Stocks plunged again yesterday after a two-day rising streak, pushing the turnover on the Dhaka Stock Exchange to a five-month low. Turnover dropped 22.37 percent to Tk 257.08 crore, the lowest since May 15. Most of the stock investors are fearing that the index may fall further, so they are reluctant to purchase stocks, which brought down the turnover, said a top official of a leading brokerage house. Most of the investors are trying to sell shares to keep liquid money in hand in anticipation of further fall of the index. “Such anticipation is contagious and drags the index down,” he added. DSEX, the benchmark index of the bourse, declined 19.35 points, or 0.40 percent, to finish at 4,752.64. It is frustrating that the index is declining even after the central bank took a number of steps to prop up the ailing stock market and listed companies announced dividends, said a merchant banker. Bangladesh Bank approved a revolving fund of Tk 856 crore for investing in stocks. It also announced loan facilities for banks to provide them with liquidity support to invest in stocks. At least 60 companies declared dividends and most of them announced higher dividends from a year earlier, according to data from the DSE. “Despite that, the market is sliding, and it is only because of investors’ confidence crisis,” the merchant banker added. The most negative contributors to the market yesterday were United Power Generation, Grameenphone, and Brac Bank. Of the traded issues, 132 advanced and 176 declined, while 42 securities closed unchanged on the premier bourse. Sonar Bangla Insurance dominated the turnover chart with its transaction of Tk 11.71 crore, followed by National Tubes, SK Trims, Square Pharmaceuticals and Beacon Pharmaceuticals. Alhaj Textile Mills was the day’s best performer with its 9.93 percent gain, while Anlima Yarn Dyeing was the worst loser, shedding 9.49 percent. Chattogram stocks also dropped, with the bourse’s benchmark index, CSCX, decreasing 42.67 points, or 0.48 percent, to finish the day at 8,789.83. Losers beat gainers as 76 advanced and 127 declined, while 33 finished unchanged on the Chittagong Stock Exchange. The port city bourse traded shares and mutual funds worth Tk 11.40 crore.
Source – The Daily Star.
