Key index dips below 5600-mark

Dhaka,  Sun,  20 August 2017
Published : 16 Apr 2017, 21:34:42
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Key index dips below 5600-mark

DSEX sheds 185 points in eight sessions
Key index dips below 5600-mark
FE Report


Stocks extended their losing streak for the eighth session in a row Sunday, with key index of the premier bourse falling below the 5,600-mark after six weeks.

Analysts said the market faced a major setback as worried investors continued their selling spree, especially the issues from financial institution, bank, telecom and engineering sectors.

"The weakness on capital market came as investors were cashing in on stocks to safeguard their position and most of the large-cap issues faced price erosion, dragging the market down," said an analyst at a leading brokerage firm.

The market started with a downward trend as sell pressure was intense from the beginning of the session and the downturn continued till the end of the session, ultimately ending 53 points lower.

After the four hours trading session, DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 5,592.83, plunging by 53.03 points or 0.94 per cent.

It was also the biggest single-day fall in the last two-and-a-half months since February 2, this year, when DSEX plummeted 109 points.

DSEX lost about 185 points in the past eight consecutive sessions after reaching record high of 5,777 points on April 4 since its introduction in January, 2013.

International Leasing Securities, a stockbroker, said, "The benchmark index of the prime bourse faced a major setback, extending the losing spell for the eighth consecutive sessions, as the investors were mostly on selling mood".

The stockbroker noted that the shaky investors started the session with selling frenzy and there was no sign of intraday reversal which led the indices to close below 5,600-mark once again.

"Notable sale pressure was observed on the financial institution, bank, food and allied and engineering sectors that contributed to the fall in indices," said the stockbroker.

The two other indices also saw sharp fall. The DS30, comprising blue chips, fell 27.64 points or 1.32 per cent to finish at 2,059.70. The DSE Shariah Index (DSES) lost 8.11 points or 0.62 per cent to settle at 1286.76.

However, turnover on the DSE rose to Tk 7.24 billion, which was nearly 22 per cent higher than the previous day's two months' lowest turnover of Tk 5.95 billion.

Textile sector emerged as turnover leader, capturing nearly 25 per cent of the day's total turnover, followed by bank 17 per cent and financial institutions 13 per cent.

IDLC Investments, a merchant bank, said, "Strong sell pressure precipitated steep decline in the market, pushing 196 issues in the red zone, as against 90 issues closing in the green".

The merchant bank noted that the fall caused DSEX to shed 53 points, the highest one-day decline in the last 49 sessions.

All the large-cap sectors closed lower. The financial institutions posted the highest loss of 2.67 per cent, followed by banks 1.50 per cent, food and allied 1.22 per cent and engineering 1.06 per cent.

Pharmaceuticals, telecommunication and fuel and power also lost 0.49 per cent, 0.44 per cent and 0.23 per cent respectively.

Losers took a strong lead over the gainers, as prices of 196 securities declined, 90 advanced and 40 remained unchanged out of the 326 issues that were traded on the DSE floor.

LankaBangla Finance topped the DSE turnover chart for the fifth day in a row with about 7.81 million shares worth nearly Tk 467 million changing hands, followed by City Bank, Evince Textile, Paramount Textile and Beximco.

Central Pharmaceuticals was the day's highest gainer, posting 9.12 per cent gain, while Standard Bank was the worst loser, losing 11.02 per cent following its price adjustment after record date.

The port city bourse, the Chittagong Stock Exchange (CSE), also ended down with its Selective Categories Index - CSCX - losing 92.15 points to settle at 10,501.56.

Losers beat gainers as 140 issues closed lower, 68 closed higher and 29 remained unchanged on the CSE.

The port city bourse traded 19.80 million shares and mutual fund units' worth over Tk 472 million in turnover.

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