Dhaka stocks end week in the red | The Daily Star
12:00 AM, February 23, 2018 / LAST MODIFIED: 12:00 AM, February 23, 2018

Dhaka stocks end week in the red

Dhaka stocks fell yesterday ending the full week in the red amid low participation of institutional investors.

The fall negated expectation that the central bank's move to extend the deadline for lowering loan-deposit ratio would be reflected by a jubilant participation of investors. Instead, the investors adopted a wait-and-see approach.

The broad index, DSEX, lost 2.05 points to settle at 5,907. The DS30 index, comprising blue-chip companies, fell 3.01 points or 0.13 percent to finish at 2,170 and the DSE Shariah Index ended 3.93 points or 0.28 percent lower at 1,375.

Turnover on the premier bourse dipped to Tk 289.66 crore, the lowest since July 11 last year.

Turnover, the crucial indicator of the market, fell nearly 26 percent yesterday compared to the previous day's Tk 391 crore, according to the Dhaka Stock Exchange (DSE).

Participation of institutional investors was very low as they were observing the market movement, said Khairul Bashar Abu Taher Mohammed, secretary general of Bangladesh Merchant Bank Association (BMBA).

It is unexpected that the central bank's move had not been reflected in the market, he said.

He said there is no other factor except liquidity crisis that kept institutional investors at bay.

Bashar, however, hoped investors would gain confidence soon. On Tuesday, the Bangladesh Bank extended the deadline for banks to bring down their loan-deposit ratio to December 31 from June 30.

The decision was taken following a demand from the Dhaka Stock Exchange Brokers Association and the BMBA.

Market players had reacted positively to the central bank's move, saying the decision would boost daily transaction. But the market plunged on the very first session after the circulation of the central bank's decision. In fact, all four trading days of the week closed in the red.

The DSEX lost 143 points or 2.37 percent in the week, said LankaBangla Securities in its market research.

Market participation went down significantly with turnover averaged Tk 375 crore.

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