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DSE, CSE keep losing amid low confidence

FE Online Report | Published: July 03, 2019 15:49:29 | Updated: July 04, 2019 15:45:19


Stocks extended the losing streak for the three consecutive sessions Wednesday as investors kept their selling binge on major sectors’ shares.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 12.71 points or 0.23 per cent to finish at 5,372.

The parliament passed the budget that brought down the tax on retained earnings and reserves of listed companies to 10 per cent from the proposed 15 per cent.

The government also relaxed conditions for holding on to retained earnings: a company has been allowed to keep 70 per cent of its profits in a year as retained earnings.

Market analysts said investors expressed mixed reaction on final budget as some argued that the step would discourage business expansion while some said the retail investors will be benefited.

Latest gas price hike also put a negative impact on manufacturing companies’ shares as the price hike was likely to have an impact on their profits, said a leading broker.

The market opened on positive note and the key index rose about 14 points within first 15 minutes of trading. But rest of the session went down steadily.

Two other indices also ended lower. The DS30 index, comprising blue chips, shed 2.91 points to finish at 1,909 and the DSE Shariah Index lost 1.18 points to close at 1,233.

Turnover, another important indicator of the market, stood at Tk 5.07 billion, which was 5.18 per cent higher than the previous day’s turnover of Tk 4.82 billion.

The losers took a modest lead over the gainers as out of 353 issues traded, 177 declined, 126 advanced and 50 issues remained unchanged on the DSE trading floor.

National Life Insurance topped the turnover chart with 629,232 shares worth Tk 151 million changing hands.

The other turnover leaders were Runner Automobiles, United Power, Singer Bangladesh and Monno Ceramic Industries.

A total number of 31,744 trades were executed in the day’s trading session with trading volume of 135.46 million securities.

The market capitalisation of the DSE also fell to Tk 3,970 billion on Wednesday, from Tk 3,980 billion in the previous session.

Dhaka Insurance was the day’s best performer, posting a gain of 9.79 cent while SEML Lecture Equity Management Fund was the worst loser, losing 7.05 per cent.

The port city bourse, Chittagong Stock Exchange, also ended lower with its CSE All Share Price Index – CASPI –losing 46 points to settle at 16,465 and the Selective Categories Index - CSCX –falling 27 points to finish at 9,983.

Here too, the losers beat gainers, as 132 issues closed lower, 98 higher and 38 remained unchanged on the CSE trading floor.

The port city bourse traded 9.18 million shares and mutual fund units worth Tk 334 million in turnover.

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