Stocks slip for second day

Stocks declined for the second day as investors went for panic sell-offs due to low confidence of investors apparently.
DGEN, the benchmark General Index of Dhaka Stock Exchange, finished the day at 4,226.41 points, after falling 115.22 points or 2.65 percent, the highest single day fall in the past month.
“The market remained less lucrative to the participants and their confidence level dampened further,” IDLC Investments said in its market commentary. “This fuelled the 'fear' factor to dominate investment psychology and caused panic sale.”
“News published in newspapers regarding a guidance note to be issued by Bangladesh Bank to prevent investment of money earned through criminal activities or suspicious activities in the capital market has weighed down heavily upon the nervous investors,” LankaBangla Securities said.
“Top traded stocks were at the front of the market decline. Top traded United Airways continued to decline with heavy volume as confusion arises regarding published earnings per share and deferred tax liability of the company,” it said.
“Even once resilient shares of multinational companies corrected severely as the market decline progressed. Poor earnings disclosed by most of the companies have limited the upside potential of the heavy weight sectors,” the stockbroker said.
Turnover declined 31.35 percent to Tk 253 crore, compared to the previous day. A total of 0.78 lakh trades were executed with 7.82 crore shares and mutual fund units changing hands on the Dhaka bourse.
Of the 270 issues that traded on the DSE, 255 declined, nine advanced and six remained unchanged.
All the major sectors fell significantly with telecomm 3.46 percent followed by non-bank financial institutions 2.66 percent and power 2.44 percent. Pharma lost 2.09 percent and banks 1.62 percent.
United Airways featured in the most traded stocks chart with 1.69 crore shares worth Tk 36.10 crore changing hands.
AB Bank First Mutual Fund was the biggest gainer of the day, at it rose 4.30 percent, while Aamra Technologies was the worst loser, plunging 9.42 percent.