Dhaka stocks declined for the second trading session on Monday with the key index of Dhaka Stock Exchange, DSEX, dropping to its one-month low as investors remained watchful amid the general strikes being enforced by the Bangladesh Jamaat-e-Islami.
Jamaat is enforcing the strikes in protest at the punishment handed down to its leaders by international crimes tribunals.
Following the verdicts, Jamaat in three phases declared five-day strike, including all four working day of the week.
The DSEX lost 0.78 per cent, or 40.07 points, to close at 5,065.14 points, lowest after 5,074.30 points in September 30 this year.
Brac EPL Investment managing director Khaled Yusuf Farazi told New Age, ‘We cannot deny the impact of political tension on any short of business. So, there might be some sort of political tension among the investors that put impact on the capital market in the last couple of trading sessions.’
Speaking about the recent market correction, Farazi also said, ‘Correction in share prices after a certain period of rally is very much normal and nothing to be worried about as all other indicators are now favourable for the capital market.’
Former Bangladesh Merchant Bankers Association president Mohammad A Hafiz said that big investors reduced participation on the trading floor and that might be the main reason for the downtrend at the market after the recent rally.
Political tension might have little impact on the capital market, he said.
Turnover at the bourse declined to Tk 680.92 crore on Monday compared with that of Tk 732.56 crore in the previous trading session.
‘Investors remained cautious as country is facing political deadlock owing to 72-hour hartals in this week,’ LankaBangla Securities said in its daily market analysis.
Banking stocks were among the major laggard with a 1.20-per cent fall in the market capitalisation followed by NBFI 1.10 per cent and tannery 0.7 per cent.
DS30, the blue-chip index of the bourse, closed at 1,893.79 points, shedding 1.26 per cent or 24.29 points.
The Shariah index of the bourse, DSES, fell by 0.79 per cent, or 9.62 points, to close at 1,195.10 points on the day.
Of the 308 shares and mutual funds traded on the day, 131 advanced, 147 declined and 30 remained unchanged.
Western Marine Shipyard led the turnover leaders on the day with its shares worth Tk 37.29 crore changing hands.
Keya Cosmetics, Khulna Power Company, Grameenphone, Summit Power, Summit Purbanchol Power Company, Saif Powertec, Khulna Printing and Packaging, Shahjibazar Power Company and MJL Bangladesh were among the other turnover leaders.
Prime Islami Life Insurance gained the most with a 10-per cent rise in its share price, while Saif Powertec lost the most, shedding 7.07 per cent.
-With New Age input
