Stocks fall for third week on political tension, poor earnings

Dhaka stocks dropped for the third week amid political worries surrounding next national elections and poor earnings declarations by many of the companies.
DSEX, the key index of Dhaka Stock Exchange, shed 0.45 per cent, or 23.56 points, to close at 5,258.48 points on Thursday, the last trading session of the week.
The DSEX lost 176 points in the last three consecutive weeks.
The DSEX fall in most of the sessions over the week amid rising political activities and poor earnings declarations by most of the companies, market operators said.
The week began with a plunge after the new political alliance Jatiya Oikya Front held a rally in the Chattogram city on October 27, raising seven-point demands for free and fair national elections, they said.
They said that the investors remained cautious before the political dialogue between prime minister and Awami League president Sheikh Hasina and leaders of the new opposition alliance over the upcoming national elections that held on Thursday evening.
The investors were also monitoring the political situation as a High Court bench doubled the jail term of Bangladesh Nationalist Party chairperson Khaleda Zia to 10 years on corruption charges, which her party rejected as a politically motivated case. 
Some investors also kept eyes on announcement of the elections schedule that is expected to be declared in the first week of November.
Besides, most of the companies declared poor earnings and dividends that dampened the mood of the investors, they said.
The share prices of Khulna Power Company Limited declined by 10.84 per cent on the day as the company on Wednesday declared lower dividend (30 per cent cash and 10 per cent stock dividend) for the year ended on June 30, 2018 despite making 21.90 per cent profit increase. 
Profits of most of the banks declined in January- September period that instigated investors to sale shares of the sector.
Average share prices of cement, energy, bank and telecommunication dropped by 4.7 per cent, 2.3 per cent, 1.3 per cent and 0.5 per cent respectively.
On the other hand, some investors went for investments as they anticipating the start of Tk 900 crore investments by DSE members and Tk 2,000 crore from state run Investment Corporation of Bangladesh
Average share prices of textile, pharmaceuticals and non-bank financial institutions advanced by 5.4 per cent, 1.5 per cent and 0.6 per cent respectively.
The daily average turnover on the bourse, however, increased by 17.79 per cent to Tk 482.33 crore in the last week from Tk 409.49 crore in the previous week.
Average share prices of all the large capitalised sectors except telecommunication declined over the week.
Share prices of textile, energy, bank and non-bank financial institutions plunged by 3.59 per cent, 3.18 per cent, 1.39 per cent and 0.71 per cent respectively.
Out of the 346 traded issues, 157 declined, 163 advanced and 26 remained unchanged.
DS30, the blue-chip index of DSE, also plunged 0.57 per cent, or 10.70 points, over the week to close at 1,865.36 points.
Shariah index DSES shed 0.63 per cent, or 7.74 points, to close at 1,216.05 points.
Khulna Power Company led the turnover chart with its shares worth Tk 154.09 crore changing hands.
Shahjalal Islami Bank, Monno Ceramic Industries, Nurani Dyeing & Sweater, Intech Limted, Summit Power, Delta Life Insurance Company, Dragon Sweater, Bangladesh Export Import Company, Advent Pharma, BBS Cables, VFS Thread Dyeing and United Power Generation & Distribution Company were the other turnover leaders.
Saiham Cotton Mills gained the most in the week with a 42.03-per cent increase in its share prices, while GBB Power was the worst loser, shedding 30.08 per cent.
Source: http://www.newagebd.net

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