Stocks plunge to fresh 21-month low on poor dividends, political fracas

Staff Correspondent | Published: 00:17, Oct 29,2018

 
 

Dhaka stocks on Sunday plunged to a fresh 21-month low with sluggish trading as investors remained cautious amid rising political tensions and poor dividend declarations by most of the listed companies.
DSEX, the key index of Dhaka Stock Exchange, lost 1.32 per cent, or 69.80 points, to close at 5,212.23 points on Sunday after gaining 30 points in the previous three sessions.
Monday’s position of the DSEX was its lowest since January 9, 2017 when it was at 5,214.60 points.
The DSEX opened Sunday with a slight loss but witnessed a sharp fall as the time progressed as investors went for selling shares heavily on political worries and poor dividend declarations by the companies, market operators said.
On Saturday, Jatiya Oikya Front top leader and Gono Forum president Kamal Hossain at a rally in the Chattogram city vowed that they would not return home until the JOF’s seven-point demands for free and fair national elections were addressed while ruling Awami League general secretary Obaidul Quader on several occasions said that the demands would not be met.
Kamal at the rally also warned that the government would face trial if it defied from B1
the demands and accused it of violating the constitution repeatedly.
Kamal announced that JOF would hold the next public meeting in Rajshahi on November 2 and complete the ongoing programmes of rally through organising a rally in Dhaka.
Market operators said investors also felt discouraged as the Investment Corporation of Bangladesh was yet to begin investing Tk 2,000 crore (bond sales proceeds) in the market.
Because of the increased sales pressure, market intermediaries could not check the plunge at the market, they said.
Besides, most of the companies declared poor dividends focusing on bonus one that dampened the mood of the investors, they said.
The share price of Indo-Bangla Pharmaceuticals plummeted by 11.81 per cent after the company declared 10 per cent stock dividend for the financial year 2018-19. The company made an 11.57-per cent profit growth in the period.
Golden Harvest Agro Industries and Shurwid industries each declared 10 per cent stock dividend. The companies also made profit growth.
Besides, Baraka Power, Far Chemical Industries and RN Spinning Mills also recommended 10 per cent stock dividend each.
Average share prices of all the large capitalized sectors declined on the day while the financial sectors led the nosedive with a plunge in average share prices of bank and non-bank financial institution by 1.81 per cent and 1.41 per cent respectively.
Share prices of cement, energy and textile sectors also declined on the day.
The turnover on DSE dropped to Tk 371.71 crore on Sunday compared with that of Tk 425.10 crore in the previous trading session.
Of the 336 companies and mutual funds traded on Sunday, 247 declined, 64 advanced, and 28 remained unchanged.
DS30, the blue-chip index of DSE, also slumped by 1.23 per cent, or 23.22 points, to close at 1,852.83 points.
Shariah index DSES lost 1.09 per cent, or 13.37 points, to finish at 1,210.41 points.
Khulna Power Company led the turnover chart with its shares worth Tk 24.26 crore changing hands.
Monno Ceramics, Shahjalal Islami Bank, BBS Cables, Active Fine Chemicals, Delta Life Insurance, Advent Pharmaceuticals, VFS Thread Dyeing, Summit Power and United Power Generation Company were the other turnover leaders.
Mozaffar Hossain Spinning Mills gained the most on the day with a 10.61-per cent increase in its share prices, while Indo-Bangla Pharmaceuticals was the worst loser.

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