Political turbulence depresses stocks

Stocks returned to the red yesterday thanks to investors' selling spree amid political instability.
DSEX, the benchmark general index of the Dhaka Stock Exchange, finished the day at 3,571.49 points, after falling 65.26 points or 1.79 percent.
“Jolts in the political arena once again knocked the market sentiment down, putting a flop-show since trade initiated,” IDLC Investments said in its market comments.
Meanwhile, participation continued to gain momentum as daily turnover stayed over TK 200 crore for the second session, the leading stockbroker said.
Turnover advanced 6.19 percent to Tk 219 crore, compared to the previous day.
“The decline was accommodated by increasing turnover, indicating that there were some willing sellers to seek safety,” LankaBangla Securities said in its daily analysis.
Risk-averse investors may be trying to hoard cash rather than invest in the market to patiently see their capital appreciate in the long run, it noted.
Newly listed companies continued to occupy a major part of the trading for the day, the stockbroker said.
Of the 270 issues that traded on the DSE floor, 21 advanced, 243 declined and six remained unchanged.
Investors executed 0.99 lakh trades with 6.7 crore shares and mutual fund units changing hands on the Dhaka bourse.
Non-bank financial institutions declined 2.92 percent, followed by Power 2.28 percent, pharma 1.71 percent, telecoms 1.40 percent and banks 1.01 percent.
Bengal Windsor Thermoplastic hit the secondary market and gained 120 percent from its issue price Tk 25 to close at Tk 54.80.
The new issue also topped the turnover's chart with a total turnover of Tk 34 crore, which is 15 percent of the total daily turnover.
Orion Pharma and Summit Purbanchol Power Company were the next popular stocks of the day.
Prime Finance First Mutual Fund was the worst loser of the day after shedding 9.83 percent.