Dhaka stocks dropped on Wednesday after three days of slight gains as investors increased their share sales after they found no visible improvement in the market situation.
DSEX, the key index of Dhaka Stock Exchange, lost 0.64 per cent, or 30.43 points, to close at 4,691.93 points on Wednesday after gaining only 12 points in the previous three sessions.
After an initial gain on Wednesday, the market started falling sharply and continued the negative vibe until the end of the session as investors increased their share sales after three days of slow movement at the market, market operators said.
They said that many investors were observing the movement at the market and could not find any improvement in the market scenario.
The general investors as well as many institutional ones lost appetite for investment due to continued bearishness at the market.
The capital market has been dull in last 10 straight months that reduced investment capacity of high net worth individual investors.
Many companies declared poor financial data that also made investors worried about the listed companies’ business progress.
Nine new companies were sent to the junk category (Z-category) as they failed to give dividend to their shareholders but the company used to give dividends every year, market operators said.
State-run Investment Corporation of Bangladesh declared loss of Tk 1.93 per share for July-September this year compared with profits of Tk 0.41 per share in the same period last year.
Profits of a number of prominent companies including GPH Isphat, Bashundhara Paper Mills, ACI Limited, Shahjibazar Power Company, BSRM Steel, Titas Gas and Premier Cement dropped in this period.
Market operators said many market intermediaries and institutions were struggling to run their business as their incomes were generated from the capital market.
EBL Securities in its daily market commentary said that investors were active on both sides of the fence.
The average share prices of bank, non-bank financial institution and pharmaceutical sectors dropped by 0.6 per cent, 0.5 per cent and 0.4 per cent respectively on Wednesday.
Turnover on the DSE increased to Tk 406.34 crore on Wednesday from Tk 380.83 crore in the previous day.
Out of the 340 scrips traded on the day, 161 declined, 132 advanced and 47 remained unchanged.
DSE blue-chip index DS30 decreased by 0.95 per cent, or 15.91 points, to close at 1,645.30 points.
Shariah index DSES shed 1.00 per cent, or 10.94 points, to end at 1,075.44 points.
Grameenphone led the turnover chart with its shares worth Tk 21.49 crore changing hands on Wednesday.
Square Pharmaceuticals, National Tubes, Asian Insurance, Wata Chemicals, Sonar Bangla Insurance, Beacon Pharmaceuticals, Genex Infosys, Pioneer Insurance and Stylecraft were the other turnover leaders.
BD Autocars gained the most on the day with a 9.04-per cent increase in its share prices while Wata Chemicals performed the worst, losing 18.33 per cent.
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