Stocks extend losses as GP shares plunge further

Stocks extended the losing streak for the fifth straight session on Tuesday as worried investors continued their selling binge on large-cap shares.

DSEX, prime index of Dhaka Stock Exchange (DSE), went down by 26.48 points or 0.52 per cent to close at 5,007.

The market opened on negative note and the key index dipped below 'psychological' threshold of 5,000-mark in the mid-session, before closing slightly above 5,000.

DSEX eroded nearly 172 points or 3.32 per cent in the past five straight sessions.

Market analysts said lack of investors' confidence, telecom regulator's strict stance towards Grameenphone, soaring non-performing loans and falling foreign portfolio investment continued to hit investors' sentiment.

GP, the largest market capitalisation issue, plunged further by 3.09 per cent, contributing more than 20 points DSEX fall, said a leading broker.

The GP share traded between Tk 290.40 and Tk 304.10 on Tuesday, before closing at Tk 294.80 each.

The GP share price plunged 30 per cent in the past five months due to tussle between telecom regulator and GP over claims of unpaid dues of heavyweight GP that led the selling pressure by investors.

Bangladesh Telecommunication Regulatory Commission (BTRC) also 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 0.68 per cent.

United Power, BATBC, BRAC Bank and Bank Asia also major contributors on Tuesday's index fall, he mentioned.

Falling foreign portfolio investment in the country's capital market also eroded local investors' confidence to put fresh fund on stocks, said the broker.

Two other indices also ended lower. The DS30 index, comprising blue chips, fell 15.88 points to finish at 1,759 and the DSE Shariah Index lost 5.25 points to close at Tk 1,167.

Turnover, a crucial indicator of the market, also fell to Tk 3.94 billion, which was 11 per cent lower than the previous day's Tk 4.43 billion.

International Leasing Securities said stocks witnessed another downbeat session amid confidence crisis among the investors from a tussle between GP and the telecom regulator over unpaid dues.

The stockbroker noted that the panicked investors liquidated their holding of shares from most of the sectors in anticipation of further fall.

Telecom, power, bank, financial institutions and food sectors stocks observed liquidation, said the stockbroker.

The telecommunication sector witnessed the highest loss of 2.98 per cent, followed by power with 1.03 per cent, food 0.97 per cent, banking 0.68 per cent and financial institutions 0.27 per cent.

Only the pharmaceuticals gained 0.25 per cent.

A total number of 124,021 trades were executed in the day's trading session with trading volume of 90.77 million shares and mutual fund units.

The market-cap of the DSE also fell to Tk 3,743 billion on Tuesday, from Tk 3,768 billion in the previous session.

Losers took a strong lead over the gainers as out of 339 issues traded, 169 closed lower, 109 ended higher and 61 remained unchanged on the DSE trading floor.

Monno Ceramic Industries topped the turnover chart for the third straight session with shares worth Tk 279 million changing hands, followed by Monno Jute Stafflers, Stylecraft, United Power and Grameenphone.

Desh Garment was the day's best performer, posting a gain of 9.08 per cent while Imam Button Industries was the day's worst loser, plunging by 9.45 per cent.

The port city's bourse, the Chittagong Stock Exchange, also closed lower with its All Shares Price Index (CASPI) -- CASPI-- losing 110 points to close at 15,302 and the Selective Categories Index - CSCX - shedding 65 points to finish at 9,289.

Here too, losers beat the gainers as 130 issues closed lower, 69 higher and 37 remained unchanged on the CSE.

The port city bourse traded 5.61 million shares and mutual fund units worth nearly Tk 160 million in turnover.

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