DSEX falls to two-month low as third quarter earnings weaken

Stocks fell in the fourth consecutive session with key index DSEX slipping to two-month low as weak sentiment deepened further over weakening third quarter earnings outlook. The benchmark index of Dhaka Stock Exchange DSEX lost about 13 points or 0.7% to 4,592—its lowest since September 6 this year. The DS30 index, comprising blue chips, shed only over 1 point to 1,733. The DSE Shariah Index, DSES, witnessed fractional loss of 0.7 point to 1,100. The Chittagong Stock Exchange Selective Category Index CSCX shed 8 points to 8,605. Volume of trade also suffered as the DSE turnover in value went below Tk400 core after three months. It stood at Tk389 crore, down 15% compared to Tk457 crore of the last session. Share prices of Doreen Power Generations and Systems saw a sharp fall of 9.6% after Bangladesh Securities and Exchange Commission started to investigate an unusual price hike in its shares. Its share prices almost doubled in just two weeks. Investors taking cue of regulator probe released their holdings of the Doreen Power, making its most traded stocks. It accounted for 7% of the total DSE trade. Losers beat gainers as out of 321 issues traded, 122 closed higher, 161 lower while 38 remained unchanged. “Investors weak sentiment intensified because of continuous fall of the market coupled with weakening earnings outlook that poured in the market now,” said a trader. Telecommunications posted the highest loss of over 1.4%, extending its losing streak for the second straight session. Power sector was down about 1%, followed by banks 0.7% and non-banking financial institutions 0.6%. Pharmaceuticals was the highest gainer with a marginal rise of 0.35%. Engineering sector that posted the highest loss in previous session gained marginally. After Doreen, other top turnover leaders included MJL Bangladesh, Argon Denim, Square Pharmaceuticals, Fortune Shoes and BD Thai Aluminum.