Stocks close lower for third day

Dhaka, Jan 23 (bdprem.com) -- Dhaka stocks fell Wednesday for a third day in what analysts term 'realignment' in the market. "The market is correcting itself. There is a high level of volatility prevailing," said Yaweer Sayeed, who manages over Tk 1 billion in funds at AIMS of Bangladesh. Your Ad Here "There is an apprehensive feeling among investors. Let me put it this way, we are hesitating to invest. The market is also short of funds," said Sayeed. "The government has raised a sizable amount of money from selling Jamuna and Meghna shares. Now this has gone from the market, and is not been reinvested." "This is not unusual in a market like this, but I would say it's a defect," added Sayeed. DSE chief executive Salahuddin Ahmed said: "Investors' are unsure of the market, so everyone is keeping on the safe side. For the time being the market lacks funds." The market opened with a steep decline in the general index, fluctuating throughout the day, before rallying slightly towards the close. The benchmark DGEN or general index declined 45.16 points, or 1.54 percent, to end at 2880. The DSI or all share price index closed at 2428.01, down 36.07 points, or 1.46 percent. The blue chip DSE-20 slumped 41.08 points, or 1.73 percent, to end on 2320.35. Turnover climbed to Tk 1.70 billion, from Tuesday's Tk 1.43 billion, from 8,435,477 traded shares. Losers outnumbered gainers 173 to 52, with 11 issues holding steady. State-run oil entities and mutual funds dominated the day's turnover board along with the power and banking sectors. All issues on the turnover board lost. Jamuna Oil topped the turnover board, closing 0.68 percent lower at Tk 362.50. Meghna Petroleum followed, ending at Tk 360.80, down 3.63 percent. BRAC Bank slumped 1.08 percent, to close at Tk 1488. Grameen Mutual Fund One closed 0.32 percent down, to end on Tk 90.80. NBL fell 2.96 percent to close at Tk 1503.50. Other scrips on the turnover board to lose were: Power Grid Company of Bangladesh, AB Bank, Islami Bank, UCBL and DESCO. The day's major gainers were Watah Chemicals, Wonderland Toys, Monospool Paper, Meghna Shrimp and Aziz pipes. German Bangla Foods, Therapeutics, Federal Insurance, Eastern Lubricants and BDCOM Online topped the losers. All indices on the Chittagong Stock Exchange also ended lower, with all sectors declining except for "food & allied". Miscellaneous, ceramic and energy sector shares suffered the largest decline. The CSCX or selective categories index declined 72.68 points, or 1.50 percent, to 4750.28. The CASPI or all share-price index ended at 7398.21, down 106.04 points, or 1.41 percent. The blue chip CSE-30 index fell 105.16 points, or 1.56 percent lower, to end on 6621.23. Turnover on the port city bourse stood at Tk 234.692 million, from 1,636,765 traded shares. Of the traded issues, 104 fell, 23 advanced and eight remained unchanged.