Stocks keep sliding on inflation concerns

Dhaka stocks declined for the third straight session on Tuesday as investors worried the Bangladesh Bank may not be able to curb inflation in the years ahead taking cue from the adverse macroeconomic front.

Foreign portfolio investors turned relentless sellers of local equities on emerging global risks and wild currency swings, dealers say.

The DSEX moved in a range of 51 points, showing an intraday high of 6,361 and a low of 6,310. At close, it was down 45 points or 0.71 per cent to close at 6,311.

Among other indices, the Shariah-based DSES index shed 9.11 points or 0.65 per cent to settle at 1,378 while blue-chip comprising the DS30 index fell 19.15 points or 0.82 per cent at 2,295.

Out of the 382 issues traded, 57 advanced, 282 declined, and 43 remained unchanged.

“The equity indices of the Dhaka Stock Exchange are in the doldrums as a result of investors’ furious attempts to dodge the current bearish trend due to their unease with the country’s adverse macroeconomic situation,” said the EBL Securities in a note.

Foreign investors’ sell-offs against the backdrop of the declining Taka raised investor fear, and the possibility of monetary tightening by the central bank to contain increasing inflation might further erode investor confidence in the stock market, added the note.

Besides, bourses observed a further decline in participation, while turnover has decreased by 11.7 per cent and stood at Tk 726 crore as against Tk 822 crore in the previous session.

On the sectoral front, Bank (19.8 per cent) issues exerted the highest turnover followed by Pharma (13.4 per cent) and Textile (11.6 per cent) stocks.

All of the sectors displayed dismal returns, out of which Paper (-1.9 per cent), Services (-1.8 per cent), and Ceramic (-1.8 per cent) exerted the most negative returns on the bourse on Tuesday.

Beximco was the most-traded stock with shares worth Tk 38 crore changed hands, followed by Anwar Galvanizing Tk 27 crore, Fu-Wang Food Tk 23 crore. Imam Button was the top gainer, posting a 10 per cent rise while Tallu Spinning Mills was the worst loser, falling 2 per cent.

The port city bourse, CSE, also, settled in red terrain. The selected indices (CSCX) and All Share Price Index (CASPI) have declined by 83.5 and 137.4 points respectively.