Stocks in free fall despite favourable conditions | The Daily Star
12:00 AM, April 24, 2017 / LAST MODIFIED: 12:00 AM, April 24, 2017

Stocks in free fall despite favourable conditions

Stocks continued to fall for the fourth session yesterday, with analysts finding no apparent reasons behind the recent downtrend.

DSEX, the benchmark index of Dhaka Stock Exchange, dropped 83.41 points or 1.51 percent to finish the first day of the week at 5,438.24 points, the lowest in two and a half months.

“The political scenario is stable, economic indicators are good and there is no move from the regulatory side either. So, we expect the market to act accordingly, but it is not,” said a stockbroker. “We don't know what the problem is.”

Market intermediaries, such as merchant banks, stockbrokers and dealers, are all oblivious to the reasons for the fall.

IDLC Investments, a merchant bank, in its regular analysis said the selling pressure overwhelmed demand significantly, causing most securities to decline.

The day's turnover, another important indicator of the market, declined 9.3 percent to stand at Tk 506.22 crore yesterday, with 16.3 crore shares and mutual fund units changing hands on the DSE.

Of the traded issues, only 33 advanced and 274 declined, while 17 securities closed unchanged on the premier bourse.

LankaBangla Finance dominated the turnover chart with 87.69 lakh shares worth Tk 43.98 crore changing hands, followed by Bdcom Online, Beximco, Beximco Pharma and Saif Powertec.

All major sectors declined in market capitalisation. Banks faced the biggest blow, falling 2.35 percent, followed by general insurance that slid 1.88 percent, non-bank financial institutions 1.63 percent, engineering 1.5 percent, textiles 1.45 percent, cement 1.02 percent and life insurance 0.89 percent.

Sector-wise only telecom rose, by 1.06 percent, in market capitalisation, led by Grameenphone that disclosed impressive earnings yesterday for the first quarter.

Prime Insurance was the day's best performer with 9.69 percent in gains, while One Bank was the worst loser, shedding 16.66 percent.

Chittagong stocks also suffered a big jolt yesterday with the bourse's benchmark index, CSCX, declining 153.95 points or 1.48 percent to finish the day at 10,214.66 points.

Losers outnumbered gainers as 195 declined and 28 advanced, while 12 finished unchanged on the Chittagong Stock Exchange.

The port city bourse traded 1.36 crore shares and mutual fund units worth Tk 34.32 crore in turnover.

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