Stocks fall for 2nd day
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Dhaka stocks decreased on Wednesday in cautious trading after a plunge in the previous day as investors were doubtful about whether banks would accept the Bangladesh Bank’s offer of loans for investing in the capital market.
DSEX, the prime index of Dhaka Stock Exchange, dropped by 0.83 per cent, or 6.98 points, to close at 4,958.72 points on Wednesday after losing 41.51 points in the previous session.
The market started falling sharply from the beginning of the day’s trading but the trend eased in late hours and the market finished with marginal losses amid cautious trading, market operators said.
They said that the market had gained 144 points before the two-day losses due to the Bangladesh Bank’s move to give the capital market liquidity support.
The central bank on Sunday decided to lend funds to the schedule banks with lower interest rate for investing in the capital market.
Many investors are now sceptical about the banks’ interest to borrow funds from the central bank only to invest in the ailing capital market, market operators said.
The market has been suffering a bearish trend for last eight months that has eroded confidence and risk-taking appetite of investors.
The government has taken a number of initiatives to recoup the investors’ confidence in the market, but to no avail, market operators said.
They said finance minister AHM Mustafa Kamal recently held a meeting with the market intermediaries and regulators to find solutions to the market woes but the move failed to draw attention of investors.
EBL Securities in its daily market commentary said, ‘The market witnessed a muted session as risk-averse investors followed “wait and see” approach, which kept participation low due to lack of consistency in recent market movements.’
Average share prices of telecommunication dropped by 0.8 per cent, bank 0.6 per cent, textile 0.5 per cent, and non-bank financial institution decreased by 0.49 per cent.
Among the large capitalised scrips, Grameenphone, BRAC Bank and British American Tobacco Company plunged on the day that weighed on the market.
On the other hand, share prices of engineering, energy and pharmaceuticals gained on the day.
Turnover on the bourse plunged to Tk 318.44 crore on Wednesday from Tk 405.63 crore in the previous session.
Out of the 352 scrips traded on the day, 141 declined, 147 advanced and 65 remained unchanged.
Blue-chip index DS30 shed 0.41 per cent, or 7.39 points, to close at 1,766.71 points.
DSE Shariah index DSES, however, added 0.03 per cent, or 0.40 points, to close at 1,145.70 points.
Monno Jute Stafflers led the turnover chart with its shares worth Tk 11.80 crore changing hands on the day.
Sonar Bangla Insurance, National Tubes, Grameenphone, VFS Thread Dyeing, Eastern Insurance, Beacon Pharmaceuticals, Rupali Life Insurance, Fortune Shoes and Monno Ceramic were the other turnover leaders.
SEML Lecture Equity Management Fund gained the most on the day with a 7.57-per cent increase in its share prices while Monno Jute Stafflers was the worst loser, shedding 4.72 per cent.
Source: http://www.newagebd.net
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