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Stocks drop in post-Eid first session

Textile sector issues attract investors most

FE REPORT | July 13, 2022 12:00:00

Stocks dropped marginally Tuesday, the first day after Eid holidays, as investors were mostly cautious amid growing macroeconomic worries.

The market opened on a positive note and the key index rose about 19 points within the first 10 minutes of the trading. But, the rest of the session went down steadily, ultimately ending over 11 points lower.

DSEX, the key index of the Dhaka Stock Exchange (DSE), went down by 11.47 points to settle at 6,355, after closing almost flat in the last session before Eid holidays.

The participation of investors was thin on the trading floor as most of the investors are yet to return to Dhaka after celebrating Eid in their village home. Some investors traded over mobile phones.

Turnover, the crucial indicator of the market, dropped to Tk 6.79 billion, which was 14 per cent lower than the previous day's tally of Tk 7.88 billion.

The investors' activities were mostly focused on the textile sector, capturing 23.4 per cent of the day's total turnover.

Textile issues attracted the investors most as 45 issues of the sector closed higher, 10 lower and three remained unchanged, out of 58 textile issues.

The textile sector also posted the highest gain of 2.0 per cent as seven issues from the sector featured in the day's top 10 gainers' list.

Nurani Dyeing posted the highest gain among the textile sector issues, rising 9.59 per cent, followed by Zahintex Industries (7.69 per cent), Saihan Textile (7.62 per cent), Safko Spinning (7.62 per cent), Regent Textile (6.25 per cent), Evince Textile (6.18 per cent) and ML Dyeing (5.76 per cent).

The record exports news in the just concluded fiscal year might have prompted investors to put fresh funds on textile issues, said a merchant banker.

Exports from Bangladesh hit an all-time high of $52.08 billion in the just-concluded fiscal year where apparel shipment accounts for about 85 per cent exports earnings.

"Textile stocks got investors' attention as exports soared and the investors expect higher dividend this year as the textile companies year-end ended in June," he said.

Meanwhile, the ongoing bearish sentiment made investors cautious while the news of deepening energy crisis kept investors worried, market insiders said.

Stocks ended in the red trajectory as investors resumed with bearish sentiment after Eid holidays and engaged in sell-off across the bourse, said EBL Securities.

International Leasing Securities said the risk-averse investors followed 'wait-and-see' approach due to the lack of the clear direction as the ongoing economic turmoil fueled by the rising price of natural gas created confidence crisis among investors.

Two other indices dropped. The DS30 Index, which consists of the blue-chip companies, fell 9.62 points to close at 2,284 and the DSES Index, which represents Shariah-based companies, shed 2.26 points to finish at 1,385.

Most sectors suffered losses with cement losing 1.10 per cent, followed by general insurance with 1.10 per cent, telecom 0.50 per cent, food 0.20 per cent and power 0.20 per cent.

Losers took a modest lead over the gainers as out of 381 issues traded, 209 declined, 128 advanced and 44 remained unchanged on the DSE trading floor.

IPDC Finance was the most-traded stock with shares worth Tk 631 million changing hands, followed by Beximco, Fortune Shoes, Intraco Refueling Station and Titas Gas.

Golden Son was the top gainer, posting a 9.77 per cent gain while Janata Insurance was the day's worst loser, losing 6.59 per cent following its price adjustment after record date.

The Chittagong Stock Exchange (CSE) also closed lower with the CSE All Share Price Index - CASPI -losing 64 points to settle at 18,687 and the Selective Categories Index - CSCX -shedding 40 points to close at 11,198.

Of the issues traded, 151 declined, 92 advanced and 28 issues remained unchanged on the CSE.

The port city's bourse traded 6.80 million shares and mutual fund units with turnover value worth Tk 196 million.

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