Dhaka stocks slip into red to snap five-day gaining spree

Most low-cap shares on bourse watch list still rise

FE Team | Published: August 27, 2018 21:31:20

FE Report
Share prices of the majority of low-cap companies, which are under the Dhaka bourse's scanners, continued to rise on Monday without any price sensitive information (PSI).
A total of 15 low-profile companies, which failed to declare dividends for the last five years, are now under the scanners of the Dhaka Stock Exchange (DSE).
Of them, share prices of 11 companies rose highest 10 per cent while two companies saw their share prices fall and the prices of two others remained unchanged.
Share prices of Dulamia Cotton soared 10 per cent, Jute Spinners 9.88 per cent, Samata Leather 9.83 per cent, Savar Refractories 9.81 per cent, Kay & Que 9.43 per cent, Meghna Pet 9.15 per cent, Imam Button 8.76 per cent, Meghna Condensed Milk 6.62 per cent, Sonargaon Textile 6.29 per cent, Shinepukur Ceramic 1.10 per cent and Shyampur Sugar Mills 1.08 per cent.
Analysts said that even under the DSE's watchful eye, the prices of these companies had not stopped rising and it might cause the investors to incur heavy losses.
Recently, the DSE delisted two companies-Rahima Food Corporation and Modern Dyeing and Screen Printing-for remaining closed for three years.
Dhaka stocks slipped into the red on Monday, snapping a five-day gaining streak, as risk-averse investors opted to book some profits.
The market opened on a positive note and the key index of the prime bourse crossed the 5,600-mark in early trading. However, it failed to sustain that level amid selling pressure in the late hours.
Finally, DSEX, the prime index of the DSE, settled at 5,585, losing 11.94 points or 0.21 per cent, after adding 218 points in the past five consecutive sessions.
According to the International Leasing Securities, the investors were in the profit booking mood almost throughout the session, except some enthusiastic investors who tried to reverse the market momentum in the middle.
The stockbroker noted that the investors mainly reshuffled their portfolio covering December closing stocks to June closing stocks anticipating better return from the year-end dividend declarations.
Two other indices of the DSE, however, edged higher. The DS30 index, comprising blue chips, advanced 3.10 points to close at 1,964 and the DSE Shariah Index saw a fractional gain of 0.54 points to close at 1,272.
Turnover, the most important indicator of the market, rose to Tk 5.32 billion, which was nearly 27 per cent higher than the previous session's Tk 4.20 billion.
A total of 127,461 trades were executed in the day's trading session with the trading volume standing at 160.98 million securities.
The market capitalisation of the DSE rose to Tk 3,944 billion on the day from Tk 3,940 billion of the previous day.
Among the major sectors, banks posted 1.50 per cent correction, followed by non-bank financial institutions with 0.70 per cent.
Telecommunication stocks witnessed the highest gain of 1.40 per cent, followed by power with 0.80 per cent and engineering 0.70 per cent.
Of the 334 issues traded, 155 declined, 145 advanced and 34 issues remained unchanged on the DSE trading floor.
Beximco topped the DSE turnover chart with shares worth Tk 320 million changing hands.
It was closely followed by Active Fine Chemicals, United Power, BBS Cables and LankaBangla Finance.
KDS Accessories was the day's best performer, posting a gain of 9.96 per cent while Zeal Bangla Sugar Mills was the worst performer, losing 5.34 per cent.
However, the port city bourse CSE closed slightly higher with its CSE All Share Price Index-CASPI-advancing 3.15 points to settle at 17,213. The Selective Categories Index-CSCX-gained 0.07 points to close at 10,422 points.
The gainers beat losers as 121 issues closed higher, 99 lower and 25 remained unchanged on the CSE.
The port city bourse traded 9.41 million shares and mutual fund units worth more than Tk 256 million in turnover.
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