Stocks drop for 2nd day as investors keep eye on MPS announcement

Staff Correspondent | Published: 23:12, Jul 25,2018

 
 

Dhaka stocks declined for the second day on Wednesday as investors remained cautious, keeping an eye on new monetary policy statement Bangladesh Bank would announce next week.
DSEX, the key index of Dhaka Stock Exchange, shed 0.29 per cent, or 15.93 points, to close at 5,319.44 points on Wednesday after losing 12.68 points in the previous trading session.
The market gained 30 points within 20 minutes of the day’s session, but began to fall steeply soon after as investors remained uncertain about the possible impact of the upcoming MPS on the financial market, market operators said.
They said the BB would declare the monetary policy for the first half (July-December) of the current fiscal year next week that made investors cautious on the trading floor.
Investors generally become cautious before the announcement of new monetary policy, they said.
Besides MPS jittery, investors were dismayed as most banks were declaring poor performance for the second quarter (April-June) period, market operators said.
After United Commercial Bank, Trust Bank and Rupali Bank, One Bank on Wednesday declared profit fall by 85.93 per cent for the second quarter compared with that in the same period in the previous year.
‘Investors went for profit taking ahead of the announcement of monetary policy statement by the central bank, which influenced them to take cautious decision and the market turned to red zone in the later part of the session,’ said EBL Securities in its daily market commentary.
Most of the large capitalised sectors including financial sectors shed on the day.
The average share prices of bank, cement, telecommunication and non-bank financial institution dropped by 1.2 per cent, 1.1 per cent, 0.9 per cent, and 0.4 per cent respectively on Wednesday.
On the other hand, the share prices of energy and engineering sectors advanced by 1.0 per cent and 0.6 per cent respectively that saved the market from further fall.
Turnover on the DSE, however, surged to Tk 954.43 crore on Wednesday compared with that of Tk 716.61 crore in the previous trading session.
Of the 337 companies and mutual funds traded, 167 declined, 128 advanced and 41 remained unchanged.
DS30, the blue-chip index of the DSE, also lost 0.41 per cent, or 7.84 points, to close at 1,895.09 points.
Shariah index DSES dipped 0.20 per cent, or 2.54 points, to finish at 1,264.11 points. BBS Cables led the turnover chart with its shares worth Tk 37.49 crore changing hands.
Pacific Denims, Singer Bangladesh, Active Finance, Usmania Glass Sheet Factories, IFAD Autos, United Power Generation Company, Fu-Wang Food, The Peninsula Chittagong and Saiham Textile Mills were the other turnover leaders.

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