Stocks lurch into the red in jittery trade

Stocks slipped yesterday, as institutional investors remained inactive fearing that the market may continue its losing streak.

The benchmark General Index, DGEN of Dhaka Stock Exchange, closed on 6,057 points, after declining 60 points or 0.99 percent. The DSE-20 blue-chips index declined 0.76 percent.

“Institutional investors almost remained inactive in the market,” said Fakhor Uddin Ali Ahmed, president of Chittagong Stock Exchange.

The regulator could take steps to motivate the existing institutional and small investors to involve them in the market, said Ahmed.

Investors went for jittery trading following the news of filing cases against market manipulators, said an official of the Securities and Exchange Commission.

“The SEC has finally filed cases against some individual investors for being allegedly involved in stock manipulation. The month-long apprehensive speculation over this issue is expected to come to an end,” said LankaBangla Securities, a leading stockbroker.

“Apart from that, the dearth of liquidity ahead of Eid festivity kept institutions almost inactive in the market. All factors resulted in meagre activities on the bourse pulling the index into the negative territory again.”

On the other side investors were largely reluctant to take fresh exposure amid the ongoing jittery trend of the market, said the stockbroker.

Activities were significantly down on the bourse where turnover, volume and trade plunged 9.91 percent, 7.73 percent and 6.82 percent respectively.

Around 73,000 trades were executed during the trading session generating a small turnover of Tk 303 crore with over 4.5 crore shares and mutual fund units changed hands. Turnover on the DSE floor hits three months low.

Meanwhile, the CSE has made a presentation on demutualisation to the SEC.

“We tried to explain our position and process of demutualisation to the regulator,” said the CSE president.

Of the total 251 issues traded on the premier bourses, 209 declined and 36 advanced. A total of six shares remained unchanged.

At the close of the session, United Airways was the most active in turnover with 77.75 lakh shares worth Tk 24.43 crore changed hands.

Monno Ceramic was the biggest gainer of the day, posting 7.31 percent rise, while National Life Insurance was the worst loser, slumping by 37.54 percent.

Chittagong Stock Exchange also declined yesterday with the Selective Categories Index, CSCX. It lost 98 points or 0.87 percent, to end the day on 10,083.

Losers beat advancers 15 to 150, with two securities remaining unchanged on the port city's floor that traded over 79.69 lakh shares and mutual fund units worth Tk 36.06 crore. The bourses will remain close today on a public holiday.

Source: Daily star