Stocks fall for 4th day on liquidity crunch

Staff Correspondent | Published: 00:00, May 16,2019

 
 

Dhaka stocks on Tuesday kept falling for the fourth session as liquidity shortage in the financial sector along with typical slow trading during Ramadan and ahead of the national budget announcement continued affecting trading on the bourse.
DSEX, the key index of Dhaka Stock Exchange, dropped by 0.42 per cent, or 21.88 points, to close at 5,196.03 points on Wednesday.
The index lost 79.88 points in last four trading sessions.
In identical trading pattern like that of Tuesday, DSEX briefly gained at the beginning of Wednesday’s trading session and fell afterwards to finish the session in the negative zone, said market operators.
Like the previous two sessions, shares on the bourse were traded at a snail’s pace on Wednesday as most of the investors were reluctant to trade or inject fresh funds, they said.
They said some of the investors, however, continued selling shares fearing further fall in the share prices.
Market operators said that the ongoing liquidity shortage in the financial market had dented the capacity of institutional investors like the merchant banks to invest at the market.
Besides, many investors were reluctant to inject fresh funds during Ramadan and before the national budget, they said.
Typically the market remains slow during Ramadan as people’s expenditure rise for Ramadan commodities and Eid shopping and before the budget as investors wait to see fiscal measures, they said.
The total number of executed trades fell further to 71,072 on Wednesday from 72,470 on Tuesday, which was the lowest number of total trades after March 28, 2018 when it was 69,725.
The turnover on bourse remained at 14-month low at Tk 256 crore on Wednesday although it rose slightly compared with that of Tuesday when it was Tk 251.36 crore.
‘The capital bourse of the country extended their losing streak for the fourth straight session as risk-average investors continued their selling pressure,’ said EBL Securities Ltd in daily market update.
‘The market experienced a sluggish session as investors were reluctant to make fresh investment amid lack of confidence and ongoing liquidity crunch,’ it said.
‘Moreover, investors’ sentiment regarding the market remained shaky and they adopted “lie low” approach following recent earnings declarations,’ said the brokerage house.
Out of the 341 issues traded on Wednesday, 173 declined, 103 advanced and 65 remained unchanged.
The average share prices of most of the sectors dropped on the day with pharmaceutical sector leading the chart.
Among the losing sectors, shares prices of pharma, paper, textile, cement and food fell by 1.1 per cent, 1.1 per cent, 0.8 per cent, 0.6 per cent and 0.6 per cent respectively.
The share prices of life insurance, jute, bank and non-bank financial institution sectors, however, rose by 1.2 per cent, 0.8 per cent, 0.2 per cent and 0.1 per cent respectively.
DSE blue-chip index DS30 fell by 0.69 per cent, or 12.69 points, to close at 1,812.82 points.
Shariah index DSES shed 0.76 per cent, or 9.15 points, to finish at 1,194.21 points.
BRAC Bank led the chart of turnover leaders with its shares worth Tk 17.07 crore changing hands on the day.
Fortune Shoes, Square Pharmaceuticals, Premier Bank, IFIC Bank, FAS Finance and Investment, Monno Ceramic Industries, Oimex Electrodes, Legacy Footwear and SS Steels Ltd were the other turnover leaders.
United Insurance gained the most on the day with a 9.9-per cent increase in its share prices while Daffodil Computers was the worst loser, shedding 4.64 per cent.

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