Economic Reporter :
Dhaka stocks dropped for the fourth day on Thursday as investors weighed impact of fuel oil price hike on the economy.
DSEX, the key index of the Dhaka Stock Exchange, lost 0.51 per cent, or 32.13 points, to close at 6,148.76 points on Thursday.
The DSEX lost 163 points in the past four sessions.
Before the four-day loss, the DSEX had gained 332 points in five sessions on the back of floor price restriction.
The market went through a volatile session on Thursday as investors continued share sales amid the current economic concerns, market operators said.
The market has been in the doldrums for the past six months due to rising inflation, record trade deficit, energy crisis, continued fall in foreign exchange reserve and currency volatility, they said.
However, the floor price restriction imposed by the Bangladesh Securities and Exchange Commission on July 28 prevented the index from falling significantly on Thursday, they said.
But, the volume of trading of shares continued squeezing as more and more companies got stuck at the floor prices.
Out of the 382 issues traded on Thursday, 166 declined, 96 and 116 remained unchanged on the DSE.
The turnover on the DSE plunged to Tk 583.76 crore on Thursday compared with that of Tk 799.48 crore in the previous session.
Investors’ concern intensified after a sudden surge in fuel oil prices as it is feared to escalate inflationary pressure, they said.
The government on August 5 revised the prices of all fuel oils at the consumer level, raising the prices of petrol, diesel, octane and kerosene by almost 50 per cent.
The media reported that finance minister AHM Mustafa Kamal on Wednesday said that the fuel oil price hike would increase inflation in the country.
The acute shortage of dollars raised the price of the greenback to Tk 119 on Wednesday on the informal or kerb market, which became a key concern for the economy, the market operators said.
EBL Securities in its daily market commentary said, ‘The equity indices of the prime bourse held its bearish vibe for another session that resulted from the investors’ concern regarding the gloomy outlook of the overall economy.’
‘The economy of the country has been suffering from high inflation and a significant depreciation of the local currency. Investors have become much worried not only about their living costs but also about the future of the profitability of the listed companies,’ it said.
The DS30 index dropped by 16.56 points to finish at 2,194.39 points, and the DSE Shariah index shed 8.7 points to close at 1,345.71 points.
BEXIMCO topped the turnover chart with its shares worth Tk 83.51 crore changing hands.
Intraco Refueling, Orion Infusion, Malek Spinning, Sea Pearl Beach Resort, Grameenphone, Coppertech Industries, Olympic Industries and ACME Pesticides were the other turnover leaders. SEML FBLSL Growth Fund was the day’s best performer, posting a gain of 11.36 per cent, while Jute Spinners was the worst loser, shedding 5.24 per cent.
