Stocks keep losing for fourth straight session

Stocks extended the losing streak for the fourth straight session on Monday as cautious investors continued their sell-offs on sector-wise issues amid growing tension over the second wave of coronavirus pandemic.

The market started with a sharp fall and the core index dropped more than 65 points within the first 25 minutes of trading. However, it recovered two-third of the losing points at closing.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 23.26 points or 0.48 per cent to settle at 4,817.

DSEX lost more than 84 points in the past four consecutive sessions.

Market analysts said investors are reluctant to make fresh investments in stocks amid the rising trend of Covid-19 infections in recent days while some gave their attention to the primary market.

Notable price fall of large-cap stocks sent the market on a downward trend, said a leading broker.

Top negative index contributors of the market were Square Pharma, Investment Corporation of Bangladesh, United Power, Grameenphone and British American Tobacco, according to data from amarstock.com, a stock market data analyst.

These five stocks contributed for 24 points fall of DSEX while Square Pharma alone accounted for 13 points fall.

Recent price bidding and IPO subscription of a number of companies had stuck a large number of funds in the primary market which is a reason for low turnover in recent days, said a leading broker.

Meanwhile, the subscription of the biggest IPO in the history of Bangladesh concluded today (Monday). The company would raise Tk 5.23 billion under the fixed price method.

Two other indices also closed lower. The DS30 index, comprising blue chips, lost 15.42 points to finish at 1,669 and the DSE Shariah Index dropped 13.01 points to close at 1,107.

The daily trade turnover on the DSE, however, rose to Tk 6.21 billion, which was 25 per cent higher than the previous day’s four-month lowest turnover of Tk 4.95 billion.

Losers took a modest lead over the gainers as out of 344 issues traded, 134 closed lower, 124 higher and 86 issues remained unchanged on the DSE trading floor.

A total number of 127,756 trades were executed in the day’s trading session with a trading volume of 220.26 million shares and mutual fund units.

Beximco Pharma continued to dominate the turnover chart with 2.17 million shares worth Tk 305 million changing hands, followed by Square Pharma, Eastern Insurance, Nitol Insurance and Asia Insurance.

The insurance sector returned to the gaining streak as the day’s top 10 gainers belong to the insurance sector.

Nitol Insurance was the day’s best performer, posting a gain of 10 per cent while Kattali Textile was the worst loser, losing 10.47 per cent following its price adjustment after the record date.

The Chittagong Stock Exchange also kept losing with its All Shares Price Index (CASPI)—shedding 56 points to close at 13,807 while the Selective Categories Index – CSCX losing 33 points to close at 8,317.

Of the issues traded, 99 declined, 77 advanced and 58 remained unchanged on the CSE.

The port city bourse traded 6.10 million shares and mutual fund units with a turnover value of more than Tk 130 million.

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