Stocks back in the red
The premier bourse fell again yesterday just after a day’s surge as the fresh Tk 1,000 crore investment plan of the Investment Corporation of Bangladesh (ICB) has also failed to boost investors’ confidence.
Yesterday the DSEX, the benchmark index of Dhaka Stock Exchange, shed 40.01 points to close the day at 4,781.62.
General investors followed suit of their foreign counterparts who went for huge sell-offs, pulling down the DSEX by 0.83 percent on the day.
After falling for six consecutive days, the index jumped 110.33 points on Tuesday thanks to the ICB’s declaration the day before.
On Monday, the state-run corporation announced that it would start buying shares with Tk 200 crore it has at present and with another Tk 800 crore that it will get from four state-run banks through issuing bonds.
“This amount is not enough for the market, as Tk 800 crore is still not on the account of the ICB,” said a top official of a leading brokerage house, preferring anonymity.
He said the stock investors are suffering from a huge confidence crisis, so such a support is not enough to tackle the crisis.
On the other hand, foreign investors were also in the mood for sales as the local currency is depreciating day by day, he added.
Yesterday, each dollar sold at Tk 84.70 which was Tk 84.40 just one month earlier, according to Bangladesh Bank data.
Another brokerage house official said he had to sell some well-performing stocks according to the orders placed by the foreigners.
So, such companies fell mostly yesterday, he added. According to data of amarstock.com, a stock market data analyst, top negative index contributors of the market were Grameenphone, United Power Generation, British American Tobacco Bangladesh, Square Pharmaceuticals and Brac Bank.
The DSEX lost 22 points because of these five stocks. Turnover, another important indicator of the market, dropped 1 percent to Tk 324.57 crore.
Of the traded issues, 65 advanced, 259 declined, and 30 remained unchanged.
Bangladesh Shipping Corporation dominated the turnover chart with Tk 21.41 crore-worth shares followed by National Tubes, Summit Power, Grameenphone and Standard Ceramics.
First Finance was the day’s best performer with a 9.67 percent gain while Khan Brothers PP Woven Bag Industries was the worst loser, shedding 8.79 percent.
Chattogram stocks also fell with the bourse’s benchmark index, the CSCX, declining 54.37 points, or 0.61 percent, to finish the day at 8,845.17.
Losers beat gainers as 159 declined, 59 advanced and 29 finished unchanged on Chittagong Stock Exchange.
The port city bourse traded shares and mutual funds worth Tk 15.50 crore.
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