Stocks drop for 3rd day as  poor reports keep coming

Staff Correspondent | Published: 00:00, Nov 15,2019

 
 

Dhaka stocks dropped for the third day on Thursday as many listed companies witnessed a fall in their profits in the July-September quarter, making investors more nervous on the trading floor.

DSEX, the key index of Dhaka Stock Exchange, lost 0.56 per cent, or 26.80 points, to close at 4,710.36 points on Thursday.

The DSEX lost 70 points in last three sessions.

After a slight gain at the beginning, the market started falling and maintained the negative vibe until the end of the session as investors kept selling shares amid poor financial declarations by listed companies, market operators said.

They said more companies announced poor accounts for the period of the first quarter of this fiscal year 2019-20 that made investors worried.

Profits of Coppertech Industries, which entered the country’s capital market amid controversies, dropped by 53.57 per cent to Tk 0.13 per share in the first quarter of this fiscal year compared with that in the same period of the previous fiscal year.

Besides, Aman Feed, Shepherd Industries and Alif Manufacturing Company also witnessed a fall in their profits in the quarter this fiscal year compared with that in the same period of the previous fiscal year.

Earlier, state-run Investment Corporation of Bangladesh declared loss of Tk 1.93 per share for July-September this year compared with that of Tk 0.41 per share in the same period last year.

Profits of ACI Limited, Shahjibazar Power Company, BSRM Steel, Titas Gas and Premier Cement also fell in the period.

The capital market remained bearish for almost 10 straight months.

The prolonged bearish trend at the market has become unbearable for the general investors as well as the institutional ones, market operators said.

They said the market intermediaries had been struggling to run their business and the high net-worth individual investors were getting irritated by the relentless erosion in share prices.

Market operators said that the capital market was grappling with a number of issues including volatility in the financial sector, poor corporate governance, lack of regulatory measures to  improve the market, and approval of weak initial public offerings.

The average share prices of pharmaceutical sector decreased by 1.47 per cent, telecommunication 1.09 per cent, bank 0.56 per cent and non-bank financial institution 0.11 per cent on Thursday.

EBL Securities in its daily market commentary said large cap stocks namely GP, Square Pharma, Reneta, UPGDCL led the market fall while investors continued offloading their holdings from the beginning of the session mainly in fear of market volatility.

Turnover on the bourse plunged to Tk 319.09 crore on Thursday from Tk 389.95 crore in the previous day.

Out of the 350 scrips traded on the day, 154 declined, 132 advanced and 59 remained unchanged.

The DSE blue-chip index, DS30, shed 0.53 per cent, or 8.80 points, to close at 1,638.24 points. Shariah index DSES dipped by 0.63 per cent, or 6.94 points, to end at 1,080.91 points.

Renata Limited led the turnover chart with its shares worth Tk 14.05 crore changing hands on the day.

National Feed Mills gained the most on the day with a 9.87-per cent increase in its share prices while Khulna Printing & Packaging performed the worst, losing 8.49 per cent.

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