Stocks extend losing streak to fifth day with turnover falling

Staff Correspondent | Published at 11:51pm on January 10, 2018

Dhaka stocks declined on Wednesday, extending the losing streak to the fifth session, with a decreased participation of investors as many investors preferred to remain on the sidelines while some of them kept selling shares to avoid losses.
DSEX, the key index of Dhaka Stock Exchange, lost 0.42 per cent, or 26.08 points, to close at 6,172.44 points on the day.
The DSEX lost 145.80 points in last five sessions.
The equity market was flat during the morning session that moved downward soon as investors kept selling shares, fearing that the market could fall further, market operators said.
They said that the prolonged dullness at the market that started from the beginning of this year made the investors cautious on the trading floor and also prompted them to take out their investment from the market to avoid any unexpected losses.
As a result, the turnover at the DSE declined to Tk 439.30 crore compared with that of Tk 448.12 crore in the previous session.
The new move of the central bank to force banks to lower their advanced deposit ratio had broken a six-day gaining spell at the market on December 4.
Investors apprehended that the move could reduce the fund flow to the capital market, they said.
Recent media reports over the weakness of the country’s financial sector also made investors concerned about the market position, stockbrokers said.
As a result, financial sectors extended their losing spell for another session as bank and non-bank financial institutions lost 0.8 per cent and 0.4 per cent respectively.
Besides, cement, energy and engineering also joined the downward trend.
Among the prominent scrips, Lafarge Surma, City Bank and United Commercial Bank were the worse losers on Wednesday.
On the other hand, a marginal gain in the average share prices of food, pharmaceuticals and telecommunication by 0.3 per cent, 0.12 per cent and 0.1 per cent saved the market from further fall.
Furthermore, the share prices of Square Pharmaceuticals, British American Tobacco and Grameenphone surged on the day.
‘The capital bourse of the country observed notable price correction for the fifth consecutive session today [Wednesday] as profit booking continued,’ said EBL Securities in its daily market commentary.
‘The core index remained downward throughout the session as investors tried to remain on the sidelines amid liquidity crisis. Thus, shaky investors booked profit on bank, cement and miscellaneous sectors,’ it said.
Of the 335 companies and mutual funds traded, 189 declined, 104 advanced, and 42 remained unchanged.
DS30, the blue-chip index of the DSE, also shed 0.41 per cent, or 9.28 points, to finish at 2,253.50 points.
Shariah index DSES lost 0.24 per cent, 3.44 points, to close at 1,387.96 points.
IFAD Autos led the turnover chart on the day with its shares worth Tk 31.17 crore changing hands.
Alif Manufacturing Company, Paramount Textiles, National Tubes, Lafarge Surma, BD Thai, Golden Harvest Agro Industries, Al-Arafah Islami Bank, Dragon Sweater and Confidence Cement were the other turnover leaders.
Bangladesh Autocars increased most with a 4.17-per cent rise in its share prices, while Alif Manufacturing Company was the worst loser, shedding 7.92 per cent.