Stocks drop as investors prefer inactivity
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Dhaka stock dropped on Sunday in cautious trading as prolonged bearish trend at the market made investors reluctant to inject funds in the market.
DSEX, the prime index of Dhaka Stock Exchange, added 0.02 per cent, or 21.13 points, to close at 4,916.68 points on Sunday after gaining 1.44 points in the previous session.
After a slight rise at the beginning of Sunday’s session, the market started falling sharply and maintained the negative vibe until the end of the session as investors continued to maintain their cautious approach, market operators said.
They said that investors were shy to invest funds as the relentless fall in the share prices lowered the level of their confidence in the market.
EBL Securities in its daily market commentary said, ‘Investors’ participation remained thin due to market volatility, which kept the turnover low.’
Turnover on the bourse further dropped to Tk 307.22 crore on Sunday from Tk 328.63 crore in the previous session.
The market remained bearish for last nine months despite some of the government steps including increase in fund flow to the capital market and announcement of resolving Grameenphone audit dispute.
The DSEX dropped more than 1,000 points in the nine months due to volatile financial sector, widespread anomalies at the market, approval of weak IPOs, new tax on listed companies and GP’s tussle with the telecom regulator over the audit claim.
Sales of huge amount of placement shares and directors’ shares fuelled the volatility at the market.
Lack of interest of the local investors prompted the foreign investors to withdraw their investments from the country’s capital market.
The media reported that the foreign investors at the DSE withdrew record Tk 680 crore in last seven months (March-September) from the country’s premier bourse, breaking the previous record of withdrawal in 2009 when the foreigners had pulled Tk 440 crore out of the market in six consecutive months (January-June).
Share prices of all large capitalised sectors declined on Sunday.
The average share prices of the energy sector dropped by 1.8 per cent, non-bank financial institution 0.6 per cent, bank 0.5 per cent and telecommunication sector fell by 0.1 per cent.
Among the large capitalised scrips, share prices of United Power Generation Company, Meghna Petrolium, Renata and DESCO fell on the day.
Out of the 352 scrips traded on the day, 213 declined, 90 advanced and 51 remained unchanged.
Blue-chip index DS30 decreased by 0.43 per cent, or 7.56 points, to close at 1,747.67 points.
DSE Shariah index DSES shed 0.19 per cent, or 2.23 points, to close at 1,134.10 points.
National Tubes led the turnover chart with its shares worth Tk 25.71 crore changing hands on the day.
Beacon Pharmaceuticals, Standard Ceramics, SEML FBSL Growth Fund, Wata Chemicals, Bangladesh Submarine Cable Company, Monno Jute Stafflers, Summit Power, Atlas Bangladesh and Sonar Bangla Insurance were the other turnover leaders.
National Tubes gained the most on the day with a 9.95-per cent increase in its share prices while SEML FBSL Growth Fund was the worst loser, shedding 9.34 per cent.
Source: http://www.newagebd.net
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