DGEN sinks to one-month low

Stocks plunged on Thursday with benchmark index DGEN sinking to more than one month low.   The market experienced heavy profit taking sale pressure combined with panic sale-off because of latest dive in stock prices, dealers said.    The benchmark DSE General Index, DGEN, ended at 4,405 with a steepest fall of 163 points or 3.6%. The fall extended for the third straight session and lowest since June 18 this year.  The free float-based benchmark, DSEX, ended at 4,224, shedding 134 points or 3.2%. The blue chip index DS30 dropped 80 points or 5% to 1,519.   The Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, declined 228 points to 8,089.   Participation in trading also declined sharply as the total turnover at DSE came down to Tk6bn, down 28.8% over previous session’s turnover value.  Out of 288 issues traded, 41 gained, 225 declined and 22 remained unchanged.   “Continuation of heavy sale-off throughout the session leveled down DGEN to the psychological level of 4,400 points,” said IDLC Investment in its daily market analysis.    It said dwindle in large cap scrips further stretched the declining tone. Additionally, frequent selling spree alongside the profit-taking accelerated plunging the indices badly, it said.  Scrip wise swings were heavily observed as 93 out of 288 traded scrips lost more than 4% of their price.    “Investors seemed to be more panicked after previous session’s downhill. In line with this, participation declined,” said IDLC.    None of the sectors gained. Among the major sectors, telecommunications and power were the big losers as they were 5.41% and 5.26% down respectively. Non Banking Financial Institutions declined 3.25%, pharmaceuticals 3.19%, and banks 0.51%.   Selling rush by the investors for the second consecutive trading session has put the bulls into back foot, according to Lanka Bangla Securities.  It said once favored oil marketing companies took heavy beating with other large capitalised stocks declined with equal velocity.    Meghna Petroleum, a state-owned petroleum distribution company, was the most traded stock of the day with Tk634m changing hands, accounting for 10.4% of the total market turnover. It was followed by Bangladesh Submarine Cable Company, Padma Oil, Jamuna Oil, Grameenphone, Titas Gas, Active Fine and Olympic Industries.