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Stocks fall for 4th day

Staff Correspondent | Published: 23:05, Oct 27,2020

 
 

Dhaka stocks declined on Tuesday, stretching the losing streak to the fourth session as investors kept selling shares amid poor financial disclosures by a number of listed companies.

DSEX, the key index of the Dhaka Stock Exchange, lost 0.49 per cent, or 24.04 points, to close at 4,867.96 points on the day.

The DSEX lost 49.2 points in the last four sessions.

Trading on the country’s stock market remained closed on Monday due to a public holiday.

After a slight rise at the beginning of Tuesday’s session, the key index started falling to finish the session in the negative zone as investors continued selling shares amid a market slowdown, market operators said.

The insurance sector kept dominating the market with an increased participation of investors, they said.

Though the other sectors declined on Tuesday, share prices of insurance scrips jumped on the day as more investors joined the rally by selling off shares of companies in other sectors, market operators said.

Out of the 48 traded insurance companies, 36 advanced and 12 declined on Tuesday.

Share prices of the general insurance sector advanced by 4.4 per cent on Tuesday with the sector accounting for 40 per cent of day’s total turnover.

Market operators said that low-profile insurance scrips continued dominating the market that puzzled investors.

Besides, a number of companies declared mixed financial disclosures for the year 2020.

Share prices of Coppertech Industries plunged by 2.36 per cent after the company’s profits halved in 2020 compared with that in the previous year, and it declared 2.5 per cent cash dividend after being listed in August, 2019.

Share prices of Walton Hi-Tech Industries plunged for the second day to end at Tk 663.1 a share on Tuesday after the company witnessed a sharp fall in profits.

The earnings per share of the company halved to Tk 24.21 in FY20 against Tk 45.87 in the previous year.

Share prices of Titas Gas, Renata soared on Tuesday after the companies declared better dividends for the year 2020.

The market has also been grappling with an overflow of initial public offerings as the securities regulator approved IPOs of 11 companies in around three months that stuck a huge amount of funds on the primary market, market operators said.

Share prices of Associated Oxygen Limited, which made its debut on Sunday on the stock exchange at Tk 10 a share, shot up by the maximum possible limit of 50 per cent for the second day on Tuesday.

Share prices of the company closed at Tk 22.5 a share on Tuesday.

The turnover on the DSE advanced to Tk 1,000 crore on Tuesday compared with that of Tk 885.96 crore in the previous trading session.

DSE blue-chip index DS30 shed 0.44 per cent, or 7.5 points, to close at 1,675.4 points on the day.

Shariah index DSES dropped by 0.57 per cent, or 6.41 points, to settle at 1,103.05 points.

Of the 357 scrips traded on the DSE on Tuesday, 85 advanced, 205 declined and 66 remained unchanged.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 46.27 crore changing hands on Tuesday.

LankaBangla Finance, Sandhani Life Insurance Company, BRAC Bank, Bangladesh Export Import Company, Global Insurance, Express Insurance, Pioneer Insurance, Square Pharmaceuticals and Eastland Insurance were the other turnover leaders on the day. 

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