DSEX dips to more than one-month low
FE Report | Monday, 2 September 2019
Stocks witnessed yet another bearish session on Sunday, extending the losing streak for the third straight day, as cautious investors continued their selling binge on large-cap stocks.
DSEX, prime index of Dhaka Stock Exchange (DSE), went down by 25.09 points or 0.49 per cent to settle at more than one-month low at 5,070.
Market analysts said the telecom regulator's strict stance towards Grameenphone (GP) coupled with soaring non-performing loans in the banking sector continued to hit investors' sentiment.
GP, the largest market capitalisation issue, fell 0.64 per cent further, contributing 4.33 points index fall on Sunday.
The GP share traded between Tk 309 and Tk 314.90 on Sunday, before closing at one-year low at Tk 310 each.
Bangladesh Telecommunication Regulatory Commission (BTRC) recently has threatened to cancel the licence of the largest listed company over unpaid audit claims.
He noted that soaring non-performing loan also hit bank stocks hard as the heavyweight sector also lost 0.46 per cent.
"Lack of investors' confidence in the market triggered further sell pressure," said Sheltech Brokerage, in its regular market analysis.
Two other indices also finished lower. The DS30 index, comprising blue chips, fell 8.62 points to finish at 1,791 and the DSE Shariah Index lost 5.07 points to close at Tk 1,178.
Turnover, a crucial indicator of the market, also fell to 10-session low and amounted to Tk 3.32 billion, which was 17.5 per cent lower than the previous day's Tk 4.03 billion.
International Leasing Securities said issues from most of the large-cap sectors saw notable selling pressure, particularly from telecom, bank, power, textile and engineering sectors stock, taking the market in the negative territory.
The port city's bourse, the Chittagong Stock Exchange, also closed lower with its All Shares Price Index (CAPSI) -- CASPI-- losing 80 points to close at 15,500 and the Selective Categories Index - CSCX - falling 46 points to finish at 9,410.
Here too, losers beat the gainers as 136 issues closed lower, 58 higher and 36 remained unchanged on the CSE.
The port city bourse traded 4.43 million shares and mutual fund units worth more than Tk 134 million in turnover.