Dhaka stocks back to negative zone on political tensions

Staff Correspondent | Published: 00:00, Nov 18,2018

 
 

Dhaka stocks resumed fall in the past week, after a pause in the previous week, as investors went on share sales in cautious trading amid rising political tension ahead of the national elections.
DSEX, the key index of Dhaka Stock Exchange, dropped 0.28 per cent, or 14.49 points, to close at 5,244.63 points on Thursday, the last trading session of the week after gaining by only 0.64 point in the previous week.
The DSEX lost 204 points in the last five weeks with a marginally positive week.
The key index witnessed fall in three trading sessions with rise in two others in the past week.
The rising political activities including meetings, rallies, dialogues and political fracas surrounding the national polls continued to weigh on the investors’ psyche, said market operators.
Most of the investors were cautious, a typical symptom of investors before elections in any country, as they closely watched the political developments and confrontations, they said.
Investors became nervous after a confrontation broke out between the police and the BNP leaders and activists in front of the party’s central office at Naya Paltan in Dhaka on October 14, leaving several people including policemen injured.
On October 11, the newly formed opposition alliance, Jatiya Oikya Front, announced that it would join the upcoming general elections despite the alliance yet to reach any consensus over elections process.
The chief election commissioner, KM Nurul Huda, deferred the general elections by a week to December 30 though the opposition alliance Jatiya Oikya Front had demanded deferment of the schedule by one month.
EBL Securities in its weekly market commentary said ‘The capital market settled in flat note by the end of this week following investors watchful stance ahead of national elections.’
Average share prices of non-bank financial institutions, telecommunication, engineering dropped by 3.85 per cent 2.4 per cent and 1.05 per cent respectively.
On the other hand, state-run Investment Corporation of Bangladesh and DSE members tried to keep the market stable by injecting funds that saved that market from significant fall, stockbrokers said.
Average share prices of energy, pharmaceuticals and bank gained 3.68 per cent, 0.42 per cent and 0.18 per cent respectively.
The daily average turnover on the bourse, however, increased by 6.51 per cent to Tk 552.95 crore in the last week from Tk 519.15 crore in the previous week.
Out of the 349 traded issues, 186 declined, 143 advanced and 18 remained unchanged.
DS30, the blue-chip index of DSE, shed 0.16 per cent, or 2.98 points, over the week to close at 1,856.12 points.
Shariah index DSES also dipped 0.19 per cent, or 2.35 points, to close at 1,208.11 points.
United Power Generation and Distribution Company led the turnover chart with its shares worth Tk 137.21 crore changing hands.
Khulna Power Company, SK Trims & Industries, IFAD Autos, Saiham Cotton Miulls, Intech Limited, Shepherd Industries, Monno Ceramic Industries, BBS Cables and The Peninsula Chittagong were the other turnover leaders.
Sonali Aansh Industries gained the most in the week with a 38.63-per cent increase in its share prices, while Tosrifa Industries was the worst loser, shedding 19.92 per cent.

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