Dhaka stocks fall sharply on BB move against banks

April 30, 2014

Dhaka stocks declined sharply on Tuesday, third trading session in a row, as investors turned shaky apprehending further fall in the market following a Bangladesh Bank move against the banks which have increased their capital market investment beyond the allowable limit. The key index of the Dhaka Stock Exchange, DSEX, declined to 4,567.04 points, shedding 1.24 per cent or 57.71 points on the day.
According to market operators, investors, who are on the profit-booking move this week, increased share sell-offs on the day following a media report that the central bank has fined some banks for increasing their capital market investment limit violating rules.
The investors were apprehending that the market might decline further if the banks, which had crossed capital market investment limit, reduced their investment sharply to comply with BB rules, they said.
Despite investors’ shakiness, share prices of most of the traded multinational companies increased due to their recent corporate declarations, the operators said.
Bata Shoe gained the most on the day as its share prices increased by 6.24 per cent, while four other multinational companies — Linde Bangladesh, Berger Paints Bangladesh, Marico Bangladesh and Renata — were on the top gainers’ chart.
Of the 289 shares and mutual funds traded on Tuesday, 64 advanced, 202 declined and 23 remained unchanged.
‘Quarterly declaration centric trading pattern called for larger correction in today’s [Tuesday] market,’ IDLC Investments said in its daily market commentary.
‘Besides, depressed earnings growth empowered with recent waning tone unleashed panic sale pressure, curving out 58 points from the prime index,’ it said.
‘Meanwhile, buyers retreated, creating a vacuum in demand side,’ said IDLC.
DS30, the blue-chip index of the bourse, fell by 1.16 per cent, or 19.73 points, to close at 1,668.91 points on the day.
The shariah index of the bourse, DSES, finished flat at 1,012.35 points, shedding 0.46 per cent or 4.69 points.
Turnover of the DSE declined further to Tk 387.58 crore on the day after it was Tk 435.86 crore in the previous trading session.
Grameenphone led the turnover chart as its shares worth Tk 19.86 crore changed hands on the day.
Meghna Petroleum, Bangladesh Submarine Cable Company, Lafarge Surma Cement, Heidelberg Cement, Square Pharmaceuticals, Renata, Olympic Industries, Bata Shoe and Padma Oil were among other turnover leaders.
Delta Spinners lost the most on the day losing 39.93 per cent.

-With New Age input

Advertisement Area


Got something to say?

You must be logged in to post a comment.