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Stocks slide as MNCs face price correction

Berger Paints, GP, Bata Shoe, Marico worst sufferers

FE Report | February 12, 2019 00:00:00

The stock market continued its downward trend for the second straight session on Monday as the selling pressure on multinational companies persisted.

Market analysts said the index fell as shaky investors opted to book profit on stocks, particularly multinational companies (MNCs), which saw sharp gains in recent days.

Among the MNCs, Berger Paints Bangladesh, which surged 35 per cent in the past 10 trading days, witnessed a 5.14 per cent correction on Monday.

Grameenphone (GP), the largest market-cap listed company, also lost 2.10 per cent to close at Tk 397.60 each.

Share prices of Bata Shoe, Marico, Linde BD, GlaxoSmithKline and Renwick Jajneswar also dipped 3.95 per cent, 3.24 per cent, 2.81 per cent, 2.71 per cent and 1.13 per cent respectively.

A leading broker said investors sold off shares of MNCs and the banking sector ahead of earnings and dividend declarations and the looming deadline for banks' advance-deposit ratio adjustment.

The market started with a downward trend and the negative trend continued till end of the session.

At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 5,733, wiping out 29.82 points or 0.51 per cent over the previous day.

Two other indices also ended lower. The DS30 index, comprising blue chips, fell 21.65 points to finish at 2,002. The DSES (Shariah) index also lost 8.65 points to settle at 1,311.

Turnover, another important indicator of the market, stood at Tk 7.19 billion, which was 11 per cent lower than the previous day's turnover of Tk 8.12 billion.

According to International Leasing Securities, the depressed market outlook kept the investors worried, which resulted in poor market participation.

Shaky investors opted to liquidate their holding of shares from telecoms, power, pharma, bank and financial institution sectors to avoid further losses, which contributed to the fall in indices.

Telecommunications posted the highest loss of 2.10 per cent, followed by cement (1.90 per cent), power (1.10 per cent), pharmaceuticals (1.10 per cent), banking (0.60 per cent) and non-banking financial institutions (0.50 per cent).

A total of 163,695 trades were executed in the day's trading session, with trading volume standing at 162.16 million shares and mutual fund units.

The market-cap of the DSE fell to Tk 4,166 billion from Tk 4,197 billion in the previous day.

The gainers took a modest lead over the losers, as out of 345 issues traded, 155 closed higher, 151 ended lower and 39 remained unchanged on the DSE trading floor.

United Power topped the day's turnover chart for the sixth straight session with 1.03 million shares worth Tk 426 million changing hands, closely followed by Monno Ceramic, Doreen Power, Fortune Shoes and Provati Insurance.

The port city bourse -- Chittagong Stock Exchange (CSE) -- also closed lower with the CSE All Share Price Index - CASPI - losing 21 points to settle at 17,574 while the Selective Categories Index - CSCX - shedding 11 points to finish at 10,634.

Here too, the gainers beat the losers as 125 issues ended higher, 110 lower and 28 remained unchanged.

The port city bourse traded 7.83 million shares and mutual fund units worth more than Tk 215 million in turnover.


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