Stocks fall for fifth straight day on sell-offs of blue chips

The broad index of the Dhaka bourse on Tuesday experienced another sharp fall by 41 points, extending the losing streak for the fifth session in a row and hitting the lowest level in around five years.

The DSEX, broad index of the Dhaka Stock Exchange (DSE), dipped below 4700-mark as jittery investors continued to be in a selling spree. It lost a total of 123 points or 2.56 per cent in the five sessions to Tuesday and settled at 4678 points.

A further index correction by 41 points on Tuesday bore significance as the market had already reached its widely-believed lowest point after persistent correction.

Of the 41 points lost, the loss of 32 points was shared between 10 index draggers, including Square Pharmaceuticals and British American Tobacco Bangladesh.

Square Pharma alone caused a loss of 6 points in the broad index. The company's market cap was reduced by 1.6 per cent on the DSE.

The overall price-to-earnings ratio of the DSE now hovers around 9, which indicates that listed securities have experienced significant correction over the last few months.

The price erosion of large-cap stocks, especially the blue chip ones, intensified the recent index fall.

On Tuesday, 20 blue chip companies closed in the red. The DS30 index shed 1.01 per cent or 17.73 points to close at 1724 points.

On the other hand, Shariah-based listed banks, including junk stock ICB Islamic Bank, saw appreciation as the market reacted positively to the news over the central bank's decision to merge weak banks in the drive to reform the financial sector.

Few other companies witnessed marginal appreciation. They included Grameenphone, Bangladesh Shipping Corporation, and BSRM.

Of the issues traded, 83 advanced, 237 declined and 72 remained unchanged. The DSE featured a turnover of Tk 2.72 billion.

Union Bank was the number one gainer with an appreciation of 10 per cent while NCC Bank was the day's worst loser, shedding 9.64 per cent on the DSE.

mufazzal.fe@gmail.com