Stocks slip into red as bank shares fall

Dhaka,  Mon,  21 August 2017
Published : 17 May 2017, 22:18:35
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Stocks slip into red as bank shares fall

Turnover jumps 21pc on DSE
FE Report


Stocks returned to the red Wednesday, after a single-session break, as late hours sale pressure wiped out the early gains.

Market insiders said some investors preferred rebalancing their portfolio as most of the companies disclosed quarter-end earnings results, while some opted to book quick-gain on banks, financial institutions and power stocks, taking the market to red territory.

"Banks shares fell following the news that classified loans in the country's banking system jumped by over 18 per cent in the first quarter (Q1) of 2017, despite close monitoring by the central bank," said an analyst at a leading brokerage firm.

He said many investors were also waiting for the policy changes and economic outlook in next budget for the fiscal year 2017-18 which is scheduled to be unveiled on June 1.

Following the previous day's marginal gain, the market opened higher and the key index of the major bourse gained nearly 20 points within first hour of trading, but profit booking sale pressure eroded all the early gains.

Finally, DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 5,429.66, shedding 6.02 points or 0.11 per cent over the previous session.

IDLC Investment, a merchant bank, said: "The market declined again, despite upbeat start in the morning. Although the market tried to turn around in the mid-session, sellers persisted and netted a negative close for the market."

However, the two other indices managed to stay positive. The DS30 index, comprising the blue-chips, advanced 4.34 points or 0.21 per cent to finish at 2,002.

The DSE Shariah Index (DSES) also saw a fractional gain of 0.22 point or 0.02 per cent to close at 1,258.62.

The port city bourse, the Chittagong Stock Exchange (CSE), also edged lower with its Selective Categories Index - CSCX - losing 10.22 points to settle at 10,192.

Losers beat gainers as 131 issues closed lower, 88 closed higher and 27 remained unchanged on the CSE.

The port city bourse traded 12.13 million shares and mutual fund units worth nearly Tk 430 million in turnover.

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