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Stocks plunge after single-day break

FE Online Report | Published: October 16, 2019 15:54:39 | Updated: October 18, 2019 10:34:42


Stocks failed to maintain the momentum of the previous day that saw sharp rise, which suggests retail investors remain unconvinced by government moves to support the moribund market.

Market analysts said general investors remain unconvinced by ICB’s announcement to provide support to the flagging market, so despite a jump of 110 points on Tuesday most of them washed off their portfolio.

On Monday, the Investment Corporation of Bangladesh (ICB) declared that it would start buying shares with Tk 2.0 billion it has at present and with another Tk 8.0 billion that it will get from four state-run banks through issuing bonds.

The investors’ confidence got a battering, which triggered sell-off again amid the depressed market outlook, said a leading broker.

The market opened on negative note and the downward trend continued until end of the session with no sign of reversal.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 4781, losing 40.01 points or 0.82 per cent after gaining 110 points in the previous day.

Two other indices also ended lower. The DS30 index, comprising blue chips, lost 18.65 points to finish at 1,685 and the DSE Shariah Index shed 9.92 points to close at 1,099.

Turnover, a crucial indicator of the market, also fell to Tk 3.24 billion, which was 1.22 per cent lower than the previous day’s turnover of Tk 3.28 billion.

Losers took a strong lead over the gainers as out of 354 issues traded, 259 closed lower, 65 ended higher and 30 remained unchanged on the DSE trading floor.

A total number of 98,321 trades were executed in the day’s trading session with trading volume of 94.78 million shares and mutual fund units.

The market-cap of the DSE also fell to Tk 3,608 billion on Wednesday, from Tk 3,635 billion in the previous session.

Bangladesh Shipping Corporation topped the turnover chart with shares worth Tk 214 million changing hands, followed by National Tubes, Summit Power, Grameenphone and Standard Ceramic.

Popular Life Insurance was the day’s best performer, posting a gain of 8.55 per cent while Khan Brothers PP Woven Bag Industries was the worst loser, plunging by 8.79 per cent.

The port city’s bourse, the Chittagong Stock Exchange, also ended lower with its All Shares Price Index (CASPI)—losing 91 points to close at 14,555 and the Selective Categories Index - CSCX –shedding 54 points to finish at 8845.

Here too, losers beat gainers as 159 issues closed lower, 59 ended higher and 29 remained unchanged on the CSE.

The port city bourse traded 5.89 million shares and mutual fund units worth Tk 155 million in turnover.

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