Dhaka stocks dip for 3rd week as banks, GP plunge

Dhaka stocks dropped last week, stretching the losing streak to the third consecutive week, as investors continued selling shares of banks and Grameenphone but a strong gain in the share prices of textile and insurance companies kept the fall in check.

DSEX, the key index of Dhaka Stock Exchange, lost 1.06 per cent, or 61.63 points, over the week to close at 5,750.29 points on Thursday, the last trading session of the week. DSEX lost 200 points in last three weeks.

The trading at the market remained negative for the first three sessions of the week as investors continued selling shares of large capitalised companies, market operators said.

The market, however, closed the last two sessions with brief gains as a section of investors went for bargain hunting targeting the insurance and textile sectors, they said.

Market operators said the bank and non-bank financial institution sectors remained dull in recent weeks as the media reported that banks had been struggling to get enough deposits in the current year.

Besides, investors were cautious about the looming deadline for banks for adjusting advance deposit ratio with the Bangladesh Bank-set limit, they said.

Bank and NBFI sectors led the fall in last week with bank declining by 2.4 per cent and NBFI by 1.9 per cent.

Share prices of Grameenphone plummeted by 3.85 per cent as Bangladesh Telecommunication Regulatory Commission on February 10 declared GP as significant market power.

Market operators said investors became concerned about the BTRC announcement as the media reported that the commission would impose additional conditions on GP for running its business as SMP.

Ten out the 12 traded multinational companies declined in the week that weighed heavily on the market.

Share prices of energy and pharmaceutical sectors also fell in the week.

The average share prices of general insurance, textile and life insurance advanced by 7.0 per cent, 3.3 per cent and 1.4 per cent respectively that saved the market from a bigger fall in last week.

The daily average turnover on DSE declined by 1.01 per cent to Tk 815.66 crore in last week from Tk 823.95 crore in the previous week.
Out of the 349 traded issues, 178 declined, 155 advanced and 16 remained unchanged.

DS30, the blue-chip index of DSE, shed 1.33 per cent, or 27.01 points, to close at 1,999.08 points.

Shariah index DSES also lost 0.90 per cent, or 11.96 points, to finish at 1,311.45 points.

Fortune Shoes led the turnover chart with its shares worth Tk 241.16 crore changing hands in the week.

United Power Generation Company, Monno Ceramic Industries, Bangladesh Submarine Cable Company, Legacy Footwear, Paramount Textile, Monno Jute Stafflers, Nurani Dyeing, Grameenphone and Genex Infosys were the other turnover leaders.

Global Insurance gained the most in the week with a 32.24-per cent increase in its share prices, while Meghna Condensed Milk was the worst loser, shedding 20.50 per cent.
Source: http://www.newagebd.net

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