Stocks fall for second day on Nizami verdict, GP profit drop

October 30, 2014

Dhaka stocks declined for the second trading session on Wednesday amid investors’ increased share selling as they were apprehending violent agitation by the Jamaat following a court verdict on Jamaat chief Matiur Rahman Nizami on war crimes charges.
On the other hand, decline in quarterly earning of Grameenphone, a multinational company, also prompted investors to sell shares of other multinational companies which were among other reasons behind the negative ending on the day, market operators said.
Grameenphone’s earning per share declined to Tk 3.96 in July to September period compared with that of Tk 4.25 in the same period of previous year.
The International Crimes Tribunal -1 on Wednesday awarded capital punishment for the Jamaat chief Nizami on war crimes charges.
The key index of Dhaka Stock Exchange, DSEX, declined to 5,109.42 points, shedding 0.37 per cent or 19.41 points.
Despite a positive start, the market finished negative amid investors’ increased share selling as they were apprehending political violence following the ICT verdict on Jamaat leader Nizami, market operators said.
Jamaat men went for violent agitations after almost all the previous verdicts against other Jamaat leaders on war crimes charges, they said.
After the court verdict on the day, Jamaat called three days of strike in protest against Nizami’s death sentence.
Investors continued to take some profit off the table amid mixed corporate earnings declaration.
Fear of political turbulence after the verdict on Nizami’s war crime charges might have made the investors shaky, market operators said.
DS30, blue-chip index of DSE, fell by 0.73 per cent or 14.21 points, to close at 1,919.32 points on the day.
The Shariah index of the bourse, DSES, finished flat at 1,202.84 points, shedding 0.33 per cent or 4.02 points.
Turnover of the bourse, however, increased to Tk 545.68 crore on Wednesday compared with that of Tk 462.59 crore in the previous trading session.
Of the 305 shares and mutual funds traded on the day, 169 advanced, 104 declined and 32 remained unchanged.
‘Market survived above 5,100.0 points level despite investors’ weak confidence and low flow of funds,’ IDLC Investments said in its daily market commentary.
‘Following the third quarter earnings and year-end corporate disclosures, investors continued to re-balance their portfolio position,’ it said.
Summit Purbanchol Power Company led the turnover chart on the day as its shares worth Tk 27.71 crore changed hands.
Grameenphone, Khulna Power Compnay, MJL Bangladesh, Summit Power, ACI Limited, Square Pharmaceuticals, Olympic Industries and Titas Gas were among other turnover leaders.
Alltex Industries gained the most on the day as its share prices rose by 85.71 per cent, while Popular Life Insurance Company lost the most shedding 21.46 per cent.

-With New Age input

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