Stocks bleed despite GP surge
Stocks extended their losses for the third consecutive day as nervous foreign investors continued to dump their shares anticipating further depreciation of the taka.
Though heavyweight Grameenphone added 57 points upon positive developments on its audit claim, the benchmark index of the Dhaka bourse shed 32.03 points or 0.65 percent to close at 4,855.98 -- the lowest since December 6, 2016.
In the last three days, the index sank 104 points and investors lost Tk 2,463 crore.
The major contributors to yesterday’s slump were Square Pharmaceuticals, United Power, Renata, Marico, BATBC and Berger, all of which have substantial foreign shareholders. They snatched 20 points from the DSEX.
Grameenphone, the largest listed company on the Dhaka Stock Exchange, rose 8.72 percent -- the highest yesterday -- to Tk 335 after Finance Minister AHM Mustafa Kamal stepped in on Wednesday to broker a truce between the Bangladesh Telecommunication Regulatory Commission and Grameenphone and Robi.
“Another way of looking at yesterday’s development is that Grameenphone saved the market from registering an even bigger fall,” said the head of research of a leading merchant bank requesting anonymity.
Foreign investors started offloading their shares from March fearing further depreciation of the local currency.
Taka depreciated about 0.66 percent this year against the dollar, but foreign investors expect the local currency to sink even deeper in the days ahead.
“Foreign investors dumped their shares, so most of the multinational companies and well-performing stocks sank, which ultimately dragged down the index,” he added.
Besides, retail investors have been swept up by the overriding pessimism in recent weeks, so they are offloading their holdings to avoid further losses on their portfolio, according to International Leasing Securities Limited’s daily market analysis.
“Investors can’t remain optimistic now as the index is below the psychological 5,000-mark,” said a stock broker preferring not to be named.
Of the traded issues, 46 advanced, 269 dropped and 38 remained unchanged, according to data from the DSE.
All the large-cap sectors showed negative movement except telecommunication, which gained 8.29 percent. Textile lost the most: 2.08 percent. Turnover, another important indicator of the market, rose 3.61 percent to Tk 384.96 crore.
National Tubes dominated the turnover chart with its transactions worth Tk 19.28 crore, followed by Fortune Shoes, Square Pharmaceuticals, Monno Jute Stafflers and Beacon Pharmaceuticals.
Bangladesh Industrial Finance Company was the worst loser, shedding 10 percent. Chattogram stocks also fell yesterday with the bourse’s benchmark index, CSCX, declining 53.34 points, or 0.59 percent, to finish the day at 8,960.79.
Losers beat gainers as 190 declined, 44 advanced while 26 finished unchanged on the Chittagong Stock Exchange.
