Stocks drop for 3rd day as large investors wait for cheap shares

Dhaka, July 4 (New Age): Dhaka stocks declined for the third trading session on Thursday despite a positive beginning as most of the institutional investors remained on the sideline after year closing. The key index of the Dhaka Stock Exchange, DSEX, declined to 4,436.20 points, shedding 0.68 per cent or 30.40 points. Operators said that the institutional investors’ low presence at the trading floor kept the market negative for another trading session despite media reports of increased operating profit of most of the banks in the first half of the calendar year. On the other hand, data of increased foreign investment during the month of June failed to boost investors’ participation on the trading floor, they said. They also said that institutional investors might be waiting to buy shares at cheaper prices after half yearly closing share sell-offs. Besides, retail investors were mostly focused on some specific shares due to recent increase in share prices based on rumour, they said. The government’s move to scrape the proposed 3-5 per cent gain tax imposition in the budget also failed to keep the market afloat, they said. DS30, the blue-chip index of the bourse, fell by 0.94 per cent, or 15.45 points, to close at 1,621.86 points. The turnover of the bourse increased to Tk 261.85 crore compared with Tk 247.85 crore in the previous trading session. Of the 298 shares and mutual funds that changed hands, 117 advanced, 136 declined and 45 remained unchanged. ‘In a snapshot, DSEX declined by 30 points and went below 4,450 points mark after three sessions,’ said IDLC. Appollo Ispat Complex led the turnover chart as its shares worth Tk 35.14 crore changed hands, with its share prices increasing the most by 9.02 per cent. BEXIMCO, Lafarge Surma Cement, The Peninsula Chittagong, Grameenphone, United Airways, Square Pharmaceuticals, Bangladesh Submarine Cable Company, MJL Bangladesh and Al-Haj Textiles were among other turnover leaders. Progressive Life Insurance lost the most on the day shedding 4.49 per cent.