Stocks snap winning streak, turnover declines 31%

Dhaka (Nov 18, 2020): Dhaka stocks closed lower on profit-booking, ending its two consecutive session winning streak.

The benchmark index started the day on a positive note, gaining more than 10 points to touch its intraday high of 4,917. It, however, lost ground later in the day, marking its intraday low at 4,877. At the end of the day, the DSEX lost by almost 18 points or 0.37 percent to 4,887.

Among other indices, DSES Index was slightly down by 0.39 points or 0.03 percent to 1,126 and blue chip DS30 index dropped 4.25 points or 0.24 percent to 1,699.

The market witnessed lackluster trading, plunging to the lowest in several weeks. The turnover in value stood at Tk540 crore, sharply down by over 31 percent over the previous session.

Investors’ cautious stance on apprehension of new round of lockdown because of spiking COVID-19 infections and ongoing Robi IPO subscription have pushed the volume of trade down, according to brokers.

In addition, most institutional investors remained inactive ahead of the largest IPO of all time, leaving on impact on the turnover, said a broker at a top brokerage firm.

Sectors that dragged the benchmark index in the red included NBFI that declined 1.64 percent. Food and allied dropped by 1.15 percent, engineering percent, fuel and power percent, telecommunication 0.36 percent and bank percent.

Nearly all sectors saw an erosion in market capitalization but the effect was more sever in the IT sector and Mutual Funds which saw capitalisation reduce by 3.05 percent and 2.66 percent.

Out of total 335 issues traded, 174 closed in red, 80 in green while the value of 81 stocks remained unchanged.

Beximco Pharmaceuticals continued to dominate the trading as it remained the most traded stock for the third straight day with shares worth Tk 43 crore changing hands, followed by Square Pharmaceuticals, BRAC Bank, Quasem Industries, Associated Oxygen Limited, Beximco, Grameen Scheme Two, Northern Insurance, Jamuna Bank and AB Bank First Mutual Fund.

BD Lamps gained highest, increasing by 9.9 percent to Tk9.21 per share as its third quarter (July-September) EPS increased to Tk1.18 from negative Tk1.48 recorded a year ago. Its EPS saw a healthy growth due to the decrease in finance cost and increase in other income including dividend income.

Generation Next Fashions suffered most as it declined more than 9 percent in its first trading day after record date.