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Dhaka Tribune

Stocks edge lower amid volatility

Update : 29 Apr 2013, 01:29 PM

Share prices on the country’s both bourses-- Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) –- ended in the red on Monday.

The market moved between positive and negative marginally throughout the session, scaring away investors from fresh investments. 

The benchmark DSE General Index, DGEN, closed at 3617, shedding slightly 3.54 points or 0.09%.  The newly introduced benchmark index, DSEX, fell 9.72 points or 0.28% to 3444.

The Chittagong Stock Exchange Selective Category Index, CSCX, was down 31 points to 6789.

Gainers took a marginal lead over the losers as out of 276 issues traded, 139 advanced, 105 declined and 32 remained unchanged.

Flatness returned in the bourse as strong resistance helped DGEN avert setting another bottom. With DGEN lurking near historical low, investors’ perceived prices appears lucrative after fall in the previous day, and stepped in accordingly, according to the IDLC Investment daily market analysis.

Turnover improved a bit as it stood at Tk1.35bn, up 19.64% over the previous session.

“But sentiment is still depressive amid worries in the socio-political front,” said IDLC.

Positive Q1 declarations seemed forming ripples throughout the bourse as witnessed by some scrips - Samorita Hospital that gained 8.42%, GHAIL 8.75%, and GBB Power 4%.

Telecommunications and pharmaceuticals made good advances among major sectors while engineering and fuel and power sectors remaining largely on the slide.

Moreover, micro-cap companies continued to demonstrate highest movement in the flat but volatile market.

“Prospective investors are asking for higher return as recent political uncertainty has reduced the visibility of earnings growth of companies,” said Lanka Bangla Securities.

It said some of the cash paying companies are trading at such price that their dividend yield almost equals the interest rates of time deposits.

Newly listed companies posted strong gains. Institutional investors, especially mutual funds are still keeping most of their portfolio in time deposit, despite the market appears to be cheapest in recent years, it added.

RN Spinning became the top traded company followed by United Airways, Beximco and Bangladesh Submarine Cable Company.



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