Dhaka stocks fall on pre-Eid sales

Staff Correspondent | Updated at 01:29am on August 14, 2018

Dhaka stocks dropped on Monday after a four-day gain as investors went for selling shares to book profit ahead of Eid-ul-Azha.
Eid-ul-Azha, one of the largest religious festivals of Muslims, will be celebrated across the country on August 22. Trading at the Dhaka Stock Exchange will remain closed from August 21 to 25 for Eid holidays and weekly holidays.
DSEX, the key index of the DSE, lost 0.52 per cent, or 28.45 points, to close at 5,378.72 points on Monday after gaining 58 points in the previous four trading sessions.
After a slight gain initially, the market moved downward sharply until the end of the session as investors went for profit-taking share sales ahead of Eid-ul-Azha, market operators said.
They said a section of investors began to cash their investments in stocks to meet the Eid-centric expenses.
Turnover on the DSE dropped to Tk 648.22 crore on Monday compared with that of Tk 818.39 crore in the previous trading session.
Besides, investors continued shedding shares of junk companies after the premier bourse on August 7 initiated a move to take harsh measures against 15 more low-profile firms amid an irrational rise in their share prices, market operators said.
Earlier, on July 18, the DSE delisted two low-profile companies — Rahima Food and Modern Dying — as the companies remained out of operation for long.
Out of the 42 traded ‘Z’ category companies, only seven gained on Sunday.
The average share prices of banks decreased by 0.4 per cent after leading the rally for four consecutive sessions.
Beside the bank sector, the average share prices of textile, pharmaceuticals and energy sectors also declined by 2.4 per cent, 1.0 per cent and 0.3 per cent respectively.
Market operators said a section of investors were also worried as most of the banks yet to bring down the lending rate to single digit. Finance minister AMA Muhith had announced August 9 as the fresh deadline for implementation of the rate cut decision after the banks had failed to do so by the previous deadline — July 1.
Grameenphone rebounded by 1.72 per cent on Monday after the company faced significant decline in its share prices in the previous two sessions on the news that the Bangladesh Telecommunication Regulatory Commission would ask Grameenphone to pay the government Tk 11,530 crore in dues as an audit found the company did not pay the amount over the years.
The average share prices of telecommunication and non-bank financial institutions rebounded by 1.1 per cent and 0.8 per cent respectively.
‘The capital bourse of the country witnessed negative vibe amid pre-Eid sale pressure. The index fell sharply in the early part of the session and continued to move towards the same direction for the rest part of the session as investors opted for profit booking on stocks holding,’ said EBL Securities in its daily commentary.
Of the 337 companies and mutual funds traded, 200 declined, 102 advanced and 36 remained unchanged.
DS30, the blue-chip index of the DSE, also lost 0.40 per cent, or 7.75 points, to close at 1,884.94 points.
Shariah index DSES also shed 0.63 per cent, or 7.84 points, to finish at 1,228.13 points.
BBS Cables led the turnover chart with its shares worth Tk 39.46 crore changing hands.
IFAD Autos, Shepherd Industries, Dragon Sweater, LankaBangla Finance, Aman Cotton Fibrous, Rangpur Dairy Food, Saiham Textile Mills, United Power Generation Company and Square Pharmaceuticals were the other turnover leaders.
Midas Finance gained the most on the day with a 9.66-per cent increase in its share prices, while Zeal Bangla Sugar Mills was the worst loser, shedding 9.45 per cent.