Stocks inch down after 2-day gain

Staff Correspondent | Published: 21:44, Sep 27,2020


Dhaka stocks dropped marginally on Sunday after two days of slight rise as a section of investors, worried about a possible second wave of COVID-19 outbreak, continued selling shares but other investors remained positive.

DSEX, the key index of the Dhaka Stock Exchange, shed 0.14 per cent, or 7.16 points, to close at 4,971.61 points on the day after gaining 8.64 points in the previous two sessions.

After a slight gain at the beginning of Sunday’s session, the key index moved downwards and finished the session in the negative trajectory as investors went on selling shares, fearing a fall in share prices after huge gains.

The DSEX had gained around 1,150 points in the last three months, riding on the back of lower interest rate and speedy economic recovery, but has lost the stream since September 20.

The stringent actions and warnings to the market manipulators made investors cautious on the trading floor, market operators said.

However, a section of investors went for buying shares amid expectations of better movements on the market, they said.

The Bangladesh Bank on September 24 reduced the repurchase agreement rate by 0.5 percentage points to 4.75 per cent for formation of special funds by the banks for investment on the stock market.

Market operators said that investors anticipated that the reduction in REPO rate might encourage banks to form special funds and invest in the market.

Investors continued buying shares from the insurance sector, hoping that profits of the insurance companies would rise in the coming days.

The insurance regulator set the maximum limit of commission charging from insurance companies at maximum 15 per cent.

Share prices of Walton Hi-Tech Industries hit the upper limit of the circuit breaker for the third day, soaring by 7.5 per cent, to end at Tk 609.5 per share on Sunday.

The company made its debut on September 23.

EBL Securities in its daily market review said, ‘Though the market started with a positive vibe but failed to maintain its growing momentum in late hours as investors decided to take profits on their holdings, ending the session down.’

The average share prices of non-bank financial institution, general insurance and bank sectors advanced by 5.1 per cent, 2.5 per cent and 0.4 per cent respectively.

Share prices of telecommunication, textile and pharmaceutical sectors dropped by 1.4 per cent, 1.2 per cent and 0.5 per cent respectively.

Of the 357 scrips traded on the DSE on Sunday, 210 declined, 106 advanced and 41 remained unchanged.

Turnover on the DSE advanced to Tk 1,034.42 crore on Sunday compared with that of Tk 880.52 crore in the previous trading session.

Shariah index DSES lost 0.41 per cent, or 4.71 points, to settle at 1,121.59 points.

DSE blue-chip index DS30, however, dropped by 0.61 per cent, or 10.40 points, to close at 1,690.78 points on the day.

Sandhani Life Insurance Company led the turnover chart with its shares worth Tk 25.76 crore changing hands on the day.

Sonar Bangla Insurance, Beximco Pharmaceuticals, Lanka Bangla Finance, Eastland Insurance Company, Rupali Insurance Company,

Bangladesh Export Import Company, Express Insurance, Pioneer Insurance and Provati Insurance were the other turnover leaders on the day.

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