The spiralling nonper-forming loan (NPL) of the banking sector weighed down shares of banks and non-bank financial institutions hitting Dhaka stocks with a 0.49 percent fall yesterday.
Among the 30 listed banks, prices of 23 fell, four remained unchanged and three rose, an almost similar trend seen in the previous trading day on Thursday.
Shares of Dhaka Bank, IFIC, EBL, Islami Bank Bangladesh, One, Rupali and Standard Bank closed to their lowest levels in six months.
The banking sector's rising NPL is to blame for the fall, said Shakil Rizvi, president of the DSE Brokers' Association.
The NPL touched Tk 99,370 crore at the end of the third quarter, which is up by 11.23 percent compared to the previous quarter and 24 percent year-on-year, according to Bangladesh Bank data.
The banking stocks along with the market started falling as soon as the news of the spiralling NPL surfaced on Thursday, he said.
The DSEX, the key index of the Dhaka Stock Exchange, fell 28.30 points to 5,332.80 on Thursday. It dropped 26.57 points to close the day at 5,306 yesterday.
“Banking is a big sector for the stockmarket. That's why the fall in banking stocks has impacted the benchmark index of the DSE,” said Rizvi, also the managing director of Shakil Rizvi Stock Ltd, a brokerage house.
Of the top three negative index contributors, two were banks -- Brac Bank and EBL, according to IDLC Securities. The third one was Beximco Pharma.
Five of the major losers also came from banks and NBFIs -- EBL, Brac Bank, IDLC, IPDC and City Bank.
Turnover of the market stood at Tk 516.79 crore, up 0.53 percent from the previous day.
United Power Generation was the most traded stock with a turnover of Tk 26.87 crore.
Among the major sectors, textile fell 1.91 percent, bank 1.20 percent and NBFI 0.98 percent while life insurance rose 4.08 percent, miscellaneous 2.39 percent and fuel and power 0.62 percent, according to UCB Capital Management.
Jute Spinners was the day's best performer with a 10 percent gain while RN Spinning Mills was the biggest loser, shedding 8.16 percent.
Of the traded issues, 112 advanced, 195 declined and 34 closed unchanged on the premier bourse.
The key index of the port city bourse also fell by 42.34 points, or 0.42 percent, before finishing the day at 9,836.32.
The Chattogram Stock Exchange traded 78.70 lakh shares and mutual fund units worth Tk 20.19 crore.