Stocks nosedive for third straight day

The Daily Star  September 22, 2020
Star Business Report

Stocks in the premier bourse witnessed a drop for the third consecutive day following a steady rise for over a week.

DSEX, the benchmark index of the Dhaka Stock Exchange, shed 76 points, or 1.50 per cent, yesterday to stand at 5,012.12.

“But corrections are the beauty of a good stock market,” according to a merchant banker.

The index underwent corrections in the last few days, not long after the market had risen to a sustainable position, he said.

DSEX rose by 152 points during September 10-16 but dropped 103 points in the last three days, as per DSE data.

The market is on the right path but a few junk stocks are overvalued, so the investors need to be careful, according to a stock broker.

If an investor falls in hot water and incurs losses after investing in junk stocks, then it will negatively impact the market, he said, adding that the regulator should be cautious about this and focus on promoting companies that perform well.

Turnover, a major indicator for the market, dropped 11 per cent to Tk 977.58 crore yesterday at the Dhaka bourse.

Of the total 355 traded stocks, 82 advanced, 259 declined and 14 were unchanged, according to DSE data.

The DSE’s turnover list was topped by DBH, which traded shares worth Tk 26.63 crore, followed by Beximco, Rupali Insurance, Beximco Pharmaceuticals, and Purabi General Insurance.

ICB Employees Mutual Fund topped the gainers’ list with a 10 per cent increase followed by SEML IBBL Fund, ICB Third NRB, VAML Fund, and Miracle Industries.

Provati Insurance shed the most, plunging 10 per cent followed by Peoples Insurance, Republic Insurance, Agrani Insurance and Shyampur Sugar Mills.

The Chattogram bourse also witnessed a reduction in its benchmark index.

The CSCX, the benchmark index of the Chittagong Stock Exchange, dropped 126 points, or 1.44 per cent, to 8,597.43.

Of the total 286 stocks, 85 rose, 184 fell and 17 remained unchanged.

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