Stocks drop for 3rd day as electioneering begins

Dhaka stocks dipped for the third session on Monday as surging defaulted loans in the country’s banking sector dampened the mood of investors who also remained watchful ahead of the December 30 national election.
DSEX, the key index of Dhaka Stock Exchange, shed 0.19 per cent, or 10.53 points, to close at 5,295.69 points on Monday. The DSEX lost 65.4 points in last three sessions.
The core index opened positive but began to dip as the session progressed and finished the session in the negative territory as investors continued selling shares amid rising political activities ahead of the national election, market operators said.
Market operators said the tensions among investors grew as electioneering began from Monday across the country.
They said a surge in the banks’ non-performing loans to total at Tk 99,370 crore and a Centre for Policy Dialogue research that exposed plundering of Tk 22,502 crore from the country’s banking sector in last 10 years made investors shaky.
‘Investors’ sentiment regarding the market oscillated between optimism and watchfulness in the current market scenario ahead of the national election and they were also following the news of major banking scams and rising non-performing loans,’ said EBL Securities in its daily market commentary.
Average share prices of textile, energy, telecommunication and non-bank financial institution dropped by 2.0 per cent, 1.4 per cent, 0.7 per cent and 0.3 per cent respectively.
Share prices of Information Services Network dropped by 10 per cent, the highest limit for the day, as the company informed that its shareholders at the annual general meeting on Sunday unanimously approved no dividend for the financial year ended June 30, 2018.
The board of directors of the company earlier declared 1 per cent cash and 4 per cent stock dividend for the year. But the meeting was informed that as per the audited financial statements, the company did not have positive consolidated retained earnings and therefore declaration/disbursement of any dividend to the shareholders would be a violation of the relevant order of the market regulator.
Average share prices of food, bank and pharmaceuticals gained 1.0 per cent, 0.2 per cent and 0.1 per cent respectively.
The pharmaceutical sector led the turnover on Monday by holding 24.3 per cent of the day’s total turnover.
The turnover on DSE advanced to Tk 567.67 crore on Monday compared with that of Tk 516.79 crore in the previous trading session.
Of the 336 companies and mutual funds traded on Monday, 198 declined, 110 advanced, and 36 remained unchanged.
DSE blue-chip index DS30 also dropped by 0.32 per cent, or 5.97 points, to close at 1,849.69 points.
Shariah index DSES lost 0.18 cent, or 2.27 points, to finish at 1,219.77 points.
Wata Chemicals led the turnover leaders with its shares worth Tk 20.94 crore changing hands.
Square Pharmaceuticals, Pharma Aid, Khulna Power Company, National Tea Company, United Power Generation Company, JMI Syringes & Medical Devices Sonali Aansh, Dragon Sweater and Indo-Bangla Pharmaceuticals were the other turnover leaders.
CAPM IBBL Islamic Mutual Fund gained the most on the day with a 9.34-per cent increase in its share prices, while Information Services Network was the worst loser, shedding 10 per cent.
Source: http://www.newagebd.net

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