Stocks return to losses

The key index of the Dhaka Stock Exchange (DSE) declined yesterday after  rising for just a day while turnover also dropped.

The DSEX, the benchmark index of the premier bourse of the country, fell 23 points, or 0.35 per cent, to 6,662 at the end of the day.

Turnover, an important indicator of the market, decreased by 13 per cent to Tk 557 crore yesterday.

The stocks slipped to the red after a single-day break as the investors mostly adopted a cautious stance lacking clear direction, said International Leasing Securities in its daily market review.

Investors preferred to hold onto cash ahead of upcoming Eid-ul-Fitr, for which fund flows to the market was stymied.

They also reduced their participation in the market which caused the turnover to decrease.

However, a stock broker said investors had embarked on a selling spree apprehending that the market would fall further.

Though the country's economy is bouncing back through an increased inflow of remittance and higher export earnings, it might not translate into positive gains for the index, he said.

This apprehension percolated among investors, impacting the market, he added.

On the other hand, the stock market always remains sluggish before Eid celebrations as people encash stocks for Eid shopping, added the stock broker.

A merchant banker, preferring anonymity, said the participation of institutional investors remained low while some big players were active with some stocks, which were the sole ones showcasing big movements.

Other stocks remained almost unmoved, so general investors are unhappy and their participation fell, he said, adding that a lack of confidence was one of the main reasons for the fall of the index.

To boost the confidence, the regulator should work on solving issues for the long term, he added.

At the end of the day, the DS30, the blue-chip index, and the DSES, the Shariah-based index, lost 6.60 points and 5.05 points respectively.

Among the sectors, paper and printing rose 2.3 per cent, jute 0.8 per cent and food and allied 0.6 per cent. Services and real estate dropped 1.4 per cent, IT 1.4 per cent and textile 1 per cent.

Investors' attention, as per the turnover, was mainly concentrated on financial institutions (16.7 per cent), engineering (12.1 per cent) and IT (8.8 per cent).

At the DSE, 91 stocks advanced, 234 declined and 56 remained the same.

JMI Hospital Requisite Manufacturing topped the gainers' list with a 10 per cent rise. Prime Insurance Company, Oimex Electrodes, Northern Islami Insurance and Mercantile Insurance Company also saw major gains.

Dragon Sweater and Spinning shed the most, dropping 4 per cent. Renwick Jasneswar and Company, Takaful Islami Insurnace, Savar Refractories and Genex Infosys were among those suffering heavy losses.

IPDC Finance became the stock to be traded the most, with shares worth Tk 64 crore changing hands followed by Beximco, Sonali Paper and Board Mills, LafargeHolcim Bangladesh and Genex Infosys.

Chittagong Stock Exchange (CSE) also fell yesterday. The CASPI, the main index of the CSE, edged down 49 points, or 0.25 per cent, to close the day at 19,495.

Of the 279 stocks to undergo trade, 82 rose, 159 fell and 38 did not see any price movement.