Dhaka stocks slump as investors go for short-term gain
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Dhaka stocks on Tuesday slumped again as shaky investors went for short-term profit booking after a surge in the previous two sessions.
DSEX, the prime index of Dhaka Stock Exchange, plunged by 0.83 per cent, or 41.51 points, to close at 4,958.72 points on Tuesday after gaining 144 points in the previous two sessions.
After a slight gain at the beginning of the day, the market started falling sharply to end the session deep into the negative zone as a section of investors went for profit taking after a significant surge in the previous two sessions following the Bangladesh Bank’s move to prop up the market, market operators said.
The BB on Sunday allowed the schedule banks to borrow funds directly from the central bank at low interest rate for investing in the capital market.
Market operators said that investors were sceptical about the long-term stability at the market as they witnessed persistent volatility in last eight months.
Hence, they preferred to book quick profits from their investments whenever they got chance, they said.
The investors’ confidence was shattered amid a continued fall in share prices of almost all the scrips without any sound reasons. The downward trend started since the beginning of 2018 except a massive and temporary hike in January this year.
The government has taken a number of initiatives to recoup the investors’ confidence in the market, but to no avail, market operators said.
They said finance minister AHM Mustafa Kamal recently held a meeting with the market intermediaries and regulators to find solutions to the market woes but the move failed to draw attention of investors.
Stock market expert and United International University professor Mohammed Musa told New Age that the government had been trying to recover the investors’ confidence by taking some steps but the moves put only a short-term impact on the market.
The government should take such initiatives that would improve the market on long-term basis, he said.
The market regulator should not intervene in each and every matter at the market, Musa said.
EBL Securities said, ‘Investors’ selling pressure to book profit from large cap stocks namely GP, UPGDCL and BATBC drag down the index to close at the red zone. However, many investors still remained worried about the recent volatility at the market.’
Average share prices of energy sector fell by 1.7 per cent, telecommunication 1.2 per cent, non-bank financial institution 1.19 per cent and bank sector declined by 0.5 per cent.
Turnover on the bourse declined to Tk 405.63 crore on Tuesday from Tk 517.34 crore in the previous session.
Out of the 352 scrips traded on the day, 214 declined, 103 advanced and 34 remained unchanged.
DSE Shariah index DSES decreased by 1.11 per cent, or 12.85 points, to close at 1,145.29 points.
Blue-chip index DS30 shed 0.88 per cent, or 15.86 points, to close at 1,774.11 points.
Fortune Shoes led the turnover chart with its shares worth Tk 19.72 crore changing hands on the day.
Grameenphone, Beacon Pharmaceuticals, Sonar Bangla Insurance, National Tubes, Square Pharmaceuticals, Monno Jute Stafflers, Summit Power, National Polymer and VFS Thread Dyeing were the other turnover leaders.
SEML Lecture Equity Management gained the most on the day with a 10-per cent increase in its share prices while Fortune Shoes was the worst loser, shedding 9.11 per cent.
Source: http://www.newagebd.net
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