Stocks suffer sharp fall

Stock indices in Bangladesh suffered a sharp fall yesterday, extending the loss to the second day as most traders opted to sell.

The DSEX, the benchmark index of the Dhaka Stock Exchange, shed 66.73 points, 1.13 percent, to close the day at 5,834.

The DSES, the index that represents Shariah-compliant firms, dropped 17.85 points, or 1.38 percent, to 1,267. Similarly, the DS30, which comprises blue-chip stocks, gave up 26.12 points, or 1.27 percent, to 2,024.

A broker attributed the decline to a thin presence of buyers.

The indices declined because many large capital-based stocks fell due to the sales pressure from foreign investors, who have stepped up selling after failing to do so for nearly 18 months to January this year owing to the floor price.

Although the foreign sale pressure was not huge, the buying interest from institutional investors was insignificant either. As a result, the indices dropped, he added.

LafargeHolcim Bangladesh, a multinational cement manufacturer, alone dragged the benchmark index down by 11 points. Drug maker Renata PLC was responsible for a loss of seven points, according to LankaBangla Securities.

LafargeHolcim Bangladesh was the worst-performing stock of the day, losing 7.96 percent. Usmania Glass Sheet Factory, Orion Infusion, Tung Hai Knitting & Dyeing, and Anlimayarn Dyeing were also on the losers' list.

City General Insurance topped the gainers' list with a rise of 5 percent. Rupali Life Insurance was up 4.93 percent while Aramit and Meghna Pet Industries gained more than 4 percent.

Express Insurance, Bangladesh Industrial Financial Company, and Takaful Islami Insurance were also on the gainers' chart.

Turnover slumped 23.23 percent to Tk 445 crore. Of the securities that traded on the premier bourse of Bangladesh, 41 gained, 318 declined, and 34 did not see any price movement.

Md Mustafizur Rahman, an investor, said he invested in some well-performing stocks a few months earlier. However, all of the stocks are on a falling trend. So, his capital has eroded by around 25 percent.

However, junk stocks or low-performing stocks are rising, leaving him wondering whether his investment decision was right.

"Should I invest in junk stocks?" Rahman asked.

Yesterday, the top gainers included two junk stocks and two low-performing "B" category companies.

Almost all the sectors ended in negative territory, with cement, non-bank financial institutions and paper and printing shares falling the most, according to the daily market update by UCB Stock Brokerage.

The pharmaceuticals sector dominated the turnover chart, accounting for 20.92 percent of the total turnover.

The Chattogram Stock Exchange also witnessed a similar trend as the Caspi, the main index of the bourse in the port city, plunged 168 points, or 0.99 percent, to close at 16,704.