Stocks fall for three consecutive days
Shares suffered for the third consecutive day yesterday as the premier index of the Dhaka Stock Exchange fell amidst a set of disappointing price-sensitive information from some blue-chip companies that eroded investors’ confidence.
The DSEX, the benchmark index of the bourse, declined 26.80 points, or 0.56 percent, to finish the last day of the week at 4,710.36. In the last three sessions, the index lost 71 points.
Market insiders say some well-performing large companies disclosed lower-than-expected earnings in the last few days. As a result, their stocks fell, pulling the key index down.
Earnings per share (EPS) of the state-run Investment Corporation of Bangladesh declined to Tk 1.93 in the negative in the first quarter of 2019-20, which was Tk 0.41 in the positive during the same period a year ago.
ACI’s EPS slid to Tk 5.99 in the negative from Tk 0.97 in the positive during the same period.
EPS of United Power Generation slipped to Tk 3.06 from Tk 3.37, posted in the first quarter of last fiscal year.
Grameenphone was in a tight corner as the tussle between the largest listed company in the country and the Bangladesh Telecommunication Regulatory Commission has been lingering despite assurance from the finance minister on September 18 that the dispute over unpaid taxes would be resolved within three weeks.
GP lost about 1 percent and was a major contributor to the day’s decline of the broader index.
A stock broker says stocks have been suffering for the last few months owing to lower participation of institutional investors. The ICB is not giving support to the market and other institutional investors are shying away from making investment.
The market fall was also fueled by earnings disclosures by some large companies recently. In the last three days, the value of the stocks dropped by Tk 5,222 crore.
Turnover, another important indicator of the market, dropped 18.2 percent to Tk 319.09 crore. Of the traded issues, 132 securities advanced and 154 declined while 59 securities closed unchanged on the premier bourse.
Renata dominated the turnover chart with its shares worth Tk 14.05 crore being traded, followed by National Tubes, Square Pharmaceuticals, Fortune Shoes and Sonar Bangla Insurance.
National Feed Mill was the day’s best performer gaining 9.88 percent while the Khulna Printing & Packaging was the worst loser, shedding 6 percent.
Chattogram stocks were also down with the bourse’s benchmark index, the CSCX, decreasing 52.66 points, or 0.60 percent, to finish the day at 8,708.33.
Losers beat gainers as 133 issues declined and 80 advanced while 27 finished unchanged on the Chittagong Stock Exchange.
The port city bourse traded shares and mutual fund units worth Tk 11.08 crore.