Stocks continue downward dive

Stocks tumbled again on Wednesday as worries about a weakening telecom sector boomeranged around the market.

DSEX, the benchmark index of the Dhaka Stock Exchange, continued its downward dive and dropped 53 points, or 1.2 percent, to finish at 4,228 points. CASPI, the key index of the Chittagong Stock Exchange, lost 122 points or 0.9 percent, to end the session at 12,888 points.

Most of the large-cap stocks witnessed heavy price adjustments, leading to the downturn in the indices. Selling binge on financial Institutions, telecommunication and pharmaceutical sectors contributed the most to the market fall on Wednesday.

Stocks suffered through the last four sessions due to volatility in the money market, an audit tussle between the telecom regulator BTRC and the large-cap stock Grameenphone, and exit of some foreign investors, noted the Daily Market Review of EBL Securities Ltd.

In turn, investors' deepening worry over the capital market worsened further and shares continued to take a beating with no sign of recovery, added the report.

The prices of telecom sector shares fell by 4.4 percent on Wednesday, resulting from investors' confidence crisis on Grameenphone.

IT exhibited the highest price appreciation of 0.5 percent, thanks to ADN Telecom, which registered the highest price gain of 10 percent on its third trading session. The stock closed at Tk44.2 per share. Fuel & Power inched up by 0.1 percent, while all the other sectors ended in the negative territory.

ADN Telecom Ltd was the day's best performer in the top gainers' table while Meghna Pet Industries Ltd was the worst loser giving up 9.2 percent to close at Tk9.9 per share.

The Lafarge Holcim Bangladesh Ltd dominated the turnover table with Tk14 crore turnover, closing at Tk38.6 per share, showed the DSE website.

Out of 351 issues traded, 51 advanced, 249 declined and 51 remained unchanged on the premier bourse on Wednesday.