Dhaka stocks fall for 2nd day on banking sector woes

Dhaka stocks declined for the second day on Sunday as investors, discouraged by the banking sector woes, continued offloading shares particularly financial scrips.
DSEX, the key index of Dhaka Stock Exchange, lost 0.49 per cent, or 26.57 points, to close at 5,306.22 points on Sunday after losing 28.30 points in the previous session.
In line with the previous session, the key index began to fall from the beginning of the day and descended more sharply as the session progressed as investors escalated share sales, especially the financial stocks, due to a surge in the defaulted loans in banks, market operators said.
The media reported that the defaulted loans in the banking sector reached Tk 99,370 crore after a surge of Tk 10,030 crore in July-September this year from the previous quarter ending in June.
The banks failed to put a lid on the surge of non-performing loans while they blamed the bad loans for their continuous profit fall.
In addition, Centre for Policy Dialogue, a local think tank, on Saturday exposed that a total of Tk 22,502 crore had been looted from the country’s banking sector through major scams, irregularities and heists in last 10 years.
Average share prices of bank and non-bank financial institution plunged by 1.18 per cent and 0.97 per cent respectively on Sunday.
Out of the 30 traded bank scrips, 23 declined, three advanced and four remained unchanged while out of the 23 traded NBFIs, 16 dropped, five advanced and four remained unchanged.
A section of investors also remained cautious amid rising political activities surrounding the national election scheduled for December 30, stockbrokers said.
Average share prices of textile, telecommunication and engineering also dropped by 1.93 per cent, 0.28 per cent and 0.27 per cent respectively.
Average share prices of miscellaneous, energy and pharmaceuticals advanced by 2.32 per cent, 0.61 per cent and 0.44 per cent respectively.
The turnover on DSE inched up to Tk 516.79 crore on Sunday compared with that of Tk 514.04 crore in the previous trading session.
Of the 336 companies and mutual funds traded on Sunday, 195 declined, 112 advanced, and 34 remained unchanged.
DSE blue-chip index DS30 also shed 0.36 per cent, or 6.80 points, to close at 1,855.67 points.
Shariah index DSES dropped by 0.17 cent, or 2.14 points, to finish at 1,222.05 points.
United Power Generation Company led the turnover leaders with its shares worth Tk 26.87 crore changing hands.
Advent Pharmaceuticals, Paramount Textile, Wata Chemicals, Pharma Aid, Dragon Sweater, Kattali Textile, National Tea Company, Meghna Life Insurance, JMI Syringes & Medical Devices and Saiham Cotton were the other turnover leaders.
Fareast Islami Life Insurance gained the most on the day with an 8.92-per cent increase in its share prices, while RN Spinning Mills was the worst loser, shedding 8.16 per cent.
Source: http://www.newagebd.net

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