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Dhaka Tribune

Banks drag stocks down

Update : 02 Mar 2014, 06:28 PM

Stocks fell yesterday, pulled down by market bellwether banks that shed more than 3% as dividend declarations failed to attract investors. 

The market opened positive in the morning but selling pressure on banking stocks has sent the market to the negative territory.

The benchmark DSEX was down 52 points or 1% to 4,749, extending losing streak for the third consecutive session.

Shariah DSES index saw fractional loss of 0.2 point to 1,002. The blue-chip comprising DS30 ended at 1,702 with a marginal gain of 9 points or 0.6%.

The Chittagong Stock Exchange Selective Category Index, CSCX, declined 95 points to close at 9,191. Banks lost the most going down by 3.2% with dividend declarations of banks pouring in the market. It was followed by cement that was down 1.4%, non-banking financial institution 1.2% and engineering 0.6%.

Fuel and power, telecommunications and pharmaceuticals were the positive performers. Marico Bangladesh gained an impressive over 17% following its third interim dividend declaration of 500% for the year ended March 2014.

Much of the interest was in the blue chip stocks which somehow helped the blue chip index to hold firmly to its roots.

Participation in trading declined with the DSE turnover standing at Tk574 crore, a decrease of 11% over the previous session.

“A stabbing tumble in large cap stocks closed the index surprisingly down,” said Lanka Bangla Securities in its market analysis.

It said the assessment of the recent bite can be the outbreak of arrogant consolidation in market.

Though annual declaration of bank came out with better than expected earnings, investors eyes have deviated to the technical strength of the stocks which provided an emotional reset in market to take some of the starch out of the bulls, it said.

Scrip-wise swings prompted market volatility, with 85 scrips showing more than 3% movements.

Zenith Investment said the Dhaka bourse continues to show cautious tone, as stocks get eroded from the massive selling pressure of traders.

In this downtrend, brewing tension among investors is visible, while they wait for signs of recovery and the perfect time to penetrate.

Grameenphone was the most traded stocks worth Tk32 crore changing hands, followed by Olympic Industries, Meghna Petroleum, Padma Oil, Square Pharmaceuticals, Heidelberg Cement and Bangladesh Submarine Cable and Company Ltd. 

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