Stocks slump as investors seek refuge in Beximco

Dhaka stocks fell sharply yesterday with a trend of investors flocking to Beximco Group shares.

Over the past few weeks, the investors have showed interest mainly in Beximco shares. They showed the least interest in the banking sector, which accounts for more than 50 percent of total market capitalisation, market analysts said.

Three Beximco Group companies were top three turnover leaders on Dhaka Stock Exchange yesterday.

"Many investors are offloading their stakes in other sector companies and putting the money in Beximco shares on expectations of minimising their losses from the recent slump,” said a merchant banker.

Too much attention to Beximco shares has distorted the prices of other shares, he said, adding that profit-taking sales are part of the reason behind the bearish trend.

The benchmark DSE General Index dropped 80.87 points, or 3.02 percent, to 2,596.31 points. The DSE All Share Price Index also declined by 62.99 points, or 2.85 percent, to 2,147.04 points.

The market looked bearish from the beginning except a slight gain after 30 minutes of trading. The market lost at a prolonged but steady rate throughout the day.

Most securities traded down on the DSE. Of the 246 traded issues, 33 advanced, 210 declined and three remained unchanged.

A total of 2,54,83,728 shares worth Tk 321.39 crore changed hands on the premier bourse.

Shinepukur Ceramics topped the turnover leaders on the DSE with 30,72,000 traded shares worth Tk 35.82 crore. The other turnover leaders were Beximco, Beximco Pharma, Summit Power, Titas Gas, BSRM Steels, Grameen Mutual Fund One: Scheme Two, Uttara Bank, AIMS 1st Mutual Fund and Summit Alliance Port.

Chittagong stocks also recorded a sharp fall. The CSE Selective Categories Index declined 119.01 points, or 2.22 percent, to 5,222.54 points. The CSE All Share Price Index also fell 171.91 points, or 2.09 percent to 8,032.36 points.

A total of 45,71,202 shares worth Tk 46.28 crore changed hands on the Chittagong Stock Exchange. Of the 133 traded scrips on the port city bourse, 13 advanced and 120 declined.

Beximco topped the turnover leaders on the CSE with 2,94,700 traded shares worth Tk 6.06 crore. The other turnover leaders were Shinepukur Ceramics, Beximco Pharma, Grameen Mutual Fund One: Scheme Two, Titas Gas, BSRM Steels, Summit Power, AIMS 1st Mutual Fund, Jamuna Oil and ACI Formulations.