Stocks take a tumble despite blue-chip boost

The prime index of Dhaka Stock Exchange (DSE) dropped yesterday despite a rise in prices of blue-chip stocks amid increased purchase by institutional investors.

The blue-chip index, DS-30, rose by 10 points while the DSEX fell by 4 points, or 0.07 per cent, to 6,208.

As many companies fell by a higher extent, the prime index fell despite the rise of blue-chip stocks, said a stock broker

According to data from the DSE, 75 non-blue chip companies dropped by more than 2 per cent.

Meanwhile, Grameenphone had a big impact on the blue-chip index as it surged 1 per cent.

Institutional investors are currently active in the market and are buying good stocks.

"So, the blue-chip index is rising," said the stock broker.

However, general investors are not returning to good stocks, and instead are pouring money into shares with low fundamental values.

"This is a very big concern for the market," he added.

Among yesterday's top five gainers at the DSE, three were junk stocks. One was from the B-category and while another was a new company, showed the DSE data.

Turnover, an important indicator of the market, soared 7 per cent to Tk 1,599 crore.

At the DSE, 159 stocks advanced, 186 fell and 27 remained unchanged.

Sonali Life Insurance topped the gainers' list, rising 440 per cent, followed by Tung Hai Knitting and Dyeing, Paper Processing & Packaging, CVO Petrochemical Refinery, and Tamijuddin Textiles.

Stocks of Beximco traded the most, worth Tk 120 crore, followed by Power Grid Company, BD Finance, Sonali Life Insurance, and LafargeHolcim Bangladesh.

Purabi General Insurance shed the most, losing 6.39 per cent, followed by Monno Fabrics, Phoenix Insurance, Reliance Insurance, and Green Delta Insurance.

Unlike the DSE, Chittagong Stock Exchange (CSE) surged yesterday. The CASPI, the general index of the port city bourse, rose 38 points, or 0.21 per cent, to 18,040.

Among the 306 stocks to witness trade, 130 rose, 147 fell and 29 remained unchanged.