Stock index falls below 4,900 again

Dhaka stocks continued to suffer for a second day yesterday thanks to the thin participation of institutional investors and decreasing foreign fund in the capital market.

The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), declined 22.3 points or 0.45 percent before finishing the day at 4,894.31. The index lost 43 points in the last two trading days.

After a break of 11 trading days, the Dhaka bourses’ premier index has dropped again under the 4,900-point level.

Turnover, another important indicator of the DSE, also dropped to Tk 301.99 crore.

Investors were keeping their money to themselves and had adopted a wait-and-see approach because of a confidence crisis, market insiders said.

Foreign investors sold more shares than what they bought as the depreciation of the dollar intensified in the last two days.

Yesterday, the dollar was sold at Tk 84.65. On Thursday last week, it was Tk 84.50.

When the local currency depreciates, foreign investors need to make more profit to regain their dollars, said a stock broker. “So they sell shares when they apprehend further depreciation.” According to the IDLC Securities data, yesterday’s top three negative index contributors were Grameenphone, Olympic Industries and United Power Generation.

According to the DSE data, National Tubes dominated the turnover chart with a turnover of Tk 20.98 crore, followed by Wata Chemicals, Standard Ceramic, Monno Jute Stafflers and United Power Generation.

CAPM IBBL Islamic Mutual Fund was the day’s best performer with a 9.80 percent gain while First Finance the worst loser shedding 7.89 percent.

Of the traded issues, 74 advanced, 251 declined and 29 closed unchanged on the premier bourse.

Chattogram stocks also fell yesterday with the bourse’s benchmark index, the CSCX, declining 50.57 points, or 0.55 percent, to finish the day at 9,036.35. Losers beat gainers as 152 issues declined, 61 advanced while 33 finished unchanged on Chittagong Stock Exchange.