Dhaka stocks fall again amid lacklustre trading

Dhaka stocks returned to the negative zone on Wednesday amid lacklustre trading as investors went for selling shares in the bearish market amid worries over the financial sector.
DSEX, the key index of Dhaka Stock Exchange, declined by 0.54 per cent, or 30.73 points, to close at 5,600.55 points on Wednesday after gaining 26.39 points in the previous session.
The market started with positive momentum but didn’t sustain it for long and moved downward soon to finish the session dip into the negative zone as investors went for selling shares to avoid further losses, market operator said.
They said that investors fretted over the prolonged bearish movement at the market with poor investors’ participation.
The market has been going through a rough period amid liquidity crisis in the country’s banking sector which is beset with a huge amount of non-performing loans, they said.
They said the government’s claim of record 8.13 per cent economic growth for the current fiscal year (2018-19) apparently failed to put any positive impact on the market.
Former Bangladesh Securities and Exchange Commission chairman Faruque Ahmed Siddique said that the country’s capital market was yet to have any strong connection with its economic growth which was still mostly dependent on the public sector.
The private sector investment growth could be a major driver of the capital market, he said.
The average share prices of non-bank financial institution, bank, textile and energy sectors dropped by 1.41 per cent, 1.4 per cent, 1.0 per cent and 0.2 per cent respectively.
The share prices of the textile sector have been falling as the government proposed fresh gas price hike that could increase the production cost in the sector, market operators said.
EBL Securities in its daily market commentary said shaky investors were not confident enough to inject fresh fund in the market while institutional investors mostly followed ‘wait-and-see’ approach ahead of dividend and earnings declarations of financial sector.
The turnover on the bourse plunged to Tk 414.69 crore from Tk 437.80 crore in the previous trading session.
Wednesday’s turnover was the lowest after December 26 last year when it was Tk 388.24 crore.
Market operators said the share prices of Grameenphone soared by 0.81 per cent on Wednesday as Bangladesh Telecommunication Regulatory Commission on Tuesday withdrew the four conditions it imposed on leading mobile phone operator as significant market power.
The average share prices of telecommunication, pharmaceutical and cement sectors advanced on the day.
Out of the 345 issues traded on the day, 193 declined, 101 advanced and 51 remained unchanged.
DSE blue-chip index DS30 dropped by 0.45 per cent, or 9.10 points, to close at 2,005.58 points.
Shariah index DSES shed 0.24 per cent, or 3.21 points, to finish at 1,289.71 points.
BATBC led the turnover leaders with its shares worth Tk 19.93 crore changing hands on the day. BRAC Bank, Grameenphone, United Power Generation Company, Square Pharmaceuticals, Dutch-Bangla Bank, Marico Bangladesh, Singer Bangladesh, Monno Ceramics, and Reckitt Benckiser were the other turnover leaders.
Premier Cement Mills gained the most on the day with a 7.37-per cent increase in its share prices while Sonar Bangla Insurance was the worst loser, shedding 9.60 per cent.
Source: http://www.newagebd.net

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