Stocks extend losses – The Daily Star

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Most shares on the stock markets in Bangladesh ended in the red yesterday, continuing the downward trend for the last several days, largely for lower-than-expected budgetary measures favourable to investors and the gloomy market sentiment.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell for the fourth consecutive day as it lost 30 points, or 0.47 per cent, to end at 6,361.

The DSES Index, which comprises the Shariah-based listed companies, was down 0.51 per cent at 1,387.67 and the DS30 Index, which represents the best-performing shares, fell 0.69 per cent to 2,300.91.

The DSEX, the benchmark index of the Dhaka Stock Exchange, fell for the fourth consecutive day to end at 6,361, but turnover stood at Tk 874 crore, up 9.52 per cent from the previous session

Turnover, an important indicator of the market, stood at Tk 874 crore, up 9.52 per cent from Tk 798 crore a session ago.

Losers took a strong lead over the gainers as out of 382 issues traded, 236 declined, 89 advanced and 57 showed no price movement.

The lacklustre closure of the key index means that the DSEX stretched the continuing stagnant condition of the market, said International Leasing Securities Ltd in its daily market review.

Like the previous session, the trading on the DSE started with a slightly positive note but price corrections in particular stocks pushed the index into the red zone.

Among the sectors, ceramic and textile gained, while travel, leisure, tannery, jute, IT and financial institution took the highest shock.

One of the explanations for the continuous fall of the key index could be that although the corporate tax has been cut by 2.5 percentage points for the listed companies in the proposed budget for the next fiscal year, it might not be easy for them to avail.

In order to qualify for the benefit, all incomes have to be maintained through banking channels alongside expenditures and investments of more than Tk 12 lakh.

Besides, banks, non-banking financial institutions, insurance, tobacco and telecom companies that make up more than 60 per cent of the DSE’s total market capitalisation will not get the benefit as the corporate rate for them has been kept unchanged.

Among the individual companies, Shinepukur Ceramics topped the gainers’ list, rising 9.98 per cent.

Miracle Industries, Monno Fabrics, Meghna Insurance, Khan Brothers PP Woven Bag Industries, JMI Hospital Requisite Manufacturing, Nahee Aluminum Composite Panel, and S Alam Cold Rolled Steels gained between 8 per cent and 9.7 per cent.

One Bank was the worst-performing stock on the day, shedding 5.31 per cent.

Indo-Bangla Pharmaceuticals, Apex Tannery, Renwick Jajneswar, Zeal Bangla Sugar Mills, Al-Arafah Islami Bank, Gemini Sea Food and Paramount Insurance Company suffered significant losses.

Shinepukur Ceramics was the most-traded stock on the day, with its shares worth Tk 70.68 crore changing hands. Other companies that saw higher turnover included JMI Hospital, Anwar Galvanizing, Bangladesh Export Import Company, Monno Fabrics and Provati Insurance.

The Chittagong Stock Exchange also fell on the day.

The CASPI, the prime index of the bourse in the port city, gave up 78 points, or 0.41 per cent, to close at 18,710.

Of the issues transacted, 84 gained, 169 lost, and 39 were unchanged.

Turnover rose 27.88 per cent to Tk 555 crore. It was Tk 434 crore a session earlier.

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