FE Report
Stock extended their bearish spell for the four consecutive sessions Monday with prime index of the major bourse dipping below 4,500-mark after eight months as deepening political strife continued to hurt investors.
Meanwhile, a group of investors under the banner of Bangladesh Capital Market Investors' Unity formed a human chain in front of the Dhaka Stock Exchange (DSE) building in protest against continuous fall of share prices.
They also placed 19-point charter of demands to the Bangladesh Securities & Exchange Commission (BSEC), including increasing the banks' investments ceiling in stocks to bring back stability in the capital market.
The market opened with a downturn which sustained throughout the session as most investors were on selling mood in fear of further share price fall.
At the end of the session, DSEX, the prime index of the DSE dipped below the 'psychological' threshold of 4,500-mark again and ended at 4,477.99 points, shedding 58.39 points or 1.28 per cent.
The two other indices also saw steep decline. The DS30 index, comprising blue chips lost 17.89 points or 1.04 per cent to close at 1,691.50 points. The DSE Shariah Index (DSES) shed 13.89 points or 1.25 per cent to close at 1,090.99 points.
Strong selling pressure helped trading activities edge higher and amounted to Tk 2.90 billion, registering an increase of 14.62 per cent over the previous session's value of Tk 2.53 billion.
The investors' attention was mostly focused on power, pharma and engineering - the sectors that accounted for 17.4 per cent, 14.6 per cent and 14.5 per cent of the day's total turnover respectively.
"Investors' pessimistic sentiment about the stock market accelerated as the depressed political scenario exhibits no sign of recovery," said International Leasing Securities, in its daily market analysis.
The morning sell pressure, driven by panicky sentiment sustained till the end of the session, said the International Leasing.
LankaBangla Securities said: "Index is hitting its lower low on lack of confidence among the market makers and broke its nearest support level by breaching 'psychological' level of 4,500-mark".
Bank, cement and other major large-cap sectors dragged the market down. Banking sector declined by 1.86 per cent while cement, power and textile sector decreased by 3.6 per cent, 2.38 per cent and 1.33 per cent respectively.
However, few multinational companies and cash cow stocks remained secured from the market hit as investors found those stocks worth buying, said the stock broker.
IDLC Investments said: "The market wiped out last eight months' gain in the recent downtrend, while lost another 58 points from DESX".
Sell pressure was observed in most of the issues irrespective of sector or cap class, with exception to few multinational companies stocks like Reckitt Benckiser, GP, Berger Paints as some investors attempt to park money in them, said the merchant bank.
Among the large-cap sectors, telecommunication registered a noteworthy gain of 2.69 per cent. Food and allied sector also advanced 0.55 per cent.
All the other major sectors closed lower. Cement retraced by a hefty 3.60 per cent. Power went down by 2.38 per cent. In the financial sectors - both banks and NBFIs closed lower by 1.86 per cent and 2.34 per cent respectively. Pharmaceuticals lost 0.43 per cent.
The losers took a strong lead over the gainers as out of 306 issues traded, 229 declined and 53 advanced while 24 remained unchanged on the DSE floor.
Activities increased in the major bourse where volume and trade were up by 17.07 per cent and 15.33 per cent respectively. A total number of 0.082 million trades were executed with trading volume of 61.29 million securities.
The market capitalisation on DSE stood at Tk 3,123.30 billion against Tk 3,141.32 billion in the previous session.
GP was the day's top turnover chart with shares worth Tk 247.54 million changing hands followed by SPCL, IFAD Autos, Summit Alliance Port and ACI.
Reckitt Benckiser was the day's top gainer, posting a rise of 5.73 per cent while Singer BD was the worst loser, plunging by 20.36 per cent following its price adjustment after record date.
The port city bourse, Chittagong Stock Exchange (CSE) also saw steep decline with its Selective Categories Index - CSCX - lost 73.5 points to close at 8,311.84 points.
Losers beat gainers 166 to 45, with 20 issues remaining unchanged at the port city bourse that traded 6.41 million shares and mutual fund units, turnover value of Tk 226.36 million.
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