Stocks fizzle after brief recovery
Stocks fell yesterday, snapping a two-day surge because of profit-booking tendency involving some stocks and the protracted liquidity crisis.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dropped 41.51 points, or 0.83 percent, to 4958.72, falling again below the psychological 5,000-mark. In the previous two sessions, the index had edged up 144 points.
Market analysts termed the fall a correction as some stocks slipped after rising 5 percent to 26 percent in the last few days.
For instance, stocks of Grameenphone fell around 1 percent after advancing around 26 percent in the previous 12 trading days. Similarly, stocks of Renata had risen 10.87 percent during the period but it fell 1.76 percent yesterday.
UCB Capital Management, a stock broker, said in its daily market analysis that the dearth of liquidity is still keeping the market in the bear territory for an extended period.
Large-cap scrips, namely Grameenphone, United Power Generation, and British American Tobacco led the downturn of the index and most of the major sectors, except general insurance, faced correction, it added.
An asset manager said the central bank’s decision to provide liquidity support to banks to invest has created hope among general investors.
This led them to buy shares on Monday but the fund has not entered the market yet, he said, adding that the market is still facing liquidity crunch as institutional investors have not become active.
Turnover, another important indicator of the market, nosedived 21.59 percent to Tk 405.63 crore.
The top three negative index contributors were Grameenphone, United Power Generation and British American Tobacco.
Of the traded stocks, 103 gained, 214 dropped and 34 remained unchanged.
Among the major sectors, non-bank financial institutions exhibited the highest positive movement of 3.58 percent while fuel and power showed negative movement of 0.12 percent.
The energy sector dipped 1.6 percent while general insurance rose 1.5 percent.
SEML Lecture Equity Management Fund topped the gainers’ list with a rise of 10 percent. The worst loser was Fortune Shoes, which gave up 9.11 percent.
Fortune Shoes became the top-traded stock on the day with its shares worth Tk 19.72 crore changing hands, followed by GP, Beacon Pharmaceuticals, Sonar Bangla Insurance and National Tubes.
Chattogram stocks also slipped with the bourse’s benchmark index, the CSCX, shedding 83.15 points, or 0.89 percent, to finish at 9,158.56.
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