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The Financial Express

Stocks witness slow trend at opening

| Updated: July 28, 2021 16:33:58


Stocks witness slow trend at opening

Stocks posted a marginal rise at the opening on Tuesday as investors were mostly cautious following the Bangladesh Bank’s latest directive to curb the flow of stimulus funds to unproductive sectors.

The market opened on a slow trend and the benchmark index of the Dhaka Stock Exchange (DSE), went up by 4.80 points or 0.07 per cent to stand at 6,408 points within the first 30 minutes of trading when the report was filed at 10:30 am.

The Shariah Index (DSES) also gained 1.25 points to stand at 1,391 points till then. But, the DS30 index, comprising blue chips, fell 4.69 points to reach 2,318.

Turnover, another important indicator of the market, stood at Tk 2.46 billion within the first 30 minutes of trading at 10:30 am.

Market insiders said the investors remained cautious following the Bangladesh Bank’s warning to the commercial banks of diverting funds to unproductive sectors like the stock market.

The central bank said they found some stimulus funds were even being used in real estate and the stock market as economic activities remained sluggish in the face of recurring waves of Covid-19.

In a letter sent to banks on Sunday, the BB asked lenders to engage internal audit divisions in ensuring that money was not going to unproductive sectors and the stimulus loans are used in the targeted sectors only.

Of the issues traded till then, 177 advanced, 119 declined and 62 remained unchanged on the DSE trading floor till then.

Newly listed Baraka Patenga Power was the most traded stock till then with shares worth Tk 162 million changing hands, closely followed by NRB Commercial Bank, Orion Pharma, GPH Ispat, and Central Pharma.

However, the port city bourse – the Chittagong Stock Exchange – (CSE) saw a negative trend till then with CSE All Share Price Index- CASPI-losing 58 points to stand at 18558, also at 10:30 am.

Of the issues traded till then 45 advanced, 55 declined and 18 remained unchanged with Tk 56 million in turnover.

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