Stocks end in the red again
The stock market returned to its falling trend again yesterday due to a confidence crisis among investors.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), fell 70 points, or 0.99 per cent, to 7,005.
Market analysts are saying that investors had become frightened with the continuous fall last week, so they sold shares.
Though availing profits is a common phenomenon of the stock market, the recent fall was steep and continuous so it made investor fearful, said a merchant banker.
Investors need to be cautious in this situation because a wrong decision here can damage their investment, he said. If investors invest in good stocks, they have no reason to panic, the merchant banker added.
Turnover, an important indicator of the stock market, rose to Tk 1,471 crore up from Tk 1,310 crore.
The Dhaka stocks went back to the red amidst volatility after a single session’s break as investors mostly adopted a cautious stance and booked some quick gains, said International Leasing Securities Limited in its daily market review.
Following last session’s upward move, the market started on a positive note but shaky investors’ sell-offs in the major sectors to avoid further erosion of their portfolios has caused the benchmark index to lose 71 points, it said.
Meanwhile, some investors continued restructuring their portfolios to take up fundamentally-sound stocks based on ongoing year-end earnings and dividend declarations and quarter-end corporate disclosures, it added.
At the DSE, 57 stocks advanced, 292 declined and 26 remained unchanged.
Aramit Cement Limited topped the gainers’ list, rising 9.82 per cent, followed by Beach Hatchery Limited, Beximco Ltd, Zeal Bangla Sugar Mills Limited and BSRM Ltd.
Stocks of Beximco Ltd were traded the most, worth Tk 342 crore, followed by Orion Pharma Limited, Delta Life Insurance Company Limited, NRB Commercial Bank Limited and Genex Infosys Limited.
FAS Finance and Investment Limited shed the most, dropping 10.6 per cent, followed by Bangladesh Building Systems Limited, Active Fine Chemicals Limited, Aziz Pipes limited and Deshbandhu Polymer Limited.
Due to the fall of Grameenphone Limited, Square Pharmaceuticals Limited, Robi Axiata Limited, Walton and LafargeHolcim Bangladesh Limited, the benchmark index of the DSE dropped 38 points, according to amarstock.com.
Among the major sectors, ceramics and tannery experienced a price appreciation while services and real estate, cement and textile faced correction, according to UCB Stock Brokerage Limited’s daily market review.
The Chattogram bourse also fell yesterday. The CASPI, the main index of the Chittagong Stock Exchange (CSE), dropped 122 points, or 0.59 per cent, to 20,570.
Among 288 stocks to undergo trade, 62 rose, 205 fell and 21 remained unchanged.