Dhaka stocks down on dialogue uncertainty

October 31, 2013

Dhaka stocks declined on Wednesday after three sessions on the up as the investors opted to sell shares amid uncertainty over a consensus between the ruling party and the opposition.
The benchmark general index of Dhaka Stock Exchange, DSEX, slid to 3,946.01 points, shedding 1.08 per cent, or 43.12 points. DS30, the blue-chip index of the DSE, eased 0.15 per cent, or 2.19 points, to finish at 1,402.24 points on the day.
The DSEX and DS30 had gained 189.87 points and 43.40 points respectively in the three previous trading sessions.
Of the 280 shares and mutual funds traded on the day, 124 advanced, 125 declined and 31 remained unchanged.
Uncertainty over the expected dialogue between the prime minister and the leader of the opposition was the main reason behind Wednesday’s fall, said market operators.
Fall in shares prices of the banks was another reason behind the negative finish as the sector lost 3.44 per cent with 26 issues declining, two gaining and two remaining unchanged.
A natural correction in the banks’ shares is culpable as the sector had gained around 8 per cent in the last three trading sessions, the operators observed.
A political consensus over the polls-time government might ease the political crisis and have a positive impact on the market, they added.
‘Tri-session long streak broke today as quarterly declarations and political vibes shook market sentiment,’ IDLC Investments said in its daily market commentary.
‘Poor quarterly declarations, especially in heavyweight Bank sector sparked disappointments amid investors, and thus accelerated the downward roll. Consequently, six scrips of this sector emerged at the top ten losers list,’ IDLC said.
‘Meanwhile, turnover also trailed back to Tk 384.33 crore, as investors remained meticulous and opted to stay watchful over the changing turnaround phenomenon. Apparently, today’s session can best be termed as a precautionary movement by investors,’ it also said.
The turnover of the bourse declined to Tk 384.33 crore from the previous session’s Tk 391.57 crore.
Generation Next Fashions led the turnover chart on the day as its shares worth Tk 28.15 crore changed hands.
Bangladesh Submarine Cable Company, Argon Denims, UCB, Summit Purbanchol Power Company, Malek Spinning, Envoy Textile Mills, United Airways, BEXIMCO and Takaful Insurance were the day’s other turnover leaders.
Bangladesh Building Systems gained the most as the price of its shares increased by 9.64 per cent, while One Bank lost the most, 9.93 per cent.

-With New Age input

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