Dhaka stocks see negative week amid polls-centric jitters
Dhaka stocks dropped in last week amid a fall in the share prices of two-thirds of the traded scrips as investors went for selling shares in cautious trading ahead of the national polls.
DSEX, the key index of Dhaka Stock Exchange, lost 0.98 per cent, or 53.49 points, to close at 5,435.01 points on Thursday, the last trading session of the week, after gaining 92 points in the previous two weeks.
Plunges in the share prices in two trading sessions of the week weighed on the market heavily offsetting the gains it made in the rest three sessions, market operators said.
Investors were assessing risk factors surrounding the political developments before the next general elections due by January 28, 2019, they said.
Market operators said the DSEX plunged by 62 points on the second day (October 15) of the week as the investors became nervy amid media reports that the newly announced alliance of opposition parties, Jatiya Oikya Front, would go for joint programme in the coming days to press for its 7-point demand for holding free and fair elections.
The platform of BNP, Jatiya Oikya Prakriya and Juktafront was launched on October 13.
Election Commission secretary Helal Uddin Ahmed on October 18 said that the schedule for the next parliamentary elections would be announced in the first week of November.
The daily average turnover on the bourse plunged by 34.50 per cent to Tk 510.17 crore in last week from Tk 778.87 crore in the previous week.
Out of the 346 traded issues, 223 declined, 97 advanced and 26 remained unchanged.
A section of investors also went for profit-taking share sales in last week after gains in the previous two weeks, market operators said.
The share prices of all the large capitalised sectors except bank and food declined over the week.
The share prices of energy, cement, pharmaceuticals, textile and non-bank financial institutions dropped by 2.8 per cent, 2.5 per cent, 1.6 per cent and 1.1 per cent respectively.
Among the prominent scrips, the share prices of Khulna Power Company, Summit Power, United Power Generation Company, Square Pharmaceuticals, Investment Corporation of Bangladesh and Grameenphone declined most in the week.
On the other hand, the share prices of food and bank advanced by 2.0 per cent and 1.5 per cent respectively that saved the market from further fall.
‘The capital market settled in red zone last week as investors mostly followed cautious stance ahead of quarterly earnings disclosures,’ said EBL Securities in its weekly market commentary.
DS30, the blue-chip index of DSE, also slumped by 1.54 per cent, or 29.69 points, over the week to close at 1,896.07 points.
Shariah index DSES shed 1.75 per cent, or 22.21 points, to close at 1,243.54 points.
Khulna Power Company led the turnover chart with its shares worth Tk 210.76 crore changing hands.
Summit Power, United Power Generation & Distribution Company, Dragon Sweater, VFS Thread Dyeing, Shasha Denims, Silva Pharmaceuticals, Active Fine Chemicals, Nurani Dyeing and BBS Cables were the other turnover leaders.
Republic Insurance Company gained the most in the week with a 17.45-per cent increase in its share prices, while Aman Cotton Fibrous was the worst loser, shedding 12.60 per cent.
Source: http://www.newagebd.net