Dhaka stocks lower as investors unnerved by polls uncertainty

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FE Report
Dhaka stocks finished lower Thursday amidst the investors' worry over the uncertainty shrouding the holding of the upcoming national election.
The latest political development has left the already-shaken investors unnerved, sending the market into the negative territory, analysts said.
Trading at the Dhaka Stock Exchange (DSE) fluctuated heavily throughout the whole session as the benchmark index started to nosedive from the very outset of trade on selling pressure from the retail investors.
The benchmark DSE General Index (DGEN) shed more than 61 points in the first hour of trade and share prices of all issues went into the red in early trading.
Later, it seesawed until the end of trade but recovered some points on strong buying support from the institutional investors.
The DGEN, the All Shares Price Index (DSI) and the DSE20 blue chip index lost 9.92 points, 8.80 points and 2.49 points to close at 2615.92, 2161.99 and 2193.43 respectively.
The losers took a strong lead over the gainers. Of the total 229 issues traded on the day, 87 gained, 131 declined and 11 remained unchanged.
"The obvious reason behind today's market behaviour is the uncertainty over a participatory general election," said Mahmudul Bari, deputy general manager of the Merchant Banking Division of IDLC Finance Limited.
The prevailing political uncertainty hit the sentiment of the investors, already nervy because of the protracted bearish spell, he said adding that many investors stayed on the sidelines, apparently waiting for positive development.
However, the market has the potential to rise at the same speed it was falling as soon as the dusts on the political front settle down, Bari expressed his hope.
A stockbroker said the investors on the day expected a positive solution to holding the national election. "But the hopes faded when an uncertainty gripped the BNP-led four-party alliance's participation in the election, inviting adverse reactions from the already-shaken investors," he added.
He said, the latest political development has also put the loan margin ratio raised by the securities regulator aiming to reverse the sluggish market situation.
The day's total turnover declined to Tk 2.01 billion against the previous day's Tk 2.49 billion while the market capitalisation came down to Tk 959.09 billion from Tk 962.05 billion of the day before.
Beximco Pharma was the top turnover leader with shares worth Tk 294.22 million traded. Uttara Bank, Beximco Limited, BRAC Bank, Titas Gas, Dutch-Bangla Bank, Square Pharma and AB Bank were the day's next other turnover leaders in terms of value.
The share price of Savar Refractories posted the biggest gain of 18.28 per cent, followed by Beximco Limited with 6.42 per cent, Desh Garments 5.97 per cent, Beximco Synthetic 4.46 per cent and Beximco Pharma 4.11 per cent.
Top losers were Metalex Corporation, Rose Heaven Ballpen, Tulip Dairy and Food, Mona Food, Aramit Cement, Chittagong Vegetable, Fine Foods, Wonderland Toys, Hakkani Pulp and Paper, and Dhaka Fisheries.