Stocks fall for fifth day straight

Stocks listed with the country's premier bourse in Dhaka yesterday extended their losing streak to a fifth consecutive session, pushing its benchmark index below the 6,400-mark as shaky investors continued their selling spree.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell 10 points, or 0.16 per cent, to close the day at 6,390 points.

Meanwhile, turnover at the DSE dropped 17 per cent to Tk 1,178 crore while it was Tk 1,005 crore the previous trading day.

The DS30, the index consisting of blue-chip companies, edged down by 0.28 per cent to 2,271 while the DSES, the shariah-complaint index, experienced a similar decline to hit 1,407.

The stocks dropped as investors opted to stay on the sidelines amid global economic uncertainty caused by rising inflation worldwide, International Leasing Securities said in its daily market review.

In the morning session, the market witnessed buying pressure that reverted afterward due to the investors' confidence crisis, it added.

Among the sectors, jute advanced 5.9 per cent, IT rose 1.5 per cent and life insurance increased 0.5 per cent while services dropped 5 per cent, travel fell 2.1 per cent and miscellaneous shed 1.1 per cent.

The investors' focus was mainly on the pharmaceutical (18.4 per cent), engineering (16.4 per cent) and miscellaneous (12.1 per cent) sectors.

At the DSE, 59 securities advanced, 81 declined, and 226 remained the same.

"Tension over the current economic scenario is rising and so, general investors are not buying shares," a stockbroker said.

"If exports and remittance continue to fall along with the country's forex reserve, then the local currency may fall further," he added.

In addition, the interest rate in the banking sector may rise as the inflation rate already crossed 9 per cent, which will further impact the stock market.

"These tensions were the main reasons for the index fall," the stockbroker said.

Navana CNG topped the gainers' list by advancing 9.89 per cent while Navana Pharmaceuticals, ADN Telecom, Aramit Ltd, and Rangpur Foundry each rose by more than 7 per cent.

Eastern Housing suffered the highest correction, losing almost 10 per cent. Meanwhile, Bangladesh Building Systems, Indo-Bangla Pharmaceuticals, JMI Hospital, and Bashundhara Paper Mills all declined by more than 6 per cent.

The CASPI, the all-share price index of the Chittagong Stock Exchange, lost 33 points, or 0.17 per cent, to end at 18,820.

Of the issues traded at the port city bourse, 58 advanced, 57 declined, and 97 did not show any price movement.