Stocks plunge for 3rd day
Image: Bizbangladesh.net
Dhaka stocks dropped for the third consecutive trading day on Sunday as investors continued selling shares amid the ongoing volatility in the country’s financial sector and a long tussle between Grameenphone and the telecom regulator over non-payment of audit claim.
DSEX, the prime index of the Dhaka Stock Exchange, lost 0.49 per cent, or 25.09 points, to close at 5,070.68 points on Sunday.
The DSEX lost 108 points in last three sessions, and it declined 166 points in last five sessions with just one positive day.
After a brief gain at the beginning on Sunday, the market fell sharply and continued the negative momentum until the end of the session as investors continued offloading their holdings amid concern over the country’s banking sector, market operators said.
They said the government failed to rein in rising non-performing loans in banks that made the financial sector vulnerable.
According to Bangladesh Bank data, the amount of classified loans in the January-June period this year surged by 19.71 per cent to reach Tk 1,12,425.17 crore at the end of June this year from Tk 93,911.4 crore at the end of December, 2018.
Despite criticisms from different quarters, the government provided easy loan rescheduling facility to loan defaulters.
Besides, the government collected huge amount of funds from the struggling banking channel that might affect the financial system heavily, market operators said.
In the period from July 1 to August 20 of the current fiscal year (2019-20), the government’s borrowing from the banking system reached Tk 26,248.52 crore against Tk 26,886 crore it borrowed in the entire last fiscal year.
On top of that, Bangladesh Bank recently directed the banks to maintain cash reserve ratio and statutory liquidity ratio for their exposure through offshore banking operations.
Market operators said the tussle between Grameenphone and Bangladesh Telecommunication Regulatory Commission continued hammering share prices of the top capitalised company at the market.
The media reported that the BTRC had started a process of scrapping the licence of Grameenphone over non-payment of the audit claim.
Share prices of GP declined by 0.7 per cent to end at Tk 309.60 per share on the day.
The average share prices of textile, telecommunication, energy and bank dropped by 1.1 per cent, 0.6 per cent, 0.5 per cent and 0.51 per cent respectively.
EBL Securities in its daily market commentary said, ‘From the very early part of Sunday’s session, the market did not sustain its upward vibe as many investors rebalanced their portfolios to realise gains and adopted a wait-and-see approach ahead of upcoming dividend declaration from listed scrips.’
Out of the 343 scrips traded, 210 declined, 93 advanced and 48 remained unchanged.
Turnover on the bourse plunged further to Tk 332.40 crore on Sunday from Tk 402.91 crore in the previous session.
DS30, the blue-chip index of the DSE, shed 0.47 per cent, or 8.62 points, to close at 1,791.43 points.
DSE Shariah index DSES lost 0.42 per cent, or 5.07 points, to close at 1,178.36 points.
Monno Ceramics led the turnover chart with its shares worth Tk 13.39 crore changing hands.
Wata Chemicals, Monno Jute Stafflers, JMI Syringe, National Polymer, Doreen Power, Linde Bangladesh, Beacon Pharmaceuticals, United Power Generation Company and National Tubes were the other turnover leaders.
Kay and Que gained the most on the day with a 9.99-per cent increase in its share prices while Padma Islami Life Insurance was the worst loser, shedding 11.82 per cent.
Source: https://www.newagebd.net
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