Dhaka stocks declined sharply on Wednesday after increasing in the previous trading session as the unexpected profit fall in two companies under the bank and cement sector made investors dissatisfied. The key index of Dhaka Stock Exchange, DSEX, declined to 5,170.15 points, shedding 1.21 per cent or 63.66 points. Market operators said that investors dissatisfied by the quarterly earning of a bank and cement company— Al-Arafah Islami Bank and Heidelberg Cement— sold shares in an apprehension that the profit of other companies of those sectors might go through the same pattern.
Al-Arafah Islami Bank made Tk 22.68 crore loses in the July to September quarter against its profit of Tk 62.65 crore in the same period in the previous year.
While for Heidelberg Cement, a multinational company, profit declined to Tk 19.55 crore in July to September quarter compared with its profit of Tk 37.39 crore in the same period of the previous year.
Banking and Cement sectors were down by 1.5 per cent and 1 per cent respectively on the day.
Along with the banks and cement companies, share prices of multinational companies also declined as investors were apprehending the earning fall of such companies, operators said.
Besides, World Bank’s Tuesday’s comment on stock market was among other reasons behind investors increased share selling, they said.
DS30, the blue-chip index of the bourse, fell by 1.16 per cent, or 23.05 points, to close at 1,948.99 points on Wednesday.
The Shariah index of DSE, DSES, declined to 1,220.54 points, shedding 1.04 per cent or 12.94 points.
Turnover of the bourse, however, increased to Tk 722.55 crore on the day compared with that of Tk 694.23 crore in the prvious trading session.
Of the 302 shares and mutual funds traded on the day, 76 advanced, 205 declined and 21 remained unchanged.
‘On Wednesday, the benchmark index lost 63.67 points as investors remained cautious about Q3 corporate earnings,’ LankaBangla Securities said in its daily market analysis.
‘Unexpected fall in earnings of a bank and a cement company might have taken a toll on the market,’ it said.
‘Investors remained cautious on the day and selling pressure was observed throughout the trading session,’ LankaBangla said.
‘Equity market continued absorbing natural sell pressure, shrinking all the indices,’ IDLC Investments said in its daily market commentary.
‘Besides, investors continued re-balancing their portfolio on the expectation of upcoming quarterly earnings,’ said IDLC.
RSRM Steel Re-rolling Mills led the turnover chart as its shares worth Tk 41.82 crore changed hands.
Khulna Power Company, MJL Bangladesh, Titas Gas, Square Pharmaceuticals, Heidelberg Cement, Beximco Pharma, Grameenphone, BEXIMCO and Golden Son were among other turnover leaders.
Shahjibazar Power Company gained the most as its share prices rose by 9.91 per cent, while Appollo Ispat Complex lost the most, shedding 9.76 per cent.
-With New Age input
