Stocks return to negative zone amid jitters

Staff Correspondent | Published: 22:40, Mar 03,2021

 
 

Dhaka stocks dropped on Wednesday after a two-day increase as some investors went for selling shares amid market jitters.

DSEX, the key index of the Dhaka Stock Exchange, shed 0.36 per cent, or 20.19 points, to close at 5,488.07 points on Wednesday after gaining 103.4 points in the previous two sessions.

The key index finished Wednesday’s session negative as investors went for selling shares after a two-day gain, market operators said.

They said investors found it suitable to offload their holdings after the two-day gain amid prolonged bearish trend on the market.

Share prices of many companies decreased significantly in recent times and many investors were waiting for a rise to take exit with the lowest possible losses, they said.

Share prices of a number of large capitalised companies, including BEXIMCO, Beximco Pharmaceuticals and LankaBangla Finance dropped on the day.

Share prices of LafargeHolcim Bangladesh declined by 2.85 per cent. The company declared 10 per cent cash dividend and reported 35 per cent rise in profits in 2020 compared with that in the previous year.

Share prices of the non-bank financial institution sector resumed falling on Wednesday after a rise in the previous day.

The sector has been losing prices after the Bangladesh Bank on February 24 issued a circular that the NBFIs which have classified loan ratio more than 10 per cent and capital adequacy ratio below 10 per cent will not be allowed to declare any dividend.

Investors have been grappling with various issues, including the setting of ceiling on margin loan rate, approval of a number of companies’ initial public offerings in a short period of time and repeated changes in policies by the Bangladesh Securities and Exchange Commission, market operators said.

Turnover on the DSE dropped to Tk 775.84 crore on Wednesday compared with that of Tk 833.94 crore in the previous session.

Of the 359 scrips traded on the DSE on Wednesday, 131 advanced, 126 declined and 99 remained unchanged.

DS30, a composition of 30 large capitalised companies, declined by 0.75 per cent,  or 15.85 points, to close at 2,092.3 points on the day.

Shariah index DSES also shed 0.24 per cent, or 3.1 points, to settle at 1,242.63 points.

BEXIMCO led the turnover chart with its shares worth Tk 104.78 crore changing hands on Wednesday.

Robi, Beximco Pharmaceuticals, LankaBangla Finance, LafargeHolcim Bangladesh, Summit Power, GBB Power, Energypac Power Generation, IDLC Finance and Square Pharmaceuticals were the other turnover leaders on the day.

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