Dhaka stocks declined on Monday, ending a five-day gaining streak as a section of investors rushed to book profits for fear that the market would return to the losing track amid bleak outlook for the county’s economy and financial sector.
DSEX, the key index of Dhaka Stock Exchange, lost 0.5 per cent, or 24.21 points, to close at 4,734.59 points on Monday after gaining 70 points in previous five sessions.
The market opened with positive momentum, but the vibe did not sustain for long as the core index moved downwards to end the session in the negative trajectory as investors went for selling shares, market operators said.
They said that some investors rushed to book profits.
Prolonged bear run at the market is still haunting the investors and investors hesitated to keep investment for a longer period, they said.
The DSEX lost more than 1,200 points in last 10 months.
Market operators said the country’s economic outlook was not good that had made investors more worried about the capital market.
The media on Monday reported that the private sector credit growth hit a fresh nine-year low of 10.04 per cent in October this fiscal year (2019-2020), reflecting a gloomy state of the country’s economy.
The country’s export earnings in the first four months (July-October) of FY20 posted a negative growth, while import payments also dipped in the first quarter (July-September) while tax revenue collection also languished in the first quarter.
Banks’ defaulted loans continued swelling to stand at Tk 1,16,288 crore in September after adding Tk 3,863 crore in the July-September period.
The media recently reported that the net foreign investment at the DSE remained negative for last nine consecutive months. It dipped to Tk 99 crore negative in November after Tk 96.92 crore negative in October.
The average share prices of textile sector dropped by 1.1 per cent, pharmaceuticals 0.9 per cent, non-bank financial institution 0.89 per cent and energy 0.6 per cent.
The market had gained in the previous five sessions as some investors took the price erosion as opportunity of maximising their profits from the market.
The price of LafargeHolcim Bangladesh plunged by 7.87 per cent on Monday after surging in the previous three sessions.
The share prices of the cement company soared by 23 per cent in the previous three sessions after the High Court Division had approved the scheme of amalgamation of Holcim Cement (Bangladesh) Limited with LafargeHolcim Bangladesh Limited.
EBL Securities in its daily market commentary said that many opportunist investors were taking position on specific bank sector issues.
Therefore, share prices of bank sector advanced by 1.5 per cent on Monday.
Turnover on the DSE dropped to Tk 482.47 crore on Monday from Tk 521.64 crore in the previous day.
Out of the 343 scrips traded on Monday, 194 declined, 124 advanced and 28 remained unchanged.
DSE blue-chip index DS30 dropped by 0.95 per cent, or 15.78 points, to close at 1,629.04 points.
Shariah index DSES also shed 0.91 per cent, or 9.87 points, to end at 1,067.75 points.
LafargeHolcim Bangladesh led the turnover chart with its shares worth Tk 13.83 crore changing hands on the day.
Premier Bank, IFIC Bank, Square Pharmaceuticals, Dutch-Bangla Bank, Fortune Shoes, National Tubes, Exim Bank and City Bank were the other turnover leaders.
Islami Bank gained the most on the day with a 9.83-per cent increase in its share prices while Maksons Spinning Mills performed the worst, losing 8.92 per cent.