Stocks drop for 2nd day

Staff Correspondent | Published at 10:19pm on September 30, 2020

Dhaka stocks dropped for the second day on Wednesday as investors continued selling shares, especially those of sector-specific large capitalised companies.

DSEX, the key index of the Dhaka Stock Exchange, lost 0.38 per cent, or 19.08 points, to close at 4,963.29 points on the day after losing 21.25 points in the previous session.

The market was choppy throughout the session and settled in the negative zone as investors continued selling shares, fearing a fall in share prices, market operators said.

A group of investors started realising profits from last week that slowed down the market, they said.

The key index jumped by around 45 per cent in just three months and many low-profile companies shot up abnormally during the period.

Many large capitalised companies including banks and energy companies did not see expected gain during the period that made the market vulnerable.

Besides, the Bangladesh Securities and Exchange Commission has recently warned and punished some investors who were behind the abnormal surge in share prices of a number of companies.

The stringent actions made investors nervous on the trading floor, market operators said.

Moreover, investors were worried about the looming second wave of coronavirus outbreak in the country as they feared that the wave might hamper the recovery of the country’s economy, they said.

However, a section of retail investors still remained enthusiastic about the market.

Among the large capitalised companies, share prices of Grameenphone, Beximco, BRAC Bank and Square Pharmaceuticals dropped on the day.

Share prices of Walton Hi-Tech Industries hit the upper limit of the circuit breaker for the sixth day, soaring by 7.5 per cent, to end at Tk 757.1 a share on Wednesday. The company made its debut on September 23.

The insurance sector continued dominating the market as more investors moved to buy shares of insurance companies after observing significant surge in the companies’ share prices.

Besides, unit prices of mutual funds continued gaining on Wednesday as investors anticipated that the sector would revive after the securities regulator initiated to reform the sector.

The average share prices of energy, telecommunication and bank sectors dropped by 0.67 per cent, 0.56 per cent and 0.2 per cent respectively.

The share prices of mutual fund, engineering and non-bank financial institutions advanced by 5.08 per cent, 4.25 per cent and 1.43 per cent respectively.

Of the 357 scrips traded on the DSE on Wednesday, 191 declined, 132 advanced and 32 remained unchanged.

Turnover on the DSE advanced to Tk 914.37 crore on Wednesday compared with that of Tk 853.00 crore in the previous trading session.

Shariah index DSES shed 0.45 per cent, or 5.14 points, to settle at 1,120.38 points.

DSE blue-chip index DS30 also dropped by 0.53 per cent, or 9.14 points, to close at 1,695.99 points on the day.

Paramount Textiles led the turnover chart with its shares worth Tk 50.3 crore changing hands on the day.

Bangladesh Export Import Company, Sandhani Life Insurance Company, Asia Pacific Insurance, Beximco Pharmaceuticals, BRAC Bank, Pioneer Insurance, BD Finance, Republic Insurance and Nitol Insurance were the other turnover leaders on the day.