Stocks end flat amid rising bad loans

Staff Correspondent | Published: 00:00, Nov 29,2019


Dhaka stocks inched up on Thursday as most of the investors became cautious amid swelling bad loans in the country’s banking sector while a section of others kept buying undervalued shares.

DSEX, the key index of Dhaka Stock Exchange, added just 0.02 per cent, or 1.08 points, to close at 4,731.43 points on Thursday.

The DSEX gained 43 points in last four sessions.

After a slight hike, the market started falling on Thursday as the media reported that banks’ defaulted loans surged further despite the government’s measures to halt the run.

Banks’ defaulted loans ballooned to Tk 1,16,288 crore in September after adding Tk 3,863 crore in the July-September period as the special loan rescheduling policy encouraged borrowers to be chronic defaulters, experts said.

The government continuously failed to rein in non-performing loans in the banks and investors find no respite from it that has become a paramount concern in the financial sector.

The market on Thursday closed with a single-point gain as some investors kept buying undervalued shares after recent rout.

Some institutional investors took the bearish market as an opportunity of maximising their profits while many investors felt it safe to sell off their holdings after a slight gain.

The DSEX lost more than 1,200 points in last 10 months that had lowered the level of the investors’ confidence.

Among the large capitalised companies, share prices of LafargeHolcim Bangladesh, LankaBangla Finance and IDLC Finance increased on the day that contributed most to keeping the market afloat.

LafargeHolcim Bangladesh in a web post on Tuesday said that the High Court Division of the Supreme Court of Bangladesh passed its judgment approving the scheme of amalgamation of Holcim Cement (Bangladesh) Limited with LafargeHolcim Bangladesh Limited.

Turnover on the DSE dropped to Tk 430.2 crore on Thursday from Tk 564.22 crore in the previous day.

The average share prices of cement sector advanced by 5.86 per cent, general insurance 1.31 per cent and non-bank financial institution 0.92 per cent.

Energy, telecommunication and bank dropped by 0.89 per cent, 0.57 per cent and 0.20 per cent respectively.

Out of the 343 scrips traded on Thursday, 162 advanced, 131 declined and 50 remained unchanged.

DSE blue-chip index DS30 gained 0.08 per cent, or 1.37 points, to close at 1,647.7 points.

Shariah index DSES also added 0.01 per cent, or 0.18 points, to end at 1,082.16 points.

Fortune Shoes led the turnover chart with its shares worth Tk 14.78 crore changing hands on the day.

National Tubes, Square Pharmaceuticals, Paramount Textiles, LankaBangla Finance, Kattali Textiles, LafargeHolcim Bangladesh, Doreen Power, Alif Manufacturing Company and Premier Bank were the other turnover leaders.

Alif Manufacturing Company gained the most on the day with a 10-per cent increase in its share prices while ML Dyeing Limited performed the worst, losing 15.03 per cent.

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