Stocks tumble for second day as banks keep losing

Dhaka,  Tue,  26 September 2017
Published : 17 Aug 2017, 22:42:52
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Stocks tumble for second day as banks keep losing

Bank, engineering, pharma sectors grab 54pc turnover
FE Report


Stocks extended their losing streak for the second consecutive session on Thursday, as the Dhaka Stock Exchange (DSE) continued to reel under profit-booking by risk-averse investors.

Dealers said investors opted to pocket profit, especially from banking stocks following their recent sharp price rise, pushing the market into the red over the past two days.

After witnessing uptrend over the last few days, the heavyweight banking sector slid 1.76 per cent on the last weekday of this week, as 29 banks, out of 30, faced correction.

Among the banks, Eastern Bank was the biggest loser, shedding 4.28 per cent, followed by Shahjalal Bank (3.63 per cent), Premier Bank (3.52 per cent), ICB Islamic Bank (3.51 per cent), IFIC Bank (3.43 per cent), AB Bank (2.87 per cent) and City Bank (2.78 per cent).

The market opened with a positive note, crossing the key index of the premier bourse 5,900-mark within the first 30 minutes of trading, but it failed to sustain the trend amid profit-booking, finally settling down more than 22 points.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), which replaced the DGEN four and a half years back, went down 22.12 points or 0.37 per cent to close at 5,861 points.

"This correction was triggered by slow participation and pursuance of profit-booking by the investors," commented City Bank Capital Resources, a merchant bank.

The turnover, the crucial indicator of the market, stood at Tk 8.32 billion on the DSE, which was 0.48 per cent higher than the previous day's mark of Tk 8.36 billion.

The heavyweight bank sector kept its dominance on the turnover chart, grabbing 25 per cent of the day's total turnover, followed by engineering (15 per cent) and pharmaceuticals (14 per cent).

The International Leasing Securities, a stockbroker, said, "Stocks observed another downbeat session amid choppy trading as the investors' bagged profit, especially on bank stocks".

"Selling of shares mostly from bank, insurance and textile sectors contributed to the fall in indices," said the stockbroker.

All large-cap sectors showed positive performance, except for banks which lost 1.76 per cent, as prices of 29 banks, out of 30, closed in the red.

Fuel & power posted the highest 1.52 per cent gain, followed by telecommunication with 1.16 per cent, food & allied 0.33 per cent, non-bank financial institutions 0.14 per cent, engineering 0.08 per cent and pharmaceuticals 0.02 per cent.

The losers took a modest lead over the gainers as out of 331 issues traded, 155 closed lower, 129 closed higher and 47 remained unchanged on the DSE trading floor.

The newly listed BBS Cables dominated the DSE turnover for the second consecutive session, with about 3.34 million shares of Tk 436 million changing hands, closely followed by IFAD Autos, IBN Sina, Salvo Chemicals and IFIC Bank.

Monno Ceramics was also the day's highest gainer, posting a 9.85 per cent rise, while Padma Life Insurance was the biggest loser, shedding 4.79 per cent.

The port city bourse, the Chittagong Stock Exchange (CSE), also finished lower with its Selective Categories Index -- CSCX -- losing 40.47 points to settle at 11,002 points.

Gainers beat losers as 119 issues closed higher, 113 closed lower and 30 remained unchanged on the CSE.

The port city bourse traded 15.64 million shares and mutual fund units, generating a turnover of Tk 462 million.

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