Stocks end flat as investors stay wary

Investors’ reluctance to inject fresh funds into markets left stocks flat yesterday, as investors remained wary of the economic fallout from the drawn-out political deadlock.

Political unrest took a heavy toll on the Dhaka Stock Exchange as its prime index — DSEX — hit a four-month low on Sunday. The market gauge closed at 4,708.33 points, after shedding 8.43 points or 0.18 percent yesterday.

The shariah index of the Dhaka bourse, DSES, fell 3.32 points or 0.29 percent, to close at 1,110.52.

The stock market started feeling the pinch of the nonstop blockade, enforced by the BNP, which has persisted for the last 21 days, as turnover fell amid poor market participation.

Turnover, the most important indicator of the market, declined 8.5 percent to Tk 204 crore, compared to the previous day.

The political situation has kept getting messier and is choking the economic system. Naturally, investors are looking around, watching out for the upcoming monetary policy statement, and to understand the central bank’s response, said IDLC Investments.

Of the 307 issues that traded on the DSE, 129 advanced, 131 declined and 47 remained unchanged.

Among the major sectors information technology gained 1.62 percent in market cap followed by bank’s 0.75 percent, pharma 0.47 percent and non-bank financial institutions 0.39 percent.

A total of 0.66 lakh trades were executed with 6.08 crore shares and mutual fund units changing hands on the Dhaka bourse.

C&A Textiles became the top turnover generator of the day with 65.85 lakh shares worth Tk 17.13 crore being traded, followed by Brac Bank, Grameenphone, National Feed Mill and Altex Industries.

Exim Bank First Mutual Fund was the highest gainer of the day with an 8.95 percent increase, while Northern Jute Manufacturing Company was the worst loser, plunging by 8.73 percent.