 issues remained unchanged.
DS30, the blue chip index of the DSE, also plunged 1.02 per cent, or 19.68 points, to close at 1,906.78 points over the week.
Shariah index DSES, however, gained 0.48 per cent, or 6.06 points, to close at 1,267.38 points.
Bashundhara Paper Mills led the turnover chart for the second weeks with its shares worth Tk 214.41 crore changing hands.
BBS Cables, Ratanpur Steel Re-Rolling Mills, United Power Generation & Distribution Company, Singer Bangladesh, Pacific Denims, Bangladesh Export Import Company, Legacy Footwear, Paramount Textile and Monno Ceramic Industries were the other turnover leaders.
The Peninsula Chittagong gained the most in the week with a 40.51 -per cent increase in its share prices, while BD Autocars was the worst loser shedding 25.37 per cent.

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