Dhaka stocks fall as investors stare at city polls affairs



Dhaka stocks
Dhaka stocks returned to the negative zone on Wednesday after a bull run in the previous trading session due to profit-taking share sell-offs in late trading amid an apprehension that the political situation might worsen again with the cancellation of mayoral candidature of two BNP-backed aspirants by the Election Commission.
The key index of Dhaka Stock Exchange, DSEX, fell by 0.38 per cent, or 17.37 points, to close at 4,513.10 points.
The turnover, a key indicator of the market, also declined to Tk 359.71 crore on the day compared with that of Tk 452.72 crore in the previous trading session. The turnover at the bourse had hit its four-month high on Tuesday following talks about formation of a forum to sort out the problems of the capital market-related entities.
Market operators said the market began the day on a positive note but failed to sustain the vibe amid profit-taking share sell-offs in late trading session.
Besides, investors were apprehending that the rejection of candidature of Abdul Awal Mintoo for the mayoral post of the Dhaka North City Corporation by the Elections Commission on Wednesday would be a factor in making the BNP’s final decision on its participation in the city corporation polls, they said.
Investors who were on the sidelines for the last couple of months have become active recently on the trading floor amid expectation that the political situation would ease with the BNP-backed candidates duly submitting nomination papers to the Election Commission, operators said.
The Shariah index of the bourse, DSES, fell marginally by 0.40 per cent, or 4.46 points, to close at 1,098.66 points on the day.
DS30, the blue-chip index of the DSE, declined to 1,719.88 points, shedding 0.49 per cent or 8.59 points.
‘The DSEX fell by 17 points today [Wednesday], reversing the day’s robust start,’ IDLC Investments said in its daily market commentary.
It said impatience and uncertainty on the part of the investors could be the main catalysts behind the current zigzag move in the index.
‘Investors maintained their interest on particular stocks and sectors as pharmaceuticals captured 19.2 per cent of the total turnover,’ said IDLC.
‘Today’s trading session started with a positive mood, but at the end of the day it ended up in the red territory as prices of most of the large cap stocks declined on the day,’ LankaBangla Securities said in its daily market analysis.
MJL Bangladesh led the turnover leaders on the day with its shares worth Tk 22.31 crore changing hands.
Square Pharmaceuticals, Grameenphone, ACI Limited, Shasha Denims, BEXIMCO, Lafarge Surma Cement, Saif Powertec, Khulna Power and IFAD Autos were among the other turnover leaders.

AB Bank 1st Mutual Fund gained the most on the day with a 9.09-per cent increase in its share price, while Jute Spinners was the worst loser on the day, shedding 9.62 per cent. (Source: New Age, April 2, 2015)