Dhaka stocks dropped for the second day on Tuesday in cautious trading as investors kept selling shares since persisting liquidity concern coupled with trading debut of Runner Automobiles at the bearish market made the market volatile.
DSEX, the key index of Dhaka Stock Exchange, declined by 0.74 per cent, or 39.29 points, to close at 5,236.84 points on Tuesday after losing 59.55 points in the previous session.
In line with the previous day, the market started falling from the very beginning of the day and eventually ended in the negative zone as investors continued selling shares, market operators said.
They said a section of investors adjusted their portfolios to buy shares of new company Runner Automobiles that increased the share prices of the company by 33 per cent to close at Tk 99.80 per share on its debut on the stock exchange.
Runner raised Tk 100 crore from the capital market by issuing its shares at Tk 67-75 each.
Investors expected that the share prices of the company might surge at the market, market operators said, adding that a section of investors, however, got panicked as they had little appetite for any new scrip at the volatile market.
Besides, investors remained worried about the liquidity shortage in the financial market that made all the recent regulatory efforts to revive the market futile, they said.
Stock market regulator Bangladesh Securities and Exchange Commission, Bangladesh Bank and the finance ministry have announced various incentives and rule changes to revive the market which remained volatile in recent months. But, the dearth of liquidity acted as a bar to reviving the investors’ confidence in the market, market operators said.
EBL Securities in its daily market commentary said, ‘The broad index observed a nosedive amid daylong selling pressure as investors has lost confidence and eventually the DSEX settled below 5,300 points as many investors followed cautious stance during the month of Ramadan due to liquidity crunch persisted in the money market.’
Besides, the media reported that Bangladesh Merchant Bankers Association had sent a proposal to BSEC to reduce the share lock-in period for placement shares that made investors worried as the BSEC’s recent decision on the issue had made investors happy.
The average share prices of telecommunication sector declined by 1.1 per cent, bank by 0.8 per cent, food by 0.5 per cent and energy by 0.5 per cent.
Out of the 344 issues traded, 217 declined, 87 advanced and 43 remained unchanged.
Turnover at the bourse also dipped to Tk 351.69 crore from Tk 387.73 crore in the previous session.
DSE blue-chip index DS30 dropped by 0.57 per cent, or 10.58 points, to close at 1,822.78 points.
Shariah index DSES shed 0.32 per cent, or 3.93 points, to finish at 1,195.22 points.
Runner Automobiles led the chart of turnover leaders with its shares worth Tk 35.46 crore changing hands on the day.
Fortune Shoes, SK Trims Ltd, Bangladesh Submarine Cable Company, BRAC Bank, Doreen Power, Eastern Cables, National Tubes, Esquire Knit Composite and Bangladesh Shipping Corporation were the other turnover leaders.
Global Insurance Company gained the most on the day with a 9.85-per cent increase in its share prices while Uttara Bank was the worst loser, shedding 8.85 per cent.
Bangladesh Bank going to deposit Tk 760 crore out of Tk 856 crore to state-run Investment Corporation of Bangladesh today to revive the capital market by injecting the fund.
BSEC spokesperson and executive director Saifur Rahman told New Age that ICB could invest the fund from today.
ICB gets the fund with 4 per cent interest rate with the condition that it would invest the fund in the capital market and cannot fixed deposit with banks, and it must keep the fund in a separate account, he said.
The rest Tk 96 crore will be distributed to the capital market intermediaries on the first-come-first-get basis.