Stocks dip for 2nd day as investors eye political dialogue

Staff Correspondent | Published: 00:00, Nov 02,2018

 
 

Dhaka stocks dropped for the second day on Thursday amid cautious trading as investors awaited the outcome of talks between prime minister and Awami League president Sheikh Hasina and leaders of a new opposition alliance over the upcoming national elections, market operators said.
A 23-member team of the ruling AL-led alliance sat with a 16-member delegation of the opposition alliance, Jatiya Oikya Front, led by Dr Kamal Hossain at Ganabhaban in Dhaka Thursday evening.
DSEX, the key index of Dhaka Stock Exchange, shed 0.48 per cent, or 25.65 points, to close at 5,258.47 points on Thursday after losing 14.94 points in the previous session.
The DSEX began with positive trend, but it lost the stream soon after and finished the session in the negative territory as investors kept an eye on the political dialogue, market operators said.
They said that investors were waiting for the outcome of the dialogue.
Investors were observing the political situation ahead of the 11th parliamentary elections due by January 28, 2019, market operators said.
The election schedule may be announced next week.
Stockbrokers said declarations of poor earnings and dividends by some key companies in recent days also dampened the investors’ mood.
The share prices of GlaxoSmithKline Bangladesh plunged by 2.74 per cent as the company declared significant loss in the July- September period compared with that in the same period of the previous year.
The share prices of Khulna Power Company Limited declined by 3.50 per cent on the day as the company on Wednesday declared lower dividend (30 per cent cash and 10 per cent stock dividend) for the year ended on June 30, 2018 despite making 21.90 per cent profit increase. On Wednesday, KPCL lost 6.30 per cent.
Earnings per share of BRAC Bank declined by 15.60 per cent to Tk 1.19 in the third quarter this year compared with that in the same period of the previous year that dragged down the share prices of the company by 1.14 per cent.
The average share prices of pharmaceuticals, energy and bank dropped by 0.91 per cent, 0.79 per cent and 0.72 per cent respectively.
On the other hand, some investors went on buying shares as they anticipated that the stockbrokers would start investing their share sales proceeds in the market as DSE started disbursing the proceeds of Tk 947 crore to its shareholders.
The average share prices of textile, non-bank financial institution and telecommunication sectors advanced by 0.92 per cent, 0.27 per cent and 0.27 per cent respectively.
The turnover on DSE increased to Tk 529.95 crore on Thursday compared with that of Tk 514.71 crore in the previous trading session.
Of the 336 companies and mutual funds traded on Thursday, 118 advanced, 174 declined and 50 remained unchanged.
DS30, the blue-chip index of DSE, also lost 0.67 per cent, or 12.68 points, to close at 1,865.35 points.
Shariah index DSES shed 0.52 per cent, or 6.43 points, to finish at 1,216.05 points.
SK Trims and Industries led the turnover chart with its shares worth Tk 19.30 crore changing hands.
Khulna Power Company, Intech Limited, United Power Generation Company, Nurani Dyeing, Advent Pharma, VFS Thread Dyeing, Shaiham Textile, Pharma Aid and National Life Insurance Company were the other turnover leaders.
KDS Accessories gained the most on the day with a 9.92-per cent increase in its share prices, while United Insurance was the worst loser, shedding 8.79 points.

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