Stocks drop for fifth consecutive day

Shares on the Dhaka Stock Exchange (DSE) dropped for the fifth consecutive day yesterday after averting another big fall thanks to the support from some institutional investors in the last hour.

At one point, the DSEX, the benchmark index of the premier bourse, had lost 112 points as worries about the economy's worsening health owing to the lingering Russian-Ukraine war, the coronavirus pandemic, the taka's major devaluation, and rising inflationary pressures weighed on investors' minds. 

It pared losses in the last hour and finally settled at 6,403, down 27 points, or 0.42 per cent. In the last five days, the index shed 295 points.

The turnover fell around 24 per cent to Tk 779 crore on the day from Tk 1,024 crore on the previous day. Among the securities, 89 advanced, 245 declined and 45 remained unchanged.

"The stocks continued their losing streak as risk-averse investors kept their selling spree on sector-specific issues to avoid further erosion of their portfolios," said International Leasing Securities in its daily market review.

"The investors are more conservative nowadays because of the negative global macroeconomic outlook and the worsening local outlook amid deteriorating exchange rate and inflation pressure, along with the existing threat to corporate profitability."

On Monday, the taka lost 0.91 per cent in value against US dollars, the sharpest single-day fall in the past decade, amid the falling supply of the American greenback against surging demand to settle import bills.

Because of the squeezing supply of the American greenback, travelers had to pay between Tk 97 and Tk 102 per USD at banks yesterday. 

Bangladesh is under tremendous pressure to weaken the taka to protect its depleting foreign currency reserves amid soaring imports against moderate exports and falling remittances.

The DS30, the blue-chip index, and the DSES, the Shariah-based index, lost 2.26 points and 1.53 points, respectively.

Among the major sectors, cement plunged 1.9 per cent, paper dropped 1.3 per cent and tannery fell 0.2 per cent.

The investors' activity was mostly concentrated on pharmaceuticals (14.8 per cent), miscellaneous (12.8 per cent), and textile (9.1 per cent).

Daffodil Computers topped the gainers' list thanks to a 9.97 per cent gain. International Leasing Financial Services, Fu-Wang Ceramic Industries, ICB AMCL First Agrani Bank Mutual Fund, and Bangas also saw major gains.

RD Food shed the most with a 4.9 per cent drop. Sonar Bangla Insurance, IPDC Finance, Jute Spinners, and Pragati Insurance were among the heavy losers.

Beximco Ltd became the most traded stock on the day with its shares worth Tk 47 crore changing hands, followed by Shinepukur Ceramics, JMI Hospitals, Salvo Chemical Industries, and Fu-Wang Ceramic Industries.

The Chittagong Stock Exchange (CSE) also fell. The CASPI, the main index of the CSE, was down 121 points, or 0.64 per cent, to close the day at 18,745.

Of the 293 stocks traded on the bourse in the port city, 66 rose, 195 fell, and 32 did not see any price movement.