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Dhaka stocks dropped for the fourth day on Monday as investors grappling with volatile financial market, Grameenphone’s long tussle with telecom regulator over audit claim and falling foreign portfolio investment continued offloading their holdings.
DSEX, the prime index of the Dhaka Stock Exchange, lost 0.73 per cent, or 37.14 points, to close at 5,033.53 points on Monday.
The DSEX lost 145 points in last four sessions, and it declined by 203 points in last six sessions with just one positive day.
The market started falling from the beginning of the day’s session and descended more firmly as the time progressed and closed in the red zone as investors continued selling shares amid lack of confidence in the market, market operators said.
They said that investors lost their hope and preferred to withdraw funds from the market.
Because of a prolonged bearish trend and volatility at the country’s capital market, the foreign investors continued taking out funds from the market.
The media reported on Monday that the net foreign investment remained negative for six consecutive months.
The overseas investors withdrew around Tk 619 crore in last six months (March-August) from the capital market.
A bleak situation in the financial sector also ignited share sales at the stock market, market operators said.
They said the capacity of the institutional investors dropped due to the dearth of funds.
The financial sector has been reeling under the burden of huge amount of non-performing loans in banks and the government failed to improve the situation.
According to Bangladesh Bank data, the amount of classified loans in the January-June period this year surged by 19.71 per cent to reach Tk 1,12,425.17 crore at the end of June this year from Tk 93,911.4 crore at the end of December, 2018.
Besides, the government collected whopping Tk 26,248.52 crore from the banking system in between July 1 to August 20 against Tk 26,886 crore it borrowed in the entire last fiscal year that might worsen the current liquidity condition, market operators said.
On top of that, Bangladesh Bank recently directed the banks to maintain cash reserve ratio and statutory liquidity ratio for their exposure through offshore banking operations.
Market operators said the tussle between Grameenphone and Bangladesh Telecommunication Regulatory Commission continued hammering share prices of the top capitalised company at the market.
The share prices of GP plunged by 1.91 per cent to end at Tk 304.1 per share on Monday. The company lost 16.71 per cent in last 39 trading sessions.
EBL Securities in its daily market commentary said, ‘From the beginning of the session, the market continued its downward vibe as many investors rebalanced their portfolios out of caution because of telecom regulator’s strict stance, soaring non-performing loans and falling foreign portfolio investment.’
The average share prices of non-bank financial institutional sector dropped by 1.8 per cent, telecommunication 1.78 per cent, textile 1.5 per cent and bank 0.8 per cent on the day. Out of the 343 scrips traded, 209 declined, 100 advanced and 45 remained unchanged.
Turnover on the bourse increased to Tk 442.90 crore on Monday from Tk 332.40 crore in the previous session.
DS30, the blue-chip index of the DSE, shed 0.91 per cent, or 16.42 points, to close at 1,775.00 points.
DSE Shariah index DSES lost 0.50 per cent, or 5.96 points, to close at 1,172.39 points.
Monno Ceramics led the turnover chart with its shares worth Tk 33.74 crore changing hands.
United Power Generation Company, Stylecraft Limited, JMI Syringe, IT Consultants, Silco Pharmaceuticals, Wata Chemicals, Beacon Pharmaceuticals, National Polymer and Monno Jute Stafflers were the other turnover leaders.
Intech Limited gained the most on the day with a 9.96-per cent increase in its share prices while Zeal Bangla Sugar Mills was the worst loser, shedding 8.78 per cent.
(NA)
