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DSE key index tumbles to two-month low

Sena Kalyan Insurance makes stellar debut


FE REPORT | November 08, 2021 00:00:00


Stocks tumbled on Sunday, after a single-day break and the prime index of Dhaka Stock Exchange (DSE) dropped to more than two months low amid late hours selling binge on major sector shares.

The market opened on a positive note and the key index rose about 44 points within the first 30 minutes of trading. But failed to sustain that level amid heavy sell-offs by shaky investors in the later part of the session.

Finally, DSEX, the prime index of the DSE, went down by 50.84 points or 0.73 per cent to settle at 6,855, which is the lowest in more than two months since August 29.

Meanwhile, Sena Kalyan Insurance made a flying trading debut on Sunday as its share price soared by 10 per cent, the highest allowable limit on debut day.

The general insurer's share price closed at Tk 11 each on the DSE. Some 24 trades with 410 shares were traded on the DSE floor.

The company's trading was halted at one point as investors rushed to buy its shares, but no sellers were seen on the trading board.

The general insurer has reported Tk 82.84 million in net profit in the January-September period of this year. During the period, the company's earnings per share (EPS) stood at Tk 3.45 while it would be Tk 2.07, considering post-IPO paid-up shares.

Analysts said the market remained under sale pressure as cautious investors continued to cash in on stocks while institutional investors did not exhibit much exuberance amid ongoing volatility.

Many investors remained on the sidelines amid lack of clear market direction while the on-going countrywide transport strike prompted them to sell shares, fearing further fall, they said.

"The ongoing country-wide transport strike kept investors worried as they feared that export-oriented companies may face supply chain disruption," commented EBL Securities.

As a result, many investors remained on the sidelines amid a lack of market direction, said the stockbroker.

Two other indices also ended lower with the DSE 30 Index, comprising blue chips, falling 2.31 points to finish at 2,598 and the DSE Shariah Index (DSES) plunged 17.86 points to close at 1,444.

Turnover, a crucial indicator of the market, stood at Tk 11.45 billion, which was 7.20 per cent higher than the previous day's six months lowest turnover of Tk 10.68 billion.

Top ten traded stocks captured around 50 per cent turnover where Beximco alone captured 19.5 per cent of total trade.

Stocks slumped into the red after a single-session break as the investors opted for booking quick gains on the sector specific stocks, said a leading broker.

Top negative index contributors were LafargeHolcim, Investment Corporation of Bangladesh, Beximco Pharma, Robi and United Power. These five stocks jointly contributed 31 points fall of DSEX, according to amarstock.com.

Most of the sectors suffered losses with cement saw the highest correction of 4.10 per cent, textile with 1.50 per cent, power 0.90 per cent, pharma 0.80 per cent, engineering 0.60 per cent, telecom 0.20 per cent and banking 0.10 per cent.

More than 80 per cent traded issues lost their price, as out of 377 issues traded, 303 ended lower, 49 closed higher and 25 remained unchanged on the DSE trading floor.

Beximco was the most traded stock with shares worth Tk 2.22 billion changing hands, followed by NRB Commercial Bank (Tk 835 million), Alif Manufacturing Company (Tk 441 million), Fortune Shoes (Tk 359 million) and Orion Pharma (Tk 346 million).

Sena Kalyan Insurance, which made trading debut Sunday, was the day's top gainer, rising 10 per cent while Tung Hai Knitting & Dyeing was the worst lower, losing 8.06 per cent.

The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index - CASPI -plunging 119 points to settle at 20,078 and the Selective Categories Index - CSCX-- shedding 70 points to close at 12,061.

Of the issues traded, 207 declined, 64 advanced and 17 remained unchanged on the CSE.

The port-city bourse traded 9.49 million shares and mutual fund units with a turnover value of Tk 271 million.

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