Dhaka stocks turn negative again after 2-day gain

Staff Correspondent | Published: 00:00, Sep 10,2019

 
 

Dhaka stocks returned to the negative zone on Monday after a gain in the previous two sessions as nervy investors resumed sell-offs with prolonged volatility at the market hurting the investors’ confidence.

DSEX, the prime index of the Dhaka Stock Exchange, lost 0.49 per cent, or 24.83 points, to close at 5,008.96 points on Monday after gaining 51.47 points in the previous two sessions.

Before the two-day gain, the DSEX had lost 192 points in six sessions.

After a flat opening, the market started falling sharply and finished in the negative zone as investors resumed share sales, market operators said.

They said that investors had been grappling with prolonged bearish trend at the market, liquidity crisis in the country’s financial sector, and Grameenphone’s tussle with the telecom regulator.

The downward trend wiped out around Tk 45,000 crore of market capitalisation in last seven months.

Market experts said lack of confidence on the part of investors was the prime reason for the current sluggishness.

Attempts from the government and market regulator Bangladesh Securities and Exchange Commission to recover confidence of investors were in vain, they said.

The BSEC chairman at a meeting with the capital market stakeholders said that finance minister AHM Mustafa Kamal would encourage banks to invest in the market.

State-run Investment Corporation of Bangladesh managing director Abul Hasem also said that the ICB would invest more in the market and called the merchant bankers to invest more in the market.

The share prices of some low-capitalised companies continued surging abnormally without any price sensitive information.

The share prices of Monno Jute Stafflers continued soaring since July 22 and closed at Tk 1,927 per share on Monday from Tk 688 per share. The share prices of the company witnessed a fall only in five sessions in the period.

EBL Securities in its daily commentary said, ‘Prolonged bearish vibe in the market kept investors in gloomy mood and overall participation remained shaky. However, market turnover increased slightly from last day’s [Sunday] session, driven mainly by selling pressure.’

The average share prices of most of the large capitalised sectors fell on the day.

The share prices of energy sector dropped by 2.2 per cent, textile 1.4 per cent, non-bank financial institution 0.9 per cent and bank 0.7 per cent.

A 13-per cent or Tk 51 fall in share prices of United Power Generation weighed heavily on the index on Monday.

However, the share prices of telecommunication and pharmaceutical sectors advanced by 2.7 per cent and 0.5 per cent respectively.

Out of the 352 scrips traded, 237 declined, 74 advanced and 42 remained unchanged.

Turnover on the bourse increased to Tk 407.03 crore on Monday from Tk 371.61 crore in the previous session.

DS30, the blue-chip index of the DSE, shed 0.48 per cent, or 8.64 points, to close at 1,758.11 points.

DSE Shariah index DSES lost 0.16 per cent, or 1.97 points, to close at 1,169.50 points.

National Tubes led the turnover chart with its shares worth Tk 22.02 crore changing hands.

IBN SINA Pharmaceuticals, Monno Ceramics, United Power Generation Company, Stylecraft Limited, Monno Jute Stafflers, Wata Chemicals, Beacon Pharmaceuticals, IT Consultant and Grameenphone were the other turnover leaders.

Al-Haj Textile gained the most on the day with a 9.77-per cent increase in its share prices while United Power Generation Company was the worst loser, shedding 13.12 per cent.  

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