Stocks fall for 2nd day as GP leads MNC slump
Dhaka stocks dropped for the second day on Monday as investors continued selling shares especially multinational companies including Grameenphone, and bank and energy scrips.
DSEX, the key index of Dhaka Stock Exchange, lost 0.51 per cent, or 29.82 points, to close at 5,733.91 points on Monday after losing 48.18 points in the previous session.
The market began to dip from the very beginning of the day and remained in the negative trajectory for the whole session as investors went on heavy share sales especially multinational, energy and financial scrips, market operators said.
The share prices of Grameenphone plunged by 2.09 per cent as the media reported on Monday that Bangladesh Telecommunication Regulatory Commission on Sunday declared GP as significant market power, considering its market share of above 40 per cent.
The media also reported that BTRC would impose conditions on GP for running its business as SMP.
Market operators said the news prompted investors to offload their holdings in the mobile operator.
The other multinational companies followed the falling trend of GP after a surge in their share prices in last couple of sessions.
Share prices of Doreen Power lost 5.54 per cent as the company disclosed that one of its sponsor-director would sell 70 lakh shares (40 lakh in the block market and 30 lakh shares in the public market) at the prevailing market price.
The disclosure spread panic among the shareholders of the company, market operators said.
IPDC Finance was the worst loser on Monday, shedding 8.68 per cent as the company declared lower dividend (7 per cent cash and 8 per cent stock) for the shareholders for 2018 than the previous year (20 per cent stock), despite a 33.76-per cent increase in its profits.
Investors continued to ditch shares of banks and NBFIs as they were uncertain whether banks and NBFIs would announce better corporate results or not and whether time for advance deposit ratio adjustment for banks would be extended or not. The current deadline for ADR adjustment is March 31.
The average share prices of bank and non-bank financial institution sectors dropped by 0.68 per cent and 0.54 per cent respectively on Monday and that of telecommunication and energy sectors decreased by 1.98 per cent and 1.12 per cent respectively.
The average share prices of general insurance, life insurance and textile sectors added 5.60 per cent, 0.98 per cent and 0.62 per cent respectively after their two days’ losses.
The turnover on DSE dropped to Tk 719.13 crore on Monday compared with that of Tk 812.77 crore in the previous trading session.
Of the 336 companies and mutual funds traded on Monday, 151 declined, 155 advanced and 39 remained unchanged.
DSE blue-chip index DS30 lost 1.06 per cent, or 21.65 points, to close at 2,003.02 points.
Shariah index DSES shed 0.65 per cent, or 8.65 points, to finish at 1,311.62 points.
United Power Generation Company led the turnover leaders with its shares worth Tk 42.62 crore changing hands on the day.
Monno Ceramics, Doreen Power, Fortune Shoes, Provati Insuracne, Bangladesh Submarine Cable Company, Legacy Footwear, Stylecraft Limited, JMI Syringe and Grameenphone were the other turnover leaders.
Premier Insurance gained the most on the day with a 9.94-per cent increase in its share prices.
Source: https://www.thedailystar.net
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