Dhaka stocks declined for the third day on Wednesday as investors were selling shares as precaution to avoid massive losses if the market reacts negatively to the 2014-15 fiscal year budget to be announced today. DSEX, the benchmark general index of Dhaka Stocks Exchange, lost 0.40 per cent or 17.78 points, to close at 4,401 points. The DSEX lost 47 points in the last three trading sessions.
Turnover of the bourse, however, increased to Tk 408.60 crore on the day from the previous day’s turnover of Tk 392.27 crore.
Losers continued to outnumber the gainers on Wednesday as of the 297 issues traded, 201 declined, 74 advanced while 22 issues remained unchanged.
Market operators said investors were selling shares to minimise risk ahead of the budget.
‘Investors are selling shares to be on the safe side ahead of the budget. So that if the market turn negative following budgetary measures than they would loss less,’ said a stockbroker.
He said some large cap shares were holding the market from massive fall.
‘Today’s [Wednesday’s] market movement was indicating risk reduction strategy by the mass market participants just before the upcoming budget declaration. Activities continued to remain concentrated, as top 6 stocks accounted for 33 per cent of total turnover,’ said IDLC Investment in its daily market commentary on Wednesday.
DS30, the blue-ship index of the bourse, lost 0.01 per cent, or 0.27 points, to close at 1,625.04 points.
The Shariah index of the bourse, DSES, however, inched up by 0.51 per cent or 5.19 points to close at 1,008.52 points.
Among the major sectors, only telecommunication posted gain of 1.55 per cent while banks shed 1.77 per cent and food and allied declined by 1.62 per cent.
Non-bank financial institutions lost 1.20 per cent, pharmaceuticals 0.78 per cent and power declined by 0.25 per cent on the day.
Grameenphone topped the turnover leaders on Wednesday with its shares worth Tk 38.66 crore changing hands.
The other turnover leaders were Lafarge Surma Cement, BSRM Steel, MJL BD, Meghna Petroleum, Heidelberg Cement, Delta Life Insurance, Square Pharmaceuticals, Mithun Knitting and BSCCL.
-With New Age input
