Stocks fall for second day

Stocks in Bangladesh yesterday stretched their losing streak to two days consecutively as investors grappled with the fallout of Moody's recent downgrade of the country's foreign credit rating.

The US-based credit rating agency also revised its long-term economic outlook for Bangladesh from stable to negative.

As a result, the market saw thin participation of investors, who cautiously traded selective shares to make short-term gains amid price fluctuations.

Like the previous trading session, both the Dhaka and Chattogram bourses witnessed massive sale requests as the investment climate has remained unresponsive.

The DSEX, the broad index of the Dhaka Stock Exchange (DSE), plunged by 0.98 percent from the day prior to close at 5,146 points, indicating a downtrend in the market.

The other two indexes of the country's premier bourse saw the same as the DSES, which represents the performance of Shariah-compliant companies, receded by 0.18 percent to 1,149 points.

Similarly, the DS30, which reflects the condition of blue-chip stocks, fell by 0.99 percent to 1,899 points.

Out of the 392 issues traded at the DSE yesterday, 110 saw their prices rise while that of 228 closed lower and 54 did not see any movement.

The DSE's daily turnover, which indicates the collective value of shares traded, stood at Tk 302 crore, down 16.97 percent compared to the previous day.

The banking sector dominated the turnover chart, accounting for 17.84 percent.

Block trades, meaning high-volume securities transactions that are privately negotiated and executed outside the open market, contributed another 4.6 percent to the turnover.

NRB Bank Limited was the most-traded stock, registering turnover of Tk 15.0 crore.

All the sectors that comprise companies with high market capitalisation, which refers to the value of their outstanding shares, posted negative performances, according to BRAC EPL Stock Brokerage.

The pharmaceuticals sector experienced the largest loss of 1.79 percent followed by Food and Allied (0.76 percent), banking (0.54 percent), non-bank financial institutions (0.52 percent), telecommunication (0.37 percent), engineering (0.26 percent), and fuel and power (0.14 percent).

Sector-wise, information technology, services and real estate, and general insurance were the three that closed in positive territory while ceramics, pharmaceuticals, and textiles became the top three that closed in negative territory.

At the Chittagong Stock Exchange (CES), the CSE All-Share Price Index (CASPI) saw a similar trend as it slipped by 1.13 percent to close at 14,419 points.

At the CSE, shares of companies like Square Pharmaceuticals, BRAC Bank, BAT Bangladesh, Renata, Islami Bank, Eastern Bank, Robi Axiata, Alif Industries, Al-Arafah Islami Bank and Jamuna Bank suffered losses.

Drug maker Square Pharmaceuticals alone contributed 26.56 points to the fall.

Investors showed the most interest in shares of Beximco Pharmaceuticals, National Bank, Prime Bank, Genex Infosys, BSRM, Shahjalal Islami Bank, Bangladesh Submarine Cables, Al-Haj Textile, Orion Pharma and Olympic Industries.

However, none of these companies saw doubt-digit growth in their share values, with Beximco Pharmaceuticals gaining the most by adding only 1.52 points.