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Core index sheds 141 points in last three sessions

FE Report | April 10, 2019 00:00:00

The Dhaka bourse Tuesday posted another sharp fall extending the losing streak for third consecutive session amid investors' lack of confidence.

Following investors' selling pressure, the DSEX, the broad index of Dhaka Stock Exchange (DSE), lost 141 points in last three sessions.

The market capitalisation on the premier bourse DSE declined 2.69 per cent or Tk 110.15 billion.

The merchant bankers and stock brokers blamed the liquidity crisis and insufficient quality IPOs (initial public offering) behind the investors' lack of confidence.

The DSE opened the Tuesday's session with a negative note and the DSEX lost 43 points within an hour.

Later, a recovery stance was observed and the broad index crossed the day's starting mark.

After mid session, the recovery stance failed to sustain and the DSEX closed the session with a significant loss.

At the end of the session, the DSEX settled at 5318.48 points with a loss of 0.99 per cent or 53.48 points.

Following the ongoing declining trend of the market, the DSE Brokers Association (DBA) and Bangladesh Merchant Bankers Association (BMBA) held an urgent meeting on Tuesday at DSE office.

After the meeting, the representatives of DBA and BMBA held a press briefing and stressed on quality IPOs and some other market supportive measures.

On Tuesday, the shariah based index DSES lost 0.61 per cent or 7.61 points to close at 1232.99 points.

The DS30 index comprising blue chip securities went down by 1.24 per cent or 23.99 points to close at 1900.53 points.

Of total issues traded, 57 advanced, 231 declined and 59 were unchanged.

The turnover stood at above Tk 3.65 billion which was 12.46 per cent less than the turnover of the previous session.

"The Dhaka bourse suffered from a significant loss in its benchmark index on Tuesday as the shaky investors dominated the day's session," said a market review of the International Leasing Securities.

It said the jittery investors opted to liquidate their holding from almost all the sectors stocks, especially from large cap stocks as like BATBC, GP and UPGDCL to escape further losses.

Of the major sectors which declined, bank lost 0.8 per cent, engineering 0.8 per cent, financial institutions 0.8 per cent, fuel & power 3.5 per cent, pharmaceuticals & chemicals 0.4 per cent, telecommunication 2.4 per cent and textile 1.1 per cent.

Mutual Fund sector was the only gainer which advanced 0.1 per cent on the DSE.

Investors' participation was concentrated mostly on fuel & power which grabbed 15.60 per cent of the market turnover followed by textile 15.50 per cent, engineering 13.30 per cent, pharmaceuticals & chemicals 11.10 per cent and food & allied 9.20 per cent.

Esquire Knit Composite made its debut trading on Tuesday and topped the turnover chart with a value of Tk 328 million followed by United Power Generation & Distribution Company Tk 232 million, British American Tobacco Bangladesh Company (BATBC) Tk 207 million, Eastern cables Tk 114 million, and Grameenphone Tk 91 million.

Agrani Insurance Company was the number one gainer with a rise of 6.21 per cent to close at Tk 35.90 each.

R. N. Spinning Mills was the worst loser with 9.85 per cent fall to close at Tk 6.40 each.

On Tuesday, all indices also declined on the Chittagong Stock Exchange (CSE).

The benchmark index CASPI went down by 1.0 per cent or 165.09 points to close at 16313.89 points.

Of 235 issues traded, 52 advanced, 162 declined and 21 were unchanged and the turnover stood at above Tk 189.30 million on the port city bourse CSE.


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