Stocks hit by probe report jitters
Stocks declined as investors feared a negative impact of a probe report expected to be submitted to the government this week.
The benchmark general index of Dhaka Stock Exchange slumped by 80 points, or 1.22 percent, to 6,455 points. The selective price index of Chittagong Stock Exchange lost 38 points, or 0.32 percent, to end on 11,656 points.
Market insiders said investors, including the institutions, became nervous as they seemed unsure about how the market would behave after the release of the investigation report.
The government formed a probe committee in January to find the culprits behind the January stock market crash.
Turnover increased on the day despite volatile trading on the DSE floor, said insiders.
Daily turnover on the DSE stood at Tk 1,148 crore, up by Tk 87.90 crore from the previous day of trading.
Prof Salahuddin Ahmed Khan, who teaches finance at Dhaka University, said: "Some negative reports of the national dailies on January's market debacle pushed down the bourses."
Khan, also former chief executive officer of DSE, said some investors adopted a wait-and-see policy after selling off shares.
Prof Mahmud Osman Imam, who teaches finance at Dhaka University, said: “People are observing the situation in the market."
"Some media reports spread rumours on the market. As a result, investors became confused about what was happening really,” said Osman.
Most of the major sectors such as banks lost 1.81 percent, non-bank financial institutions 1.32 percent, fuel and power 1.43 percent, telecoms 0.82 percent and pharmaceuticals 0.12 percent.
Of the total 261 issues traded on the DSE floor, 94 advanced, 159 declined and eight remained unchanged.
Aftab Automobiles topped the turnover leaders with 15.74 lakh shares worth Tk 48.43 crore traded.
The other turnover leaders were Confidence Cement, Beximco, Bextex, Union Capital, Bay Leasing and Investment, People's Leasing and Investment Services, Golden Son, Titas Gas and Bangladesh Finance and Investment.
Central Insurance was the biggest gainer of the day, posting a 6.69 percent rise in its share prices, while Union Capital was the worst loser, slumping by 41.85 percent.
Comments