Dhaka stocks slump for 2nd day

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Dhaka stocks slumped for the second day on Tuesday as profit-taking share sales by a section of investors triggered worries among other investors who were yet to recover from the trauma of market slump in recent months.

DSEX, the core index of Dhaka Stock Exchange, lost 0.97 per cent, or 52.08 points, to close at 5,289.99 points on Tuesday after losing 52.82 points in the previous trading session. Before the last two days’ fall, the index had gained 219 points in three trading sessions.

After a slight gain, the market began to fall on Tuesday and descended more steeply as the session progressed as some investors went on selling shares to book profits in last two days after a three-day surge, market operators said. They said that the surge had come on regulatory moves after a 13-week bear run and street protests by investors.

Market operators said that some investors still remained on the edge and the profit-taking sales by a section of investors triggered worries among other investors. Besides, media reports on lingering liquidity crisis at the financial sector also had an impact on the day’s trading, they said.

Market experts said that the financial market was still struggling with a number of issues including liquidity crisis and bad loans. The liquidity crisis raised interest rate and increased business cost.

Share market analyst and United International University professor Mohammad Musa told New Age that the capital market still was in falling trend. He said that market remained slow during the month of Ramadan, the fasting month for Muslims, that began on Tuesday.

It may again revive if the policymakers announce some incentives in the upcoming budget, he said.
Typically trading slows a bit on the bourse during Ramadan, said a stockbroker.

EBL Securities in its daily market update said, ‘The market started negative and continued till the end of the session as investors sold shares to book profits and adopted cautious stance in the month of Ramadan.’

The average share prices of almost all the sectors dropped on the day. The share prices of textile, non-bank financial institution, telecommunication, bank and energy dropped by 1.7 per cent, 1.5 per cent, 1.4 per cent, 0.6 per cent and 0.6 per cent respectively.
Among the large capitalised scrips, the share prices of Grameenphone, United Power Generation Company and British American Tobacco declined most on the day.

Before the two-day fall, the market rebounded strongly as the government and the market regulator, Bangladesh Securities and Exchange Commission, in last few days announced a number of measures including approval of Tk 856 crore in loans for the small-scale investors affected by the recent plunges and suspension of taking initial public offering applications until changes to the related rules are made.

Prime minister Sheikh Hasina advised investors not to get panicked while finance minister AHM Mustafa Kamal assured that all the problems prevailing at the stock market would be solved one by one.

Out of the 345 issues traded on Tuesday, 262 declined, 57 advanced and 28 remained unchanged. Turnover on the bourse declined to Tk 433.50 crore from Tk 467.34 crore in the previous session. DSE blue-chip index DS30 dropped by 1.03 per cent, or 19.39 points, to close at 1,861.82 points. Shariah index DSES lost 0.97 per cent, or 11.16 points, to finish at 1,222.47 points. Fortune Shoes led the chart of turnover leaders with its shares worth Tk 32.36 crore changing hands on the day.

Powergrid, Bangladesh Shipping Corporation, Esquire Knit Composite, Monno Ceramic Industries, Indo-Bangla Pharmaceuticals, Fine Foods, National Tubes, National Polymer and Grameenphone were the other turnover leaders.

Monno Ceramics gained the most on the day with a 5.98-per cent increase in its share prices while Eastern Cables was the worst loser, shedding 15.66 per cent.
Source: http://www.newagebd.net

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