Dhaka stocks declined for the second trading session on Monday as the turnover of the Dhaka Stock Exchange fell short of Tk 300 crore after 32 trading sessions with the investors apprehending unrest on the political front. The turnover of the DSE declined to Tk 271.99 crore on the day from the previous session’s Tk 332.16 crore. Monday’s turnover was the lowest after Tk 162.29 crore recorded on August 12. The benchmark general index of the bourse, DSEX, lost 0.78 per cent, or 31.10 points, to close at 3,937.68 points, the lowest since August 13 when the index finished at 3,979.35 points. DS30, the blue-chip index of the DSE, lost 0.57 per cent, or 8.26 points, to finish at 1,440.52 points. The DSEX and DS30 have now lost 200.25 points and 82.76 points respectively in the last ten trading sessions.
Market operators said the investors had opted for the ‘wait-and-see’ strategy as fear of further political unrest gripped them. This was the main reason behind the market’s sluggish trend, they said. On the other hand, the International Crimes Tribunal would deliver its verdict on charges against BNP leader Salauddin Quader Chowdhury today, which also made the investors worried, they added.

The recent steps taken by the Bangladesh Securities and Exchange Commission and Dhaka Stock Exchange to investigate unusual price hike in small capitalised companies’ shares was another reason behind the gamblers’ inactivity on the trading floor, which pulled down the bourse’s turnover, a senior merchant banker said. A section of retail investors went for sell-offs to make some profits ahead of the Eid-ul-Azha, which was another reason behind the decline in shares prices, he added. ‘Fear of potential turmoil in political frontier knocked investors’ sentiment very negatively during today’s [Monday] session,’ IDLC Investments said in its daily market commentary.

‘Seemingly, investors were neutralizing quick return especially, in most of the micro capitalised scrips ahead of Eid-Ul-Adha,’ it also said. Of the 289 shares and mutual funds traded on the day, 57 advanced, 215 declined and 17 remained unchanged.

Square Pharmaceuticals led the turnover chart as its shares worth Tk 20.61 crore changed hands while Bangladesh Submarine Cable Company, Argon Denims, CMC Kamal, Grameenphone, Continental Insurance, RN Spinning, Padma Oil, Bangladesh Shipping Corporation and United Airways were among the day’s other turnover leaders. Rahima Food gained the most on the day as the price of its shares increased by 9.86 per cent while Modern Dyeing and Screen Printing lost the most, 9.99 per cent.  

Source :: New Age