Stocks’ biggest dive in a month
Stocks suffered the biggest daily fall in more than a month yesterday amid a confidence crisis among investors and liquidity pressure in the financial sector.
DSEX, the benchmark index of the prime bourse, slid nearly 58 points, or 1.10 percent, to close at 5,165.76.
It was the steepest single day slide since July 22, when the DSEX shed 67 points.
Stock investors are still suffering from a confidence crisis as the market remained volatile in the last few months and the regulators could not stop rogue players from gambling with junk stocks, analysts said.
Zeal Bangla Sugar Mills, one of the junk stocks, topped the gainers list yesterday, riding on the buying pressure from gamblers.
Another junk stock topped the gainers list on Sunday for the same reason.
Furthermore, banks will have to adjust their loans-deposit ratio within the next month, which would reduce their scope for investment.
Most of the institutional investors have adopted a wait-and-see approach and without the institutional investors’ participation the market cannot behave at the expected level, said a top official of a leading stock brokerage house.
LankaBangla Securities said in its daily market analysis that all the large cap sectors showed negative movements. Among them, textile exhibited the highest negative movement, posting a 2.13 percent loss.
Among the other major sectors, fuel and power sector shed 1.99 percent and non-bank financial institutions 1.5 percent.
United Power Generation, Grameenphone and British American Tobacco Bangladesh were the top negative contributors to the index. The three companies struck off 24 points from the DSEX.
Daily turnover of the premier bourse declined 4.65 percent to Tk 447.16 crore.
United Power Generation was the highest traded share with a turnover of Tk 21.92 crore, followed by Silco Pharmaceuticals, Orion Infusion, Monno Ceramic Industries and Bangladesh Shipping Corporation.
On the day, 55 securities gained, 276 declined and 22 remained unchanged. DS30 and DSES dropped 22.09 and 10.67 points respectively.
