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Stocks drop for 2nd day amid cautious trading

Staff Correspondent | Published: 23:40, Jul 14,2020

 
 

Dhaka stocks dropped for the second day on Tuesday in cautious trading as some investors continued selling shares for booking profits after a five-day rise.

DSEX, the key index of the Dhaka Stock Exchange, lost 0.18 per cent, or 7.36 points, to close at 4,082.14 points on the day after losing 9.90 points in the previous session.

Before the two-day decline, the DSEX had gained 118 points in five trading sessions.

The key index was positive in the first half of the trading session on Tuesday, but failed to maintain the vibe and closed the session in the negative territory as some investors continued booking profits, market operators said.

They said that investors apprehended that the market might not hold the recent positive momentum due to the worsening pandemic situation in the country.

Besides, there was a fear among investors that the Bangladesh Securities and Exchange Commission at any time might lift the floor price system it introduced to check free fall on the market amid the pandemic.

BSEC chairman Shibli Rubayat Ul Islam, however, on several occasions said that the ceiling would not be lifted until the situation became stable.

The BSEC on July 2 asked 61 directors of 22 companies to comply with 2 per cent minimum shareholding rules, which had helped the market rebound.

But, no director declared share purchase till Tuesday that might demoralise some investors, market operators said.

The market got some momentum with rising investors’ participation since July 8 when the bourse returned to its normal four-hour trading, they said.

Some investors had moved to buy shares at the lowest possible prices under the floor price system.

After some gains, a section of investors found an opportunity of selling off shares.

Investors remained worried about the coronavirus situation and its possible impact on the economy.

Of the 348 scrips traded on the DSE on Tuesday, 43 advanced, 120 declined, and 184 remained unchanged.

The turnover on the bourse dropped to Tk 289.31 crore on Tuesday compared with that of Tk 377.95 crore in the previous trading session.

EBL Securities in its daily market commentary said, ‘The index experienced selling pressure as investors inclined to booking profits. The investors mostly followed the cautious stance over the long-term impact of COVID-19 on the macro economy of the country, which hit banks’ interest rate, FDI, private savings and investment.’

DSE blue-chip index DS30 shed 0.14 per cent, or 2.02 points, to close at 1,374.04 points on the day.

The DSES index, however, gained 0.13 per cent, or 1.28 points, to settle at 952.13 points.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 19.17 crore changing hands on the day.

Square Pharmaceuticals, Indo-Bangla Pharmaceuticals, Paramount Textiles, Bangladesh Submarine Cables Company, Nahee Aluminium, Khulna Power Company, ML Dyeing, Orion Pharmaceuticals and Baraka Power were the other turnover leaders.

Republic Insurance Company gained the most on the day with a 9.90-per cent increase in its share prices while City Bank performed the worst, losing 6.89 per cent.

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