Dhaka stocks fall for 4th day as foreign investors’ participation wanes

Staff Correspondent | Published: 00:05, Sep 05,2018

 
 

Dhaka stocks dropped for the fourth consecutive session on Tuesday as media reports that participation of the foreign investors at the Dhaka Stock Exchange fell to a four-year low dampened the investors’ mood, market operators said.
DSEX, the key index of the DSE, lost 0.67 per cent, or 37.61 points, to close at 5,552.80 points on Tuesday.
The DSEX lost 66.61 points in last four sessions.
After a slight gain at the beginning, the market started falling sharply without any resistance as investors continued selling shares, especially bank scrips, market operators said.
The media reported on Tuesday that the foreign portfolio investment at the DSE was negative for the fifth consecutive month in August with the foreign turnover hitting a four-year.
In August, the foreign investors sold shares worth Tk 181.76 crore against their purchase of shares worth Tk 176.01 crore, and the turnover settled at Tk 357.77 crore, the lowest mark after August, 2014 when it was Tk 317 crore.
Besides, a section of investors were also watching political developments ahead of the national elections due by January this year, market operators said.
The average share prices of the banking sector continued falling and it the sector lost 1.5 per cent on Tuesday. More than two-thirds of the traded scrips at the DSE dropped on the day.
The share prices of energy and textile sectors also dropped — by 1.6 per cent and 0.9 per cent respectively — on investors’ profit-taking move that fuelled the volatility on the day.
On the other hand, the average share prices of telecommunication, cement and pharmaceuticals advanced by 0.5 per cent, 0.2 per cent and 0.1 per cent respectively that saved that market from further fall.
‘From the very early part of the session, the index experienced selling pressure as investors opted to gain their portfolios and adopted wait-and-see approach,’ said EBL Securities in its daily market commentary.
The turnover on the DSE increased slightly to Tk 716.98 crore on Tuesday compared with that of Tk 707.89 crore in the previous trading session.
Of the 335 companies and mutual funds traded, 228 declined, 64 advanced, and 42 remained unchanged.
DS30, the blue-chip index of the DSE, also shed 0.47 per cent, or 9.33 points, to close at 1,950.33 points.
Shariah index DSES lost 0.26 per cent, or 3.37 points, to finish at 1,271.00 points.
Khulna Power Company led the turnover chart with its shares worth Tk 65.44 crore changing hands.
Confidence Cement, BBS Cables, Nahee Aluminum, Aman Feed, United Power Generation Company, Bangladesh Submarine Cable Company, IPDC Finance and National Housing and Finance Services were the other turnover leaders.
Bangladesh Submarine Cable Company gained the most on the day with a 9.92-per cent increase in its share prices, while Savar Refractories was the worst loser, shedding 9.89 per cent.

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