Tuesday 27, September 2022
BN

Stocks fall for third straight day

Time Digital Report: Shares on the Dhaka Stock Exchange declined today for the fourth consecutive day owing to persisting economic uncertainty, runaway inflation and the latest floods.

The DSEX, the benchmark index of the premier bourse in Bangladesh, lost more than 45 points, or 0.72 per cent, to close at 6,311.65.

The DSES Index, which represents the Shariah-based companies, ended at 1,378.91, down 9.11 points or 0.66 per cent.

Similarly, the DS30 Index, which consists of the blue-chip firms, slipped 19.16 points, or 0.83 per cent, to 2,295.42.

Turnover, an important indicator of the market, fell nearly 12 per cent to Tk 725 crore. It was Tk 822 crore on Monday.

Losers outnumbered gainers, with 57 securities advancing, 282 declining and 53 remaining unchanged.

Investors are in a selling mood owing to persisting uncertainty from the pandemic and the Ukraine war, a lack of adequate incentives in the budget, higher inflation and the spreading floods.

"The risk-averse investors kept their selling spree on sector-specific issues fearing the macroeconomic outlook," said International Leasing Securities Ltd in its daily market review.

The rising inflation is reducing the real income of investors and the appreciating dollar is decreasing the value of foreign investors' portfolio.

Meanwhile, investors preferred to hold cash and cut their participation in the market, it said.

In Bangladesh, inflation surged to an eight-year high of 7.42 per cent in May, driven by a hike in food costs, while the local currency has kept falling against the US dollar because of a fall in the foreign currency reserves, driven by abnormally high import bills.

Among the individual companies, Imam Button Industries topped the gainers' list rising 10 per cent.

Meghna Insurance, Progressive Life Insurance, Emerald Oil Industries, Meghna Cement Mills, Fu Wang Food, Progressive Life Insurance, Al-Haj Textile Mills and Bangladesh Industrial Finance Company posted major gains.

Tallu Spinning Mills, Bangladesh Shipping Corporation, Eastern Lubricants Blenders, Paramount Insurance Company, Eastland Insurance Company, Genex Infosys, and Apex Tannery suffered sizeable losses.

Bangladesh Export Import Company was the most-traded issue on the day, with its shares worth Tk 38.47 crore transacting.

Anwar Galvanizing, Fu Wang Food, JMI Hospital Requisite Manufacturing, Shinepukur Ceramics, and RAK Ceramics (Bangladesh) also saw higher turnover.

The Chittagong Stock Exchange also fell.

The CASPI, the all-share price index of the bourse in the port city, gave up 137 points, or 0.73 per cent, to end at 18,591.

Of the securities, 34 advanced, 211 retreated and 30 did not see any price movement.

Turnover at the port city bourse fell slightly to Tk 56.27 crore from Tk 57.18 crore a day ago.

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