ICB leads stocks’ dive for poor earnings

Dhaka stocks dropped on Wednesday as investors went for selling shares of some large capitalised companies like Investment Corporation of Bangladesh that declared a significant profit fall, market operators said.
They said some investors were also assessing the Bangladesh Bank’s monetary policy statement announced on the day.
DSEX, the key index of Dhaka Stock Exchange, lost 0.68 per cent, or 40.42 points, to close at 5,884.11 points on Wednesday after gaining 20.30 points in the previous session.
After seesaw movements in early trading, the market moved downward after the central bank unveiled the MPS for the second half (January- June) of this fiscal year, (2018-2019), market operators said.
BB announced the MPS, reducing the private sector credit growth target to 16.5 per cent for the second half of the fiscal year after missing its projection of 16.8 per cent for July-December of the fiscal year.
Market operators said some investors also went for selling shares for profits after the recent gain in share prices.
‘The capital bourse of the country observed price corrections following the declaration of MPS. The market opened high but morning buoyancy did not sustain as investors opted for realising gain from their portfolios,’ said EBL Securities in its daily market commentary.
Moreover, earning declarations from several stocks might have failed to meet the investors’ expectation that resulted in selling pressure, it said.
Average share prices of non-bank financial institution, bank, pharmaceuticals and telecommunication dropped by 3.14 per cent, 1.17 per cent, 1.16 per cent and 0.24 per cent respectively.
Share prices of ICB plunged by 5.2 per cent as the company declared a profit fall by 80.50 per cent to Tk 0.63 earnings per share in the July-December, 2018 period compared with that of Tk 3.23 in the same period of the previous year.
EPS of Jamuna Oil, Global Heavy Chemicals and Aamra Network dropped, so did their share prices.
On the other hand, share prices of food and energy advanced by 0.9 per cent and 0.1 per cent respectively.
The turnover on DSE advanced to Tk 1,024.61 crore on Wednesday compared with that of Tk 945.85 crore in the previous trading session.
Of the 336 companies and mutual funds traded on Wednesday, 213 declined, 102 advanced and 29 remained unchanged.
DSE blue-chip index DS30 dropped by 0.71 per cent, or 14.56 points, to close at 2,031.73 points.
Shariah index DSES dipped by 0.56 per cent, or 7.57 points, to finish at 1,324.04 points.
Premier Bank led the turnover leaders for the second day with its shares worth Tk 40 crore changing hands on Wednesday.
United Power Generation Company, Grameenphone, Eastland Insurance Company, Eastern Housing, United Finance, RSRM Steel, Legacy Footwear and Meghna Petroleum were the other turnover leaders.
Intech Limited gained the most on the day with a 9.95-per cent increase in its share prices, while Maksons Spinning Mills was the worst loser, shedding 8.33 per cent.
Source: http://www.newagebd.net

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