Dhaka stocks inched down on Sunday after a slight gain in the previous session as the market trend remained puzzling to many investors while some others went for buying shares following the media reports that the banks’ capital market exposure limit might be raised.
DSEX, the core index of Dhaka Stock Exchange, lost 0.03 per cent, or 1.90 points, to close at 5,273.92 points on Sunday, the opening day of the week, after gaining 3.44 points in the previous session.
The index lost 119 points in last five trading sessions that included one positive session.
The market started with a bullish momentum on Sunday as a section of investors, encouraged by the media reports, went for buying shares but finished negative as other investors remained on the sidelines as they were yet to recover from the trauma of market plunges in recent months, market operators said.
The media reported on Friday that Bangladesh Bank might exclude banks’ investments in non-listed securities from the banks’ capital market exposure calculation.
If the central bank takes the move, it would create for banks fresh investment scopes in stocks and so the media reports on the issue motivated a section of investors, market operators said.
But many investors remained concerned over the current liquidity crisis in the financial sector, they said.
Market experts apprehended that the BB move, if taken, would fail to put any significant positive impact on the market as cash-strapped banks would not take advantage of the move.
The average share prices of cement sector dropped by 1.8 per cent, telecommunication by 0.6 per cent, bank by 0.5 per cent and pharmaceutical by 0.1 per cent.
EBL Securities in its daily market commentary said, ‘The morning buoyancy did not sustain as several investors opted for profit booking from their holdings and adopted cautious stance in the month of Ramadan.’
‘Moreover, the financial sector remained volatile with liquidity crisis, rising interest rate, huge nonperforming loans and pressure on the exchange rate that spilled over into the capital market,’ it said.
The share prices of energy sector advanced by 0.8 per cent, general insurance by 0.4 per cent and non-bank financial institutions by 0.3 per cent.
Market experts said a section of investors became positive in last couple of weeks following the government’s moves to prop up the capital market after the market lost around 650 points in last four months.
Out of the 345 issues traded on Sunday, 150 declined, 153 advanced and 44 remained unchanged.
Turnover on the bourse declined to Tk 358.16 crore on Sunday from Tk 376.22 crore in the previous session.
DSE blue-chip index DS30 dropped by 0.26 per cent, or 4.86 points, to close at 1,846.48 points.
Shariah index DSES shed 0.10 per cent, or 1.28 points, to finish at 1,219.02 points.
Fortune Shoes led the chart of turnover leaders with its shares worth Tk 20.15 crore changing hands on the day.
Bangladesh Shipping Corporation, Power Grid, Esquire Knit Composite, Oimex Electrode, Indo-Bangla Pharmaceuticals, Bangladesh Submarine Cable Company, Monno Ceramic Industries, LafargeHolcim Bangladesh and SS Steel were the other turnover leaders.
RN Spinning Mills gained the most on the day with a 10-per cent increase in its share prices while Dulamia Cotton was the worst loser, shedding 9.85 per cent.
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