Stocks continue to drop

Stocks continued to drop for a second consecutive day yesterday while turnover rose as many investors tried to sell shares apprehending that listed companies would perform poorly in the coming months. 

The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), fell 9 points, or 0.15 per cent, to 6,180 points.

The DS30, the blue-chip index, rose 0.02 per cent to 2,191 points while the DSES, the index that represents Shariah-based companies, declined 0.13 per cent to 1,352 points.

The macroeconomic scenario of Bangladesh is not favourable now as is for other countries for the Russia-Ukraine war so investors are not feeling comfortable holding onto shares or investing further, said a stockbroker.

They apprehend that the performance of listed companies will deteriorate, so they are trying to sell shares, he added.

Among the companies to witness trade, 17 advanced, 136 declined and 160 remained the same.

Turnover, an important indicator of the market, increased 35 per cent to Tk 269 crore from that on the previous day.

The Dhaka stocks remained in the red for a second consecutive day as worried investors continued with their selling spree amid low trading activities, said International Leasing Securities in its daily market review.

Following the previous day's fall, the market started off on a negative note, which continued till the end of the day as investors liquidated their investment from stocks having no floor prices, it said.

Bargain hunters were active on the last hour of the session but it still failed to make the index take a U-turn. Pressure of sales in IT, services, paper and pharmaceuticals pushed the DSEX down, it added.

All sectors witnessed price corrections, except for ceramic that rose 0.2 per cent alongside life insurance which advanced 0.1 per cent.

The financial institutions sector fell 0.1 per cent, IT 2.6 per cent and service 1 per cent.

Analysis of the turnover revealed that investors' activities were mostly centred on pharmaceuticals (47.8 per cent), IT (8.8 per cent) and paper (7.8 per cent) sectors.

Islami Commercial Insurance posted the highest appreciation, of 9.90 per cent, followed by Union Capital (6.52 per cent) and Pragati Life Insurance (over 4 per cent).

Orion Infusion suffered the biggest fall, of 8.7 per cent, followed by Intraco Refueling Stations (6.6 per cent), Navana Pharmaceuticals (4.8 per cent) and Genex Infosys (4 per cent).

Intraco Refueling Stations was the stock to be traded the most, with shares worth Tk 12 crore changing hands. Bashundhara Paper Mills, Bangladesh Shipping Corporation, Pragati Life Insurance and Genex Infosys also saw significant transactions.

The Caspi, the all-share price index of Chittagong Stock Exchange, dropped 24 points, or 0.13 per cent, to end the day at 18,279 points.

Of the securities that underwent trade, 10 advanced, 42 declined and 76 did not show any price movement.