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Stocks slip back into red as World Bank growth forecast prompts selling spree

| Updated: October 08, 2020 16:57:07

Investors react while monitoring stock price movements on computer screens at a brockerage house in the capital city — FE/Files Investors react while monitoring stock price movements on computer screens at a brockerage house in the capital city — FE/Files

Stocks slipped into the red on Thursday, after a single-day break, as shaky investors went on a selling binge on major sectors issues.

Markets opened on an upbeat note and the key index of the major bourse rose 21 points within the first 10 minutes of trading.

However, World Bank’s lower GDP forecast news prompted investors to resort to sell-offs.

Bangladesh’s GDP growth is prjected at 1.60 per cent for the current fiscal year as the country struggles with the devastating impact of the lingering Covid-19 pandemic, the World Bank said in its twice-a-year-regional update on Thursday.

At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 17.49 points, or 0.35 per cent, to settle at 4,916 after four and a half hours trading.

Two other indices of the premier bourse also ended lower. Of them, DS30 index, comprising blue chips, lost 8.29 points to finish at 1,669 and Shariah index fell 3.13 points to close at 1,108.

Turnover, a crucial indicator of the market, also plunged to a two-week low at Tk 7.93 billion, which is 10.70 per cent lower than the previous session’s turnover of Tk 8.88 billion.

Market analysts said risk-averse investors went on selling shares on major sectors stocks for booking profits as the sectors saw a significant gain in the past two months.

Retail investors sold stocks for booking profits while institutional investors remained on the sidelines, said an analyst at a leading brokerage firm.

He said many investors are also moving to the primary market as the Bangladesh Securities and Exchange Commission (BSEC) approved a good number of initial public offerings in the past two months.

Losers took a strong lead over gainers as out of 355 issues traded, 202 ended lower, 106 closed higher while 47 issues remained unchanged on the DSE trading floor.

A total number of 173,049 trades were executed in the day’s trading session with a trading volume of 368.22 million shares and mutual fund units.

The insurance sector dominated the turnover chart with Northern Islami Insurance topping the list with shares worth Tk 225 million changing hands, closely followed by Continental Insurance, Islami Insurance Bangladesh, Beximco and Beximco Pharma.

Bangladesh General Insurance Company was the day’s best performer, posting a gain of 9.96 per cent while Walton Hi-Tech was the worst for the second straight session, losing 7.50 per cent.

The Chittagong Stock Exchange also ended lower with its All Shares Price Index (CASPI) losing 83 points to close at 14,029 and the Selective Categories Index  (CSCX) shedding 51 points to close at 8,423.

Of the issues traded, 156 declined, 79 advanced and 40 remained unchanged on the CSE.

The port city bourse traded 11.17 million shares and mutual fund units with a turnover value of more than Tk 209 million.


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