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DSEX slumps below 5,800-mark

FE REPORT | January 26, 2021 00:00:00

Stocks extended the losing streak on Monday, with the key index of the major bourse dipping below 5,800-mark after seven days, as cautious investors continued profit booking on sector-wise issues.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 25.61 points or 0.44 per cent to settle at 5,789. DSEX lost roughly 46 points in the past two straight sessions.

Two other indices also edged lower. The DSE 30 Index comprising blue chips fell 8.17 points to finish at 2,202 and the DSE Shariah Index (DSES) shed 0.41 point to close at 1,296.

Market operators said price fall from large-cap sector stocks like telecommunication, banking and non-bank financial institutions contributed in the index fall.

Top negative index contributors of the market were Robi Axiata, Beximco Pharma, Grameenphone, LafargeHolcim and The City Bank, according to data from amarstock.com, a stock market data analyst.

The market gradually lost its vibrancy as the time of readjusting the interest rate cap imposed by the securities regulator on margin loans provided by stockbrokers and merchant bankers to investors is approaching near, commented International Leasing Securities.

The stockbroker noted that many brokerage houses are insisting their clients to adjust the loan as they are unable to provide the loan at such low rate due to their high cost of fund.

Recently the stock market regulator fixed the highest interest rate at 12 per cent on margin loan disbursed against listed securities with the highest spread on the cost of margin loans at 3.0 per cent.

Turnover, a crucial indicator of the market, rose to Tk 15.85 billion on the country's premier bourse, rising further by 8.7 per cent over the previous day's mark of Tk 14.58 billion.

Among the major sectors -cement saw the highest correction, losing 3.30 per cent, followed by telecom with 2.10 per cent, financial institution 2.10 per cent and banking 1.10 per cent.

On the other hand, food and allied, pharmaceuticals and power sectors gained 0.90 per cent, 0.60 per cent and 0.30 per cent respectively.

Losers took a strong lead over the gainers, as out of 359 issues traded, 202 declined, 76 advanced and 81 remained unchanged on the DSE trading floor.

Beximco topped the turnover chart with 35.94 million shares worth Tk 3.303 billion changing hands, capturing nearly 21 per cent of the day's total turnover on DSE riding on higher earnings news.

Beximco has reported 255 per cent higher earnings per share (EPS) to Tk 1.92 in the first half of fiscal 2020-21, thanks to an increase in the export of personal protective equipment (PPE) and face mask.

Other turnover leaders were Beximco Pharma, Square Pharma, Robi Axiata and LankaBangla Finance.

Debutant Energypac Power Generation was the day's best performer, posting a gain of 9.97 per cent while C&A Textile was the worst loser, losing 9.09 per cent.

A total number of 206,182 trades were executed in the day's trading session with a trading volume of 364.17 million shares and mutual fund units.

Market-cap of the DSE stood at Tk 4,853 billion on Monday, down from Tk 4,882 billion in the previous day.

The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index - CASPI -losing by 108 points to settle at 16,878 and the Selective Categories Index - CSCX shedding 65 points to close at 10,188.

Of the issues traded, 146 declined, 64 advanced and 48 remained unchanged on the CSE.

The port city's bourse traded 13.79 million shares and mutual fund units with turnover value of Tk 524 million.

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