Aug 26, 2023

Dhaka stocks fall for third day

Dhaka stocks fell on Monday, the third day in a row, as investors scaled back their stock market exposure due to prevailing concerns surrounding the market outlook amid political tensions in the country, market operators said.

They said that the market faced persistent selling pressure as investors cashed in on stocks, while some cautious investors chose to remain on the sideline.

Monday’s trading session started on a positive note, but after some time, it became volatile during the mid-session and eventually concluded flat by the end of the session.

DSEX, the key index of the Dhaka Stock Exchange, declined by 16.15 points, or 0.25 per cent, and settled at 6,299.65 points on Monday after losing 14.04 points in the previous trading session.

The key index of the DSE lost 43.32 points in the past three trading sessions.

The turnover on the DSE slightly increased to Tk 468.50 crore on Monday compared with that of Tk 417.64 crore on Sunday.

Out of the 336 issues traded on Monday, 28 advanced, 142 declined and 166 remained unchanged.

As the national election is approaching, the political arena is witnessing a surge in political activities.

The heightened political activities raised concerns among investors regarding the market trend, said market operators.

Besides, the country’s economy has been struggling in recent months with various challenges, including high inflation, dollar crisis and energy crisis, which has kept the market muted, they said.

EBL Securities in its daily market commentary said, ‘Dhaka stocks continued to bleed for the third consecutive session owing to depressed market sentiment and shaky investor confidence across the trading floor.’

The prolonged volatility and waning market momentum have induced the majority of investors to engage in selling binges to safeguard their funds from the ailing market, it said.

Moreover, cautious investors preferred to remain on the sideline and observe the market momentum amid the prevailing macroeconomic concerns, coupled with the rising political tensions in the country, it added.

On the sectoral front, food issues exerted the highest turnover, followed by general insurance and miscellaneous stocks.

The DSE Shariah index lost 1.95 points, or 0.14 per cent, to close at 1,366.27 points on the day.

The DS30 index shed 5.43 points, or 0.25 per cent, to finish at 2,138.40 points.

Khan Brothers PP Woven Bag Industries Limited, Union Capital Limited, Prime Bank Ltd, Premier Cement Mills PLC, Sinobangla Industries Ltd, Aziz Pipes Ltd, Sonali Paper & Board Mills Ltd, Far Chemical Industries Limited, Fu Wang Food Ltd and Yeakin Polymer Limited were the top 10 gainers considering their closing prices on the day.

Metro Spinning Ltd, Republic Insurance Company Limited, Crystal Insurance Company Limited, Meghna Condensed Milk Industries Ltd, Global Insurance Limited, Asia Insurance Limited, Janata Insurance Company Ltd, Express Insurance Limited, Mercantile Islami Insurance PLC and Peoples Insurance Company Ltd were the top 10 losers considering their closing prices on the day.

Sonali Paper & Board Mills Ltd topped the turnover chart with its shares worth Tk 37.10 crore changing hands on the day.

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