Indices slide amid sell-offs in blue-chip stocks

Stocks slid today (7 October) as nearly 70% of issues, including several large-cap and blue-chip ones, faced sell-offs.

With a 46.63-point decline, the DSEX — the benchmark index of the Dhaka Stock Exchange — fell for the second consecutive session as investors focused on liquidating funds.

BRAC EPL Stock Brokerage said that BRAC Bank, Square Pharmaceuticals, BAT Bangladesh, City Bank, and Grameenphone were the top five stocks dragging the index down.

Meanwhile, Social Islami Bank, First Security Islami Bank, BSRM Ltd, Khan Brothers PP Woven Bag Industries, and Al-Arafah Islami Bank were the top five index pullers.

Meanwhile, two banks — Global Islami Bank and First Security Islami Bank — topped the gainer chart with a 10% rise each, the highest single-day gain, while insurance stocks dominated the gainers' list yesterday, according to DSE data.

The Bangladesh Bank has planned to merge five Islami banks into a single entity as the lenders continue to struggle with a deepening crisis.

Amid the merger concerns, the share prices of the five banks — First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and Export Import Bank of Bangladesh — declined by Tk928 crore in market capitalisation over the three months through September.

However, turnover — one of major indicators of the market—surged by 7% to Tk787 crore, while market capitalisation, the current value of a publicly traded company, dropped Tk7,044 crore to Tk7.22 lakh crore.

According to DSE data, despite the market opening on a positive note, late-hour sell-offs — mainly in blue-chip stocks — dragged the indices into the red.

The positive momentum continued until around 11:30am. However, as sell-offs intensified later in the session, the indices continued to decline until trading closed.

Due to the sell-offs, the DSEX dropped by 46 points to 5,377, while the DSE Shariah Index fell by 10 points to 1,161. The DS-30, the blue-chip index, slipped by 24 points to 2,064, DSE data showed.

Of the 401 stocks traded yesterday, 282 or 70% declined in price, 85 advanced, and 34 remained unchanged.

Among the 224 traded stocks in the A category — those paying over 10% dividend — 61% declined, while 87% of B category stocks (paying below 10% dividend) and 76% of Z category stocks saw their prices fall.

Shares price of Global Islami Bank surged by 10% to Tk2.2 each yesterday, making the bank top gainer, followed by First Security Islami Bank by 10% to Tk3.3 each, Sena Insurance by 9.88% to Tk58.9 each, Northern Insurance by 9.84% to Tk34.6 each and Meghna Insurance by 9.69% to Tk28.3 each. 

While Bangladesh Industrial Finance Company topped on the loser list as its shares price fell by 8.10% to Tk3.40 each, followed by ICB Islami Bank by 7.40% to Tk2.5 each, People Leasing by 7.14% to Tk1.3 each, Fareast Finance by 6.25% to Tk1.5 each and Uttara Finance by 6.15% to Tk12.2 each.