Dhaka stocks slump on political worries

Dhaka stocks plunged on Monday amid decline in turnover as investors went for heavy sales due to rise in political activities surrounding the national elections.
DSEX, the key index of Dhaka Stock Exchange, plunged 1.13 per cent, or 61.99 points, to close at 5,384.41 points on Monday after gaining 11.20 points in the previous session.
DSEX began to fall from the very beginning of the trade on Monday and dipped further as the time progressed as investors rushed to sell shares on worries over the political situation surrounding the national elections, said market operators.
They said that before Monday investors had been cautious in previous few trading sessions as they were keeping eyes on political developments before the next general elections due to be held by January 28, 2019.
But, investors became nervy on Monday 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 demands for holding a free and fair elections.
The platform of BNP, Jatiya Oikya Prakriya and Juktafront, which was launched on Saturday, put forward 7-point demands including resignation of the present government and dissolution of parliament before the national elections, and formation of polls-time neutral government through discussion with all political parties.
Investors’ participation on trading floor has been on decline after the formation of the new alliance as some investors feared political instability surrounding the polls, stockbrokers said.
Besides, a section of investors went for profit taking share sales from their recent gains, they said.
Stock market analyst and United International University professor Mohammad Musa on Monday told New Age that a section of investors might have become cautious amid the new political development surrounding the formation of the new alliance.
He said that some of the investors were cautious about the possible implication if the government did not address the demands of the new alliance.
The turnover on DSE dropped further to Tk 493.93 crore on Monday compared with that of Tk 576.62 crore in the previous trading session.
Average share prices of all the large capitalised sectors declined on the day.
Share prices of energy, non-bank financial institution and bank sectors slumped by 1.73 per cent, 1.64 per cent and 1.19 per cent respectively that led DSEX’s nosedive on the day.
Out of 30 traded bank scrips, 24 declined, four advanced and two remained unchanged while out of 23 NBFIs, 18 declined, three advanced and two remained unchanged on the day.
Engineering, pharmaceuticals and textile sectors also declined on the day.
‘The prime bourse of the country closed in red zone through extensive price correction amid investors’ intension to either pocket profit or curb losses,’ said EBL Securities in its daily market commentary.
Of the 336 companies and mutual funds traded on Sunday, 144 declined, 138 advanced, and 53 remained unchanged.
DS30, the blue-chip index of DSE, slumped 1.19 per cent, or 23.00 points, to close at 1,899.91 points.
Shariah index DSES shed 1.13 per cent, or 14.33 points, to finish at 1,248.13 points.
Khulna Power Company led the turnover chart with its shares worth Tk 54.59 crore changing hands.
Summit Power, United Power Generation Company, Shasha Denims, Dragon Sweater, IFAD Autos, Silva Pharmaceuticals, Active Fine Chemicals and VFS Thread Dyeing, VFS Thread Dyeing and Bangladesh Export Import Company were the other turnover leaders.
Silva Pharmaceuticals gained the most on the day with a 10-per cent increase in its share prices, while Meghna Pet Industries was the worst loser, shedding 10 per cent.
Source: http://www.newagebd.net

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