Stocks flat for 3rd day as investors keep shedding financial scrips

Staff Correspondent | Published: 00:05, Jul 23,2018

 
 

Dhaka Stock Exchange. -- New Age file photo

Dhaka stocks finished flat for the third consecutive session on Sunday as investors kept selling financial shares amid apprehension about the performance of banks and non-bank financial institutions for the April-June period.
DSEX, the key index of the Dhaka Stock Exchange, added 0.03 per cent, or 1.75 points, to close at 5,339.18 points.
The key index gained only 13.45 points in last three trading sessions.
The market was upbeat in the beginning of the day but slowed in the last two hours of the session to end flat as investors kept selling financial stocks ahead of their second quarter forecast.
The banks and NBFIs that so far declared quarterly results announced profit decline for the April-June period.
United Commercial Bank and Trust Bank declared profit fall while among the NBFIs, Bangladesh Industrial Finance Corporation, Delta Brac Housing Finance and National Housing Finance declared profit fall for the April-June period.
Besides, ICB Islamic Bank declared further loss while Peoples Leasing and Financial Services announced loss for the April-June period compared with that in the previous year.
The share prices of banks kept shedding for four consecutive days, falling by 1.40 per cent on Sunday while NBFIs fell by 0.78 per cent.
The ongoing crisis in the financial sector eroded investors’ confidence in the sector and they feared profit fall declaration by the most of the banks for another quarter.
On the other hand, investors turned their focus to other sectors. So, the share prices of engineering, miscellaneous, cement and pharmaceuticals advanced by 2.4 per cent, 0.7 per cent, 0.6 per cent and 0.59 per cent respectively that kept the market afloat.
Among the large capitalised scrips, the share prices of IFAD Autos, RAK Ceramics, Renata and Olympic Industries soared on Sunday.
‘The capital bourse of the country closed on flat note on Sunday as investors followed cautious stance amid ongoing earnings and dividend declarations,’ said EBL Securities in its daily market commentary.
However, most of the investors still lacked confidence that prompted them to book quick gains, it said.
The share prices of ‘Z’ category companies, also known as junk shares, continued to decline as the DSE on July 18 delisted Rahima Food Corporation and Modern Dying as the companies remained out of production for long.
Officials of the bourse said a number of other ‘Z’ category companies were also under the DSE scanner and the companies might face delisting.
Turnover on the DSE increased to Tk 1,054.93 crore on Sunday compared with that of Tk 912.23 crore in the previous trading session.
Of the 337 companies and mutual funds traded, 171 declined, 142 advanced and 26 remained unchanged.
DS30, the blue-chip index of the DSE, gained 0.21 per cent, or 4.06 points, to close at 1,908.52 points.
Shariah index DSES gained 0.11 per cent, or 1.48 points, to finish at 1,274.57 points.
BBS Cables led the turnover chart with its shares worth Tk 40.98 crore changing hands.
IFAD Autos, Nahee Aluminum, KDS Accessories, Aman Feed, Dragon Sweater, Navana CNG, Bashundhara Paper Mills, Active Finance and Shasha Denims were the other turnover leaders.
Aamra Technologies gained the most on the day with a 10-per cent increase in its share prices, while Imam Button was the worst loser, shedding 10 per cent. 

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