Stocks start a slow week

Stocks started the week in a sluggish mood yesterday as investors did not seem to have confidence in indices due to low participation of institutional investors.

The benchmark General Index, DGEN of Dhaka Stock Exchange, closed at 6,172 points, after declining 0.65 percent or 40 points.

The market started the day on a positive note and gained 45 points at 11:35am but finally closed the trading sessions in the red.

“The movement of market indices seemed usual,” said Shakil Rizvi, president of DSE. “It is a natural process of the market.”

Rizvi said most of the investors seemed prone to relying on rumours; as a result, they sustained losses in fundamental shares.

Turnover and volume of the market were also significantly down, said LankaBangla Securities in its regular market analysis.

“Buy side participants were largely inactive in the market while profit-booking by some investors ahead of festivities encouraged the bottom hunting,” it said.

Activities were rather poor on the premier bourse where turnover, volume and trade plunged 17.91 percent, 19.32 percent and 15.13 percent respectively.

Short trading sessions for the month of Ramadan also contributed to the decreasing activities.

Meanwhile, it has been reported that the central bank has brought down the credit deposit ratio in June 2011 to put a tight rein on the credit growth of the commercial banks.

A total of 1.01 lakh trades were executed during the trading session generating Tk 439 crore in turnover. A total of 6.08 crore shares and mutual funds changed hands.

Market breadth indicated that the health of the market was negative. On the DSE, 60 shares gained in price while 184 shares declined. A total of 7 shares remained unchanged. Among the DSE-20 blue-chips, only eight closed green.

Apex Tannery lost 3.8 percent after a corporate declaration of 30 percent cash dividends.

Square Pharmaceuticals was the most active in terms of turnover, gaining 0.75 percent and topping the turnover chart as 70.45 lakh shares worth Tk 24.99 crore changed hands.

Among the major sectors pharmaceuticals gained 0.36 percent, while the banks lost 0.58 percent, non-bank financial institutions 0.92 percent, telecommunication 1.18 percent and fuel and power 0.90 percent respectively.

ICB AMCL Islamic Mutual Fund was the biggest gainer of the day, posting 5.01 percent rise, while the International Leasing and Finance Services was the worst loser, slumping by 41.76 percent.

Chittagong Stock Exchange also declined yesterday with the Selective Categories Index, CSCX of CSE going down by 62 points or o.55 percent, to end the day at 11,314.

Losers beat advancers 34 to 142, with four securities remaining unchanged on the port city's floor that traded over 97.94 lakh shares and mutual fund units worth Tk 49.18 crore.

Source: Daily Star