Stocks sink to 22-month low

Dhaka stocks sank to a 22-month low on the back of slow retreat of institutional investors upon anticipation of political uncertainty in the run-up to the national election, market insiders said.

DSEX, the benchmark index of Dhaka Stock Exchange, dropped 69.80 points, or 1.32 percent, to close the day at 5,212.23 points. The last time the index was lower than this was on January 8, 2017; it stood at 5,158.69 points then.

“No institutional investor is giving support to the market -- they are just watching from the sidelines,” said the head portfolio manager of a leading merchant bank requesting anonymity.

He went on to single out the Investment Corporation of Bangladesh. “They are also not giving support.”

Even the slightest fear among investors impacts the market badly, he added.


The extended bear run is rather perplexing seeing that there is: yet to be any political upheaval; a vote of confidence from the Chinese consortium of Shenzhen and Shanghai stock exchanges, which recently bought 25 percent stakes in the DSE; soundness in economic fundamentals.

“There is absolutely no need to panic regarding the upcoming election,” said Minhaz Mannan Emon, a director of the bourse.

In the past, there was turmoil ahead of the election. But this year, with less than two months to go for the election, the situation is very normal still.

Besides, the ICB will invest Tk 1,500 crore after getting funds from selling a bond worth Tk 2,000 crore. The process to issue the bond is underway, he said.

Stock brokers will also plough back the Tk 947 crore they got from selling their stakes in the DSE to the Chinese consortium, he added.

Turnover, another important indicator of the market, declined 12.56 percent to Tk 371.71 crore yesterday.

Khulna Power was the top traded stock with its transaction of 19.25 lakh shares worth Tk 24.26 crore, followed by Monno Ceramics, Shahjalal Islami Bank, BBS Cables and Active Fine.

Mozaffar Hossain Spinning Mills was the day's best performer with its 15.04 percent gain, while Indo-Bangla Pharmaceuticals was the biggest loser, shedding 11.81 percent.

Losers outnumbered gainers by 247 to 64, while 28 securities remained unchanged.

Chittagong Stock Exchange also witnessed a big fall: its key index plunged 128.82 points to end the day at 9,714.28 points.

The port city bourse traded 66.95 lakh shares and mutual fund units worth Tk 14.85 crore.
Source: https://www.thedailystar.net

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