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The mutual fund sector dropped by more than 4 per cent yesterday due to price adjustments after declaring higher dividends.
Apart from this sector, the bank, non-bank financial institution (NBFI), pharma and textile sectors also fell, which ultimately had a negative impact on the market index.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dropped 36 points, or 0.50 per cent, to 7,191 after a two-day rise.
“As the trading of many mutual funds resumed after price adjustments following dividend declarations on the day, the sector fell,” a stock broker said.
Moreover, the funds’ fall has a spill-over effect on investors’ mentality so among the 37 listed mutual funds, one rose and nine remained the same while all others dropped, DSE data shows.
Mutual funds pool money from investors to channel it into securities such as stocks, bonds, and other assets. Depending on the profits earned, investors are paid their share as dividends.
The mutual fund sector announced better dividends this year as they made higher profits from the stock market, he said. Meanwhile, investors sold their shares in large capital-based companies as well since these stocks gained around 10 to 12 per cent in the last few weeks, the stock broker added.
The capital market began the week with a setback amid shaky investor confidence, said International Leasing Securities in its market review.
A day-long battle between optimistic and pessimistic investors was observed but losers took the lead over gainers by the session’s end.
The investors’ attention was mainly concentrated on financial institutions (27.6 per cent), textile (15.3 per cent), and engineering (10.1 per cent), it added.
Turnover, an important indicator of the market, decreased around 6 per cent to Tk 2,033 crore while it was Tk 2,171 crore a session earlier.
The large paid-up capital-based companies rose by around 10 to 12 per cent on average in the last few days so people are taking profits, according to market analysts.
Bangladesh Autocars topped the gainers’ list, rising 9.94 per cent, followed by Aziz Pipes, Aamra Technologies, Unique Hotels, and Rupali Insurance.
Popular Life First Mutual Fund shed the most, dropping 10 per cent, followed by AB Bank First Mutual Fund, PHP First Mutual Fund, Trust Bank First Mutual Fund, and First Janata Bank Mutual Fund.
At the DSE, 106 stocks rose, 244 declined and 26 remained unchanged.
Stocks of Beximco Limited traded the most, worth Tk 132 crore, followed by LankaBangla Finance, Beximco Pharmaceuticals, SAIF Powertec and IPDC.
The Chattogram Stock Exchange (CSE) also fell yesterday as the CASPI, the general index of the port city bourse, edged down 158 points, or 0.74 per cent, to 20,982.
Among 316 traded stocks, 88 advanced, 213 fell and 15 remained unchanged.
(TDS)
