Stocks end flat amid political jitters

Stocks ended flat for the second day yesterday as investors became cautious over trading amid political jitters.

DSEX, the benchmark general index of the Dhaka Stock Exchange, closed at 4,956.09 points, after gaining 4.40 points or 0.09 percent.

DSES, the shariah index of the premier bourse, finished the day at 1,174.35 points, after falling 0.54 points or 0.05 percent.

The market closed flat amid thin participation of investors due to political volatility, said IDLC Investments.

Turnover, the most important indicator of the market, fell 15.2 percent to Tk 331 crore, compared to the previous day.

However, positive economic expectation reinforced by the World Bank’s optimistic growth forecast boosted investor confidence, the investment bank said.

The WB has forecast 6.2 percent economic growth this fiscal year, up from last year’s 6.1 percent, supported by continued robust remittances and recovery in private consumption.

The growth forecast is based on the assumption of continued political stability, as witnessed throughout 2014, according to WB.

But the country is going through a new political instability due to the BNP-led 20-party alliance’s demonstration for fresh election.

LankaBangla Securities said tension over the countrywide strike affected the gain in early trading.

Though political fracas dampened the market sentiment, banking stocks led the gain until the close of trading, the stockbroker said.

Banking stocks were mostly green with a 0.54 percent gain in market capitalisation, it said.

Food and allied gained 0.74 percent followed by tannery 2.65 percent and textile 0.77 percent.

Losers beat gainers 136 to 127 with 47 remaining unchanged on the Dhaka bourse.

Bangladesh Building Systems was the turnover leader with 32.18 lakh shares worth Tk 18 crore changing hands followed by IDLC Finance, Saif Powertec, Titas Gas, Western Marine Shipyard, Grameenphone and Desco.

Wata Chemicals was the highest gainer of the day, as it posted a 6.59 percent gain, while Zeal Bangla Sugar Mills was the worst loser, plunging by 7.22 percent.