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Stocks tumble for 3rd straight day

WT24 Desk

Stocks tumbled for the third straight day on Monday in absence of fresh fund injection while selling of shares for cash dragged the indices further down, BSS reports.  The broader index at the Dhaka Stock Exchange (DSE) sank into the red at the last week’s close that extended this week in the past two trading sessions. “Market is following industry specific fundamentals and economic cues. Investors are watching market triggers closely before setting next trade”, said Lanka Bangla Securities Limited (LBSL).

The DSEX lost 15.79 points to close the session at 4768.01 when the blue-chip DS30 and the Shariah DSES followed the broader index to finish at 1827.92 and 1173.81 respectively. Slide in the market capitalisation of telecom, textile and construction stocks dragged the indices. Financial stocks, however, supported the market at the beginning, taking the index to 4825.50, but the morning vibe evaporated with increasing sale pressures that started mounting from the mid of the session.

The sale pressures pushed the transaction value up by 14.45 percent to Taka 610 crore and volume by 20.29 percent to 15.81 crore shares, but majority of the securities finished lower as demand side remained subdued. Shares of 158 securities went down when only 112 gained among the day’s 318 issues traded.  Apex Tannery, Apex Food, IFIC, Purabi General Insurance and the Northern Jute were the top five advancing issues when most of the banking stocks were also up on the news of declining non-performing loans (NPL).

The news about 4.0 percent drops of NPLs was considered a positive development when many investors took position in the banking stocks. Non-banking issues also advanced moderately. But, the higher fall in sectors, including in cement, fuel and power, telecom and textile brought the market down at the end of the session. The session’s major losing issues were Jute Spinning, Exim 1stMF, Rahima Food, Orion Infusion and Bengal Plastic.

Islami Bank topped the turnover list as Dubai Islamic Bank, one of the corporate sponsors of the Bank, expressed intention of selling huge number of shares through stock exchange within next 30 working days, said market insider.  The other most liquid securities were RSRM Steel, SPCL, APEX Tannery, UPGDCL and Square Pharmaceuticals.
Chittagong Stock Exchange (CSE) continued to witness the bearish trend as its major CSCX index lost over 57 points to close at 8915.16 on Monday.

On the day, 137 securities closed lower against 82 gaining issues when the daily trade value was Taka 48.04 crore for 1.31 crore shares.

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