Dhaka stocks drop as financial scrips face sell-offs

Dhaka stocks dropped on Sunday after a slight gain in the previous two sessions as investors went for selling financial shares in cautious trading.
DSEX, the key index of Dhaka Stock Exchange, lost 0.54 per cent, or 31.56 points, to close at 5,714.27 points on Sunday after gaining 21 points in the previous two sessions.
The market began to dip sharply from the very beginning of the day and closed in the negative zone as investors went for selling shares amid cautiousness, market operators said.
They said that investors were worried about the financial scrips as the media reported that the banking sector was about to face liquidity crunch, struggling for deposits while Bangladesh Bank approved three more new banks that might worsen the situation.
Despite the government’s pledge to cut down interest rate to single digit, the interest rate has been rising due to the increased demand for the funds that made investors concerned about the sector, they said.
Besides, many investors are waiting for the central bank’s decision about any time extension for banks for adjusting advance deposit ratio, market operators said.
The turnover on the bourse plunged to Tk 580.70 crore on Sunday from Tk 684.48 crore in the previous trading session.
Sunday’s turnover was the lowest after January 1 when it was Tk 530.17 crore.
‘Investors chose sell-off position throughout the session that caused the bourse to settle in the negative zone and also investors were taking a “cautious” stance ahead of year-end declarations by the companies,’ said EBL Securities in its daily market commentary.
Bank sector’s indomitable influence on the index affected negatively, it said.
The average share prices of bank and non-bank financial institution slumped by 1.20 per cent and 1.15 per cent respectively.
Out of the 30 traded bank scrips, 23 declined, just one advanced and six remained unchanged while out of the 23 NBFIs, 17 declined, three advanced and three remained unchanged.
Besides, share prices of textile, cement and energy sectors also dropped by 1.06 per cent, 0.57 per cent and 0.54 per cent respectively.
On the other hand, share prices of general insurance, telecommunication and pharmaceutical sectors advanced by 0.7 per cent, 0.2 per cent and 0.1 per cent respectively.
Out of the 347 issues traded on the day, 225 declined, 77 advanced and 41 remained unchanged.
DSE blue-chip index DS30 shed 0.26 per cent, or 5.39 points, to close at 1,996.78 points.
Shariah index DSES declined by 0.02 per cent, or 0.33 points, to finish at 1,312.57 points.
Bangladesh Submarine Cable Company led the turnover leaders with its shares worth Tk 48.90 crore changing hands on the day.
Khulna Power Company, Monno Ceramics, Fortune Shoes, United Power Generation Company, Legacy Footwear, Square Pharmaceutical, Alif Industries, National Polymer and Monno Jute Staffler were the other turnover leaders.
Karnaphuli Insurance gained the most on the day with a 9.60-per cent increase in its share prices while Savar Refectories was the worst loser, shedding 9.88 per cent.
Source: http://www.newagebd.net

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