Stocks shaken by weak data, market at six-month low

The key index of the Dhaka bourse yesterday dipped below the 4,400-point level for the first time in six months amid continuous selling pressure.

DSEX, the benchmark index of the Dhaka Stock Exchange, shed 39.03 points or 0.88 percent to close the day at 4371.54 points. The index stood at 4,315.99 points on May 17.

“Volatility surged and put the investors in a cautious mood,” IDLC Investments said in its regular market analysis.

Investors remained hesitant to inject fresh funds into the market amid weak revenue earnings by listed firms, slow export growth and sluggish investment, it said.

Turnover, another important indicator of the market, dropped 13.3 percent to Tk 255.02 crore, with 7.69 crore shares and mutual fund units changing hands on the DSE.

Shaky economic cues were weighing heavy on investor sentiments, LankaBangla Securities concurred.

The inter-bank call money rate dropped to as low as 2.5 percent on Tuesday for the first time in more than five years as lower demand for fresh credit as well as access to foreign currency loans by local companies have contributed to surplus liquidity in money market, it said.

Of traded issues, 95 advanced and 185 declined with 34 securities closing unchanged on the premier bourse.

Titas Gas dominated the turnover chart with 79.21 lakh shares worth Tk 39.69 crore changing hands, followed by Saif Powertec, Ifad Autos, Beximco and Square Pharma.

Among the major sectors, fuel and power took the hardest hit with a 3.53 percent fall in market capitalisation, followed by non-bank financial institutions that lost 1.85 percent, pharma 0.69 percent, banks 0.51 percent and textile 0.35 percent.

Conversely, only the food and allied sector rose 0.18 percent.

Sonali Aansh was the day's best performer with 10 percent gains, while Standard Insurance was the worst loser. 

Chittagong stocks went down with the bourse's benchmark index, CSCX, declining 58.15 points or 0.7 percent to finish the day at 8,134.11 points.

Losers beat gainers as 148 declined and 55 advanced, while 38 remained stable at the end of trade on the Chittagong Stock Exchange.

The port city bourse traded 61.87 lakh shares and mutual fund units worth Tk 22.55 crore in turnover.