Stocks drop for third day as confidence erodes

Stocks continued to decline for a third day, as investor confidence in the market was slumping.

DSEX, the benchmark index of the Dhaka bourse, dropped 68.59 points or 1.46 percent, finishing the first day of the week at 4,608.03 points.

The weekend could not pacify investor sentiment; rather, fears escalated on the market making an unconstrained fall for a third session, said IDLC Investments.

“Doubt in the prospect of selective large-caps turned into an epidemic in the entire market. Investors' conviction on their holdings was shaken and they resorted to dumping to protect their capital,” the merchant bank said.

LankaBangla Securities said it was a poor start to the week as the equity benchmark lost around one and a half percent, weighed down by banks, real estate and pharma stocks.

Turnover, an important indicator of the market, went down 23.16 percent to Tk 310.89 crore, with 8.52 crore shares and mutual fund units changing hands on the DSE.

Of the issues that traded on the premier bourse, only 44 advanced and 250 declined, with 23 securities unchanged.

Lafarge Surma Cement dominated the turnover chart with 55.91 lakh shares worth Tk 46.65 crore changing hands, followed by BSRM Steel, Saif Powertec, KDS Accessories and Beximco Pharma.

Of the major sectors, cement took the biggest hit, slumping 4.99 percent, followed by fuel and power that declined 2.2 percent, mutual funds 1.94 percent, textiles 1.79 percent and banks 1.02 percent.

Conversely, food and allied and miscellaneous sectors rose 2 percent and 0.95 percent respectively.

IPDC was the day's best performer, advancing 7.98 percent, while Saif Powertec was the worst loser, slumping 22.64 percent.

Chittagong stocks also suffered a jolt with the bourse's benchmark index, CSCX, declining 143.78 points or 1.65 percent to stand at 8,567.93. Losers beat gainers as 192 retreated and 33 advanced, while 18 closed unchanged.

The port city bourse traded 84.30 lakh shares and mutual fund units, generating a turnover of Tk 29.93 crore.