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Stocks continue to bleed on market sell-offs

FE Report | Friday, 12 July 2019


The Dhaka bourse closed the week's last session marginally lower amid volatility on Thursday, extending the losing streak for the fifth consecutive session.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), settled 0.15 per cent or 8.32 points lower at 5222.30 points.
In the last five sessions, the index lost a total of 158 points, as worried investors dumped their shares belonging to major sectors.
The market opened the Thursday's session on a positive note and the broad index saw an upturn for an hour.
It, however, failed to keep its positive momentum in the remaining hours of the session amid choppy trading.
The index finally managed to limit its fall to 0.15 per cent as some major sectors, including the general insurance and bank, played a market supportive role.
"The persistent bearish vibe in the market kept the investors worried and provoked them to go for sell-off to avoid further losses," said a market review of the International Leasing Securities.
Two other indices of the DSE also saw downturn.
The shariah-based index, DSES, declined 0.30 per cent or 3.66 points to close at 1194.60 points.
And the DS30 index comprising blue chip securities went down by 0.17 per cent or 3.19 points to finish at 1857.71 points.
Of the total issues traded, 108 advanced, 219 declined and 26 remained unchanged on the premier bourse.
The turnover, another important indicator of the market, stood at Tk 3.51 billion, down 14.13 per cent over the previous session.
According to the EBL Securities, investors exerted selling pressure on sector-specific stocks, especially from textile, IT and financial institutions, as investors hurried to book profit.
Of the sectors which witnessed price appreciation, banking advanced 0.2 per cent, fuel & power 0.3 per cent, general insurance 0.4 per cent, life insurance 2.0 per cent, miscellaneous 0.3 per cent and tannery 0.1 per cent.
Of the sectors which lost prices, engineering declined 0.7 per cent, financial institutions 1.1 per cent, pharmaceuticals & chemicals 0.2 per cent, telecommunications 0.7 per cent and textile 1.8 per cent.
Investors' activities were concentrated mostly on general insurance sector which grabbed 17.5 per cent of the market turnover, followed by engineering (11.1 per cent), textile (10.5 per cent) and banking sector (7.80 per cent).
The National Life Insurance Company topped the turnover chart, generating a turnover of Tk 188 million, followed by Federal Insurance Company, Grameenphone, Rupali Insurance Company, and Monno Ceramic Industries.
The SEML FBLSL Growth Fund was the top gainer with a rise of 10 per cent or Tk 1.60. It closed at Tk 17.60 per cent unit.
The United Airways (Bangladesh) was the worst loser, shedding 10 per cent to close at Tk 1.80 each.
The port city bourse, Chittagong Stock Exchange (CSE), also saw majority of the securities decline on the day.
Of 263 issues traded, 64 advanced, 175 declined and 24 remained unchanged while the turnover stood at Tk 122.11 million.

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