Sagging investor confidence weighs on Dhaka stocks

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FE Report
Dhaka stocks' downslide continued for the third straight session Monday on seemingly sagging investor confidence amid continuing volatile trading.
Sell-off at Dhaka Stock Exchange (DSE) continued mainly in the sectors of banking, pharmaceuticals, energy and insurance and the market remained in the negative zone throughout the whole session.
The benchmark DSE General Index (DGEN) closed at 5,524.10 on the day, down by 35.99 points or 0.64 per cent after falling more than one per cent the previous day.
It hit the day's high at 5564.84 and the low at 5,505.07 in fluctuating trading throughout the session.
The broader All Shares Price Index (DSI) was down by 27.04 points or 0.59 per cent to stand at 4,528.42 while the DSE-20 blue chip index lost 40.30 points or 1.34 per cent to close at 2,948.43.
"Investors took no position anew after selling their holdings as they were still guessing about the market's direction," said a stockbroker requesting not to be named.
Some investors adopted a 'wait and see' policy until they receive any clear direction from the newly-elected executive body about the bourse's new course of action, he added.
The trading turnover continued to decline, as it stood at Tk 7.47 billion, down by three per cent from the previous session's Tk 7.73 billion with the decliners beating the gainers by a wide margin.
Out of 242 issues traded, 184 were in the red and 58 closed positive.
The banking sector, the bellwether of the DSE accounting for one-fourth of the market cap, slid to 1.14 per cent, the fifth consecutive loss.
Shahjalal Islami Bank posted the highest gain of only 0.48 per cent following its dividend declaration.
Telecommunications, which accounted for more than 20 per cent of the market capitalisation, continued to decline edging marginally down by 0.20 per cent.
Grameenphone, the sole listed company in the sector, closed at Tk 353.80 from Tk 354.50.
Mutual funds continued to suffer, as they went down by 2.85 per cent after the Securities and Exchange Commission halted trading of AIMS 1st Mutual Fund on the High Court's three-month stay order on rejection of bonus and rights offer by the fund.