Stocks fall after three-day rally

Bangladeshi stock indices fell yesterday after a three-day rally last week as investors remained cautious in stock trading, trying to wait for companies to report financial results before taking any major steps.

Investors were optimistic about the return of good governance as the caretaker government implemented a series of measures aimed at reforming the entire financial sector and the capital market in particular.

The Dhaka Stock Exchange (DSE) index, DSEX, fell 14.74 points or 0.26 per cent from the previous day to close at 5,711.

Meanwhile, DSES, an index representing companies operating in accordance with Sharia principles, rose by 1 point, or 0.08 percent, to 1,246.

The DS30 blue-chip index fell 15.22 points, or 0.72 percent, to 2,085.

On the Chittagong Stock Exchange, the CASPI, a broad index of the city’s stock exchange, fell 21.30 points or 0.13 percent to close at 16,118.

Of the stocks that changed hands on the DSE, 169 stocks rose, 182 ended the day in the red and 46 stocks saw no price movements.

Turnover on the DSE, or the total value of shares traded on the day, fell 8.79 per cent to Tk 669 crore.

The pharmaceutical sector had the largest share in daily arrivals, at 14.25 per cent.

Block trades, or transactions in high-value securities that are negotiated and concluded privately, contributed another 5.6 percent to the increase.

Linde Bangladesh was the most traded company with a turnover of Tk 42.3 crore.

According to BRAC EPL Stock Brokerage’s daily market report, most sectors that account for a large share of market capitalization, or the total value of a company’s shares traded, posted negative results.

The largest decline of 1.35 per cent was recorded by the food and related industries, followed by pharmaceuticals (0.91 per cent), non-banking financial institutions (NBFI) (0.82 per cent), banks (0.69 per cent) and fuels and energy (0.18 per cent).

However, telecommunications grew by 0.35 per cent and engineering by 0.92 per cent.

Among sectors, tourism and recreation, paper and printing, and life insurance were the top three sectors to end the day on a positive note.