Dhaka stocks return to negative zone
Image: Bizbangladesh.net
Dhaka stocks on Wednesday returned to the losing streak after a slight gain in the previous session as investors went for selling shares amid concerns over the country’s financial sector and Grameenphone’s tussle with the telecom regulator over audit claim.
DSEX, the prime index of the Dhaka Stock Exchange, dropped by 0.74 per cent, or 38.70 points, to close at 5,139.99 points on Wednesday after gaining 12.93 points in the previous session. Before Tuesday’s gain, DSEX had lost 71.08 points in two sessions.
After a brief gain at the beginning, the market started falling sharply to finish the session into the negative zone as investors went for selling shares after a slight gain in the previous day, market operators said.
They said investors became cautious after the media reported that the bad loans in the banks surged further.
According to a Bangladesh Bank data, the amount of classified loans in the January-June period this year surged by 19.71 per cent to reach Tk 1,12,425.17 crore at the end of June this year from Tk 93,911.4 crore at the end of December, 2018.
The concern about the liquidity situation in the financial market resurfaced after Bangladesh Bank recently directed the banks to maintain cash reserve ratio and statutory liquidity ratio for their exposure through offshore banking operations.
Market operators said the rise in bad loans deepened the investors’ concern over the country’s banking sector.
The share prices of Grameenphone plunged by 1 per cent on Wednesday due to a prolonged tussle between Grameenphone and Bangladesh Telecommunication Regulatory Commission over an audit claim.
EBL Securities in its daily market commentary said ‘Following the news of BTRC deciding to issue show-cause notice to GP to revoke its licence, GP has lost 1.03 per cent of the value.’
‘Investors’ confidence in the banking sector was shaky due to the rise in NPLs despite changes in the loan rescheduling rules,’ it said.
The average share prices of textile sector dropped by 1.3 per cent, telecommunication 1.1 per cent, bank 1.0 per cent and non-bank financial institution 0.9 per cent.
A surge in the share prices of some of the multinational companies including British American Tobacco, Reckitt Benckiser and Linde Bangladesh saved the market from further fall.
The average share prices of food advanced by 1.4 per cent, energy 0.1 per cent and pharmaceutical 0.03 per cent.
Out of the 343 scrips traded, 262 declined, 59 advanced and 29 remained unchanged.
Turnover on the bourse decreased to Tk 456.71 crore on Wednesday from Tk 467.77 crore in the previous session.
DS30, the blue-chip index of the DSE, lost 0.62 per cent, or 11.43 points, to close at 1,817.71 points.
DSE Shariah index DSES shed 0.48 per cent, or 5.79 points, to close at 1,192.54 points.
United Power Generation Company led the turnover chart with its shares worth Tk 29.35 crore changing hands.
National Tubes, Monno Ceramics, Wata Chemicals, Monno Jute Stafflers, JMI Syringe, Global Insurance, Silco Pharmaceuticals, British American Tobacco and Beacon Pharmaceuticals were the other turnover leaders.
Prime Finance First Mutual Fund gained the most on the day with a 9.62-per cent increase in its share prices while Shurwid Industries was the worst loser, shedding 9.73 per cent.
Source: http://www.newagebd.net
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