DSE market cap sheds Tk 266b in eight months

Prime index slumps 10pc during the period


Babul Barman | Published: September 03, 2018 00:21:39


The market capitalisation of Dhaka Stock Exchange (DSE) declined by about Tk 266 billion in last eight months as investors were on selling binge.

The total market cap was Tk 4,228 billion on the opening day of the year, but gradually came down to Tk 3,962 billion on Thursday last, the last trading day of August.

During the period, DSEX, the prime index of the DSE, also witnessed a fall of 644 points or 10.31 per cent.

The DSEX started the year at 6,244 points and came down to 5,600 points on Thursday, the last trading day of the month of August.

Market operators said foreign and local investors booked profits while most of the retail investors were on selling mood instead of taking fresh position during the period.

They said the pessimism, coupled with disappointing quarterly earnings results, particularly banks in the first quarter, dented the investors' confidence.

Accordingly, the heavyweight banking sector lost more than 28 per cent in market capitalisation alone in seven months till July 2018.

However, the banking sector started to attract investors as the investors find an alternative to low-cap stocks and junks, which are facing a new regulatory squeeze because of abnormal price hikes.

The heavyweight banking sector posted the highest gain in August, posting 16 per cent return as share prices of 29 banks saw price appreciation, out of 30 listed banks.

The prime index of the DSE also recovered about 298 points or 5.62 per cent last month riding on banking and non-banking financial institutions stocks.

The non-bank financial institutions also witnessed 15 per cent return last month as 22 issues of the sector ended higher, out of 23.

Among other major sectors, fuel & power and insurance closed higher while rest of the sectors saw their price decline, according to statistics from the DSE.

Out of 18 sectors having 306 listed companies, the share prices of 159 companies increased, 137 declined and 16 remained unchanged in August compared to July.

Of the companies, National Housing Finance & Investment posted the highest gain of 63 per cent to close at Tk 71.40 on Thursday last.

IPDC Finance was the second highest gainer in August, posting a 50 per cent return to close at Tk 44 each.

The share price of Intech also soared 47 per cent last month compared to close at Tk 24.36 each.

Midas Financing's share price also jumped 43 per cent in August to close at Tk 32 each on Thursday last.

The share prices of Trust Bank, GSP Finance, Premier Leasing, International Leasing and Rangpur Dairy & Food Products also rose between 25 per cent and 36 per cent in August compared to July.

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