Stock hits nearly 5-month low on post MPS trade
1 February 2015, Nirapad News: Dhaka stocks hit nearly 5-month low on Sunday on the first session after the monetary policy statement (MPS) by the Bangladesh Bank (BB), issued last week.
The broader DSEX of Dhaka Stock Exchange (DSE) sunk by 69.09 points or 1.46 percent to 4654.95, which was nearly 5-month low after September 9, 2014 when the index closed at 4647.43.
Like the general index, the blue-chip DS30 and Shariah DSES plunged to 1723.54 and 1099.45 respectively, with both incurring over 1.0 percent loss to close the day.
Analysts attributed the sharp fall in share prices to the latest MPS, which does not have any specific stimulus for the stock market sans the assurance of continual support like before. The ongoing political uncertainty was also held responsible for the volatility of the stock market.
“Investors gave a sharp retort to the MPS with no addition to the capital market incentives following the month long political unrest,” said Lanka Bangla Securities Limited (LBSL).
The LBSL said market largely shrugged off the promising earnings declared on Sunday mainly by some of the fast-moving consumer goods and pharmaceutical companies as bearish stance continued.
The market also took more cautious stance as the political uncertainty continues. The news about the move of the Bangladesh Securities and Exchange Commission (BSEC) to set performance-based management fees for asset management companies also made investors more watchful.
Textile sector was the worst loser in market capitalisation followed by engineering, IT and NBFI when Lafarge Surma topped the turnover leaders with by Aamra Tech, CNA Textile, GP and Squire Pharma among the top five liquid scrips.
Prices of 247 securities dropped on the day as activities decreased, with trade value declining by 10.60 percent to Taka 184.69 crore and the volume falling by 9.35 percent to 526.20 crore shares.
AIBL1stMF, Libra Infusion, NTC, 2ndICB and ICB1stNRB were the major gainers of the day when Modern Dye, SPCL, 7thICB, Gemini Sea and NFML lost most.