Stocks dip as investors react on BB action

FE Online Report | Published: October 10, 2017 11:55:56 | Updated: October 24, 2017 05:25:41


Stocks witnessed downward trend in early trading on Tuesday as market reacted negatively to the central bank’s action against the overexposed banks.

The capital market has become mostly dependent on the banking sector in recent times. The banking sector contributed up to around 40 per cent of the total market turnover in September.

Bangladesh Bank fined seven banks for violating stock-market rules by way of miss-reporting on share investment and over-exposure which created panic among investors.

As a result, DSEX plunged 1.23 per cent on Monday, the biggest single-day fall in five months.

Following the previous day’s sharp decline, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) opened lower amid low trading activities.

Within first 15 minutes of trading, the key index of the country’s prime bourse fell more than 33 points while the Selective Category Index of port city bourse lost 56 points at 10:45am.

However, it recovered most of the early losses and after 30 minutes of trading, DSEX lost 13 points while the Selective Category Index of port city bourse los fell 30 points at 11:00am when the report was filed.

DSEX, the prime index of the DSE, went down by 13.19 points or 0.21 per cent to stand at 6,116 at 11:00am.

The two other indices also saw downward trend till then. The DS30 index, comprising blue chips fell 5.43 points or 0.24 per cent to 2,194.

The DSE Shariah Index (DSES) lost 1.87 points or 0.13 per cent to stand at 1,347.

Turnover, the important indicator of the market, stood at Tk 1.48 billion when the report was filed at 11:00am.

Of the issues traded till then, 107 advanced, 101 declined and 44 remained unchanged.

LankaBangla Finance dominated the turnover chart till then with shares of Tk 180 million changing hands, closely followed by Exim Bank Tk 105 million, Shahjalal Islami Bank Tk 82 million, Uttara Bank Tk 78 million and Aamra Networks Tk 72 million.

-bb/shuvo/rmc

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