Stocks fall for sixth straight day

Shares on the Dhaka Stock Exchange (DSE) fell for the sixth consecutive day yesterday thanks mainly to the price erosion of several large-cap scrips.

Of the large-cap stocks, BRAC Bank, British American Tobacco Bangladesh, Beximco Pharmaceuticals, Beacon Pharmaceuticals, Walton, Robi Axiata, and Power Grid Company of Bangladesh saw significant declines.

Yesterday's market, smarting from a massive fall a session earlier, opened lower and finally finished with a moderate slump.

The DSEX, the benchmark index of the DSE, plunged 37.63 points, or 0.69 percent, to settle the day at 5,393.65, the lowest in more than three years.

Likewise, the DSES, the index that comprised shariah-based companies, edged down 10.88 points, or 0.91 percent, to 1,180.76.

The DS30, the index which represents the blue-chip stocks, slipped 9.56 points, or 0.49 percent, to 1,938.88.

However, turnover, which indicates the amount of trading activity on the premier bourse of Bangladesh, rose 37.15 percent to Tk 56.12 crore.

The top official of a brokerage firm blamed the huge selling pressure from foreign investors for the drop posted by the large-cap stocks.

"Investors fear that the local currency of Bangladesh may weaken further, so they are selling shares and pulling out their funds to protect their investments."

The taka has lost its value by about 35 percent against the US dollar in the past two years owing to the continuous decline in the foreign currency reserves, which have halved during the period.

Among the sectors, pharmaceuticals dominated the turnover chart, making up 25.36 percent of the day's turnover.

Orion Pharma topped the turnover list with 9.81 percent of its shares changing hands. Other scrips that also witnessed an elevated trading activity included Taufika Foods and Lovello Ice-Cream, Rupali Life Insurance Company, and e-Gen Consultants.

Block market turnover stood at Tk 31.87 crore, representing 5.7 percent of the day's total turnover. The block market is a platform where a large volume of stocks is traded in a single transaction at a negotiated price without affecting the index.

Out of the 389 issues that were traded, 278 fell, 81 managed to close higher while 30 remained unchanged.

In its daily market update, Shanta Securities said the market movement was driven by negative changes in the market capitalisation of travel and leisure, food, and financial institutions scrips amid a positive change in the market cap of jute.

Bangladesh Industrial Financial Company topped the gainers' chart with a 10 percent increase. Crystal Insurance, Mithun Knitting and Dyeing, ICB AMCL First Agrani Bank Mutual Fund and Orion Pharma rose more than 9 percent.

Alltex Industries, Shepherd Industries, Bashundhara Paper Mills, FAS Finance & Investment, and Progressive Life Insurance were also on the top gainers' list.

Sonali Aansh Industries was the worst-performing share on the DSE yesterday, plunging 46.58 percent since there was no circuit breaker owing to its record date a day earlier. Normally, a stock is allowed to fall 3 percent on a given day.

BRAC Bank gave up 7.29 percent. BAT Bangladesh, eGeneration, Far East Knitting & Dyeing Industries, HR Textile, and Gemini Sea Food decreased 3 percent.

The Chittagong Stock Exchange witnessed a similar trend as the Caspi, the main index of the port city bourse, nosedived 132.13 points, or 0.84 percent, to close at 15,605.13 points.