Stocks fall amid selling spree ahead of Eid
Image: Bizbangladesh.net
Stocks ended lower yesterday, dragged down by selling pressure, especially from retail investors, ahead of Eid-ul-Azha as well as lower earnings declared by some high-performing companies for the second quarter of 2019.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), declined 35.72 points, or 0.69 percent, to close the day at 5,125.02.
Analysts say many retail investors had started pulling money out of the market by selling stocks, in order to meet the Eid expenses.
Eid-ul-Azha is one of the most important festivals in the Muslim calendar and is less than two weeks away.
A top official of a leading stock brokerage house says many retail investors dip into their stock market investments to pay for the expenses during the religious festival.
“It is a normal trend of the market ahead of all Eid festivals,” he said.
The most sell-offs were executed in the mutual fund sector, which rose the highest in the last few days, he added.
On the other hand, a number of companies reported poor quarterly earnings during the trading session.
Earnings per share (EPS) of British American Tobacco Bangladesh Company for the second quarter of 2019 plunged 43 percent year-on-year to Tk 9.73, leading the fall in the index.
The EPS went down because of the lower sales, particularly in the low-price segment of tobacco products.
BATBC was the top negative contributor to the index, pulling down 19.5 points alone.
The EPS of IDLC Finance, one of the leading non-bank financial institutions, and Eastern Bank, a major private commercial lender, also fell in the April-June quarter.
Turnover, one of the important indicators of the market, dropped 1.85 percent to Tk 429.69 crore. Of the traded issues, 268 declined, 64 advanced and 20 finished unchanged on the premier bourse.
United Power Generation dominated the turnover chart followed by Fortune Shoes, Monno Ceramics, Bangladesh Shipping Corporation, and Beacon Pharmaceuticals.
Bangladesh Wielding was the day’s best performer with 9.43 percent gain, while Asian Tiger Sandhani Life Growth Fund was the worst loser, shedding 13.68 percent.
The benchmark index of the port city bourse also fell on the day, giving up 72.23 points, or 0.75 percent, to finish at 9,526.07.
The Chittagong Stock Exchange traded shares and mutual fund units worth Tk 20.35 crore. Of the traded issues, 72 advanced, 188 declined and 23 finished unchanged.
Source: https://www.thedailystar.net
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