Stocks drop as banks, GP lose stream

Staff Correspondent | Published at 12:05am on August 30, 2018

Dhaka stocks dipped on Wednesday as investors went for selling shares to book some profits, especially from banks and Grameenphone shares.
DSEX, the key index of Dhaka Stock Exchange, dropped 0.28 per cent, or 16.16 points, to close at 5,603.25 points on Wednesday after gaining 34 points in the previous session. The market had dropped on Monday after a five-day gain.
The market began with positive vibe on Tuesday, gaining 21 points within 10 minutes of the day, but it went down soon after as investors went for profit taking from scrips, especially bank stocks, market operators said.
They said the market had been choppy since Monday after the five-day gain.
Media reports on the defaulted loan situation in the country’s banking system also dampened the investors’ mood, they said.
On top of that, most of the scheduled banks are shilly-shallying to implement single-digit interest rates as per a government direction, they said.
However, investors had bought financial stocks in recent days in the wake of a series of disciplinary measures against low-profile companies, market operators said.
A good number of investors expected that the market would remain positive ahead of the prime minister Sheikh Hasina’s scheduled visit to the Bangladesh Securities and Exchange Commission on September 12 to attend the 25th anniversary programme of the commission, they said.
The average share prices of bank, miscellaneous, telecommunication and textile sectors dropped by 0.9 per cent, 0.7 per cent, 0.6 per cent and 0.5 per cent respectively on Tuesday.
Out of the 30 traded bank scrips, 23 dropped, just four increased and three remained unchanged.
The share prices of a number of non-bank financial institutions including IPDC Finance, National Housing and Finance and International Leasing and Financial Services continued to surge that upped the average prices of the sector.
The share prices of energy and NBFIs increased by 1.53 per cent and 0.40 per cent respectively.
Investors’ participation on the trading floor continued rising after the resumption of trading at the bourse on Sunday after a five-day Eid-ul-Azha and weekly holidays.
The turnover on the DSE advanced further to Tk 633.38 crore on Wednesday compared with that of Tk 611.71 crore in the previous trading session.
‘The morning buoyancy did not sustain as several investors shifted their focus towards profit taking, which triggered the bourse to settle in red on Tuesday,’ said EBL Securities in its daily market commentary.
Of the 335 companies and mutual funds traded, 182 declined, 111 advanced and 41 remained unchanged.
DS30, the blue-chip index of the DSE, also lost 0.32 per cent, or 6.49 points, to close at 1,967.81 points.
Shariah index DSES also shed 0.37 per cent, or 4.83 points, to finish at 1,270.08 points.
United Power Generation Company led the turnover chart with its shares worth Tk 28.61 crore changing hands.
IPDC Finance, Baraka Power, Bangladesh Export Import Company, Khulna Power Company, Square Pharmaceuticals, Nahee Aluminum, BBS Cables, Active Fine Chemicals and National Housing Finance were the other turnover leaders.
Prime Textile gained the most on the day with a 9.96-per cent increase in its share prices, while Samata Leather was the worst loser, shedding 9.87 per cent.