Dhaka stocks back in red zone again

Image: Bizbangladesh.net
Dhaka stocks fell back into the losing trail in the past week after a surge in the week before, as investors’ concern over the stability of the market trickled in again.

The DSEX, the key index of the DSE, declined by 0.62 per cent or 30.65 points over the past week to close at 4,937.82 points on Thursday, the last trading session of the week after gaining 112.48 points in the previous week.

Before a gain in the previous week, the DSEX lost 381 points in four weeks.

The market was volatile, losing most of the sessions of the past week as investors remained cautious on the trading floor.

The core index had soared in the previous week following the Bangladesh Bank’s move to provide liquidity support to the capital market and expectations regarding resolution of Grameenphone’s audit dispute with the telecom regulator.

On September 22, the BB allowed scheduled banks to borrow funds from it at low interest rate to invest in the capital market.

The investors over the past week, however, remained doubtful of whether the banks would take the opportunity to invest in the ailing capital market and the prolonged feud between GP and telecom regulator would be settled in near future.

They said that the overall market scenario had been gloomy in the last eight months, adding to concerns about the prospects of the market.

The institutional investors were also reluctant to inject funds in the market amid fears of further falls in stock prices.

EBL Securities, in its weekly market commentary, said that the capital market had witnessed a choppy session throughout the week and ended in the loser’s fence.  Investors’ participation was dry while average turnover had increased fractionally by 0.05 per cent than that of the previous week standing at Tk 391 crore.

‘This indicates that due to the recent volatility in the market, investors were yet to regain confidence to participate in the market coherently amid government measures to support and boost the capital market,’ it said.

Average share prices of the telecommunication sector dropped by 3.7 per cent, energy by 1.2 per cent, non-bank financial institution by 1.2 per cent and bank sector by 0.5 per cent during the week. Among the large capitalised companies, plunge in share prices of United Power Generation Company, Grameenphone, Investment Corporation of Bangladesh and Square Pharmaceuticals fuelled market volatility over the past week.

The ‘Z’ category companies received attention on the last trading session on Thursday after the Bangladesh Securities and Exchange Commission on Wednesday announced that the listed companies could declare cash dividend out of the profits they made in a particular year despite having accumulated losses.

The daily average turnover on the DSE inched up to Tk 391.77 crore last week from Tk 391.57 crore in the previous week.

Out of the 355 issues traded in the week, 193 declined, 137 advanced and 25 remained unchanged.

DS30, the blue-chip index of DSE, dropped 0.77 per cent or 13.71 points, to close at 1,755.24 points.

Shariah index DSES shed 1.06 per cent, or 12.15 points, to finish at 1,136.37 points.

National Tubes led the turnover chart with shares worth Tk 57.41 crore changing hands in the week.

Monno Jute Stafflers, Bangladesh Submarine Cable Company, Bangladesh Shipping Corporation, Monno Ceramic Industries, Beacon Pharmaceuticals, Stylecraft, Sonar Bangla Insurance, JMI Syringe and Summit Power were the other turnover leaders.

CAPM IBBL Islamic Mutual Fund gained the most in the week with a 51.43-per cent increase in its unit prices while Mithun Knitting and Dyeing performed the worst, shedding 18.52 per cent.
Source: http://www.newagebd.net

Tags :

Share this news on:

Previous Story

Trending Topics

Archive