Stocks dip for 2nd day as bank shares extend loss

Staff Correspondent | Updated at 11:58pm on September 10, 2018

Dhaka stocks fell for the second session on Monday amid strong trading as investors continued selling shares for taking profits from the large-capitalised scrips including financial ones.
DSEX, the key index of the Dhaka Stock Exchange, lost 0.17 per cent, or 9.67 points, to close at 5,540.11 points on Monday after losing 24.46 points in the previous session.
The market was upbeat in most of the time during Monday’s session but dropped in late hours, closing the day with a slight loss as investors continued selling shares from the large-capitalised sectors, especially from the financial sectors, market operators said.
The average share prices of banks and non-bank financial institutions dropped by 0.7 per cent and 0.4 per cent respectively.
Out of the 30 traded bank scrips, 22 declined, just five advanced, and three remained unchanged.
Market experts said that the investors were seen rebalancing their portfolios every other day that reflected their lack of confidence over the market.
They said a section of investors were also assessing the possible impact of the upcoming national elections on the financial sector which had been passing through a tough time. The general elections are due by January next year.
Besides the financial companies, the share prices of all the large-capitalised sectors witnessed price corrections on Monday.
The average share prices of telecommunication, pharmaceuticals, food and energy also declined on the day.
Investors on Monday bought shares mostly of small- and medium-capitalised companies. The average share prices of ceramic, engineering, textile and services advanced by 1.12 per cent, 1.1 per cent, 0.5 per cent and 0.48 per cent respectively.
The share prices of miscellaneous, telecommunication and pharmaceuticals also declined on the day.
The turnover at the bourse got momentum after the Chinese consortium of Shenzen and Shanhai stock exchanges entered the
DSE board after completing all procedures of purchasing the bourse’s 25 per cent shares.
The turnover on the DSE increased to Tk 965.35 crore on Monday compared with that of Tk 900.04 crore in the previous trading session.
‘The market started with positive vibe displaying modest volatility and in the last hour index shifted downward as investors booked profits from their holdings, especially large-cap stocks,’ said EBL Securities in its daily market commentary.
Of the 335 companies and mutual funds traded, 177 declined, 106 advanced and 46 remained unchanged.
DS30, the blue-chip index of the DSE, also dropped by 0.32 per cent, or 6.31 points, to close at 1,941.07 points.
Shariah index DSES shed 0.30 per cent, or 3.92 points, to finish at 1,272.16 points.
Active Fine Chemicals led the turnover chart with its shares worth Tk 78.12 crore changing hands.
Khulna Power Company, BBS Cables, Shasha Denims, Summit Power, IFAD Autos, Saif Powertec, Nahee Aluminum, Cement and Fortune Shoes were the other turnover leaders.
National Life Insurance Company gained the most on the day with a 9.96-per cent increase in its share prices, while National Housing Finance was the worst loser, shedding 8.83 per cent.