Stocks slip amid money market worries
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Sunday
January 29, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
SUNDAY, JANUARY 29, 2023
Stocks slip amid money market worries

Stocks

TBS Report
22 November, 2021, 09:35 pm
Last modified: 22 November, 2021, 09:44 pm

Related News

  • A proper price formula can help investors to plan big
  • Recession fears pose challenge to energy shares after stellar year
  • Adani rout crosses $51b as stocks plunge by daily limits
  • Stocks, dollar gain on soft landing hopes
  • Coppertech's net profit declines 89% in Q2

Stocks slip amid money market worries

The banking sector suffered the maximum 2.9% contraction in market capitalisation on Monday as profit bookers came up following a sharp rally over a week

TBS Report
22 November, 2021, 09:35 pm
Last modified: 22 November, 2021, 09:44 pm
Photo: Courtesy
Photo: Courtesy

Stocks suffered a selloff in the bourses of Dhaka and Chattogram on Monday as money market liquidity is gradually going against investors.

DSEX, the broad-based index at the Dhaka Stock Exchange (DSE), fell 0.89% to close at 7,022 points as the majority of stocks declined.

Large-cap banking stocks, following a week of the sharp rally, suffered the maximum selling pressure as investors preferred profit booking, EBL Securities said in its daily market commentary after the trading hours.

"Amidst the volatility, investors got the opportunity to rebalance their portfolios as bargain hunters are booking dividend yield from the June-closing scrips," the brokerage firm's analysts added.

When stocks trade cheaper, dividend yield goes higher as investors get more dividends against their invested capital to own the stocks.

The listed companies – other than financial service providers and some multinationals – close their annual accounts at the end of June and now they are in the season of dividend declaration, arranging shareholders' general meetings and finally disbursing the dividends.

"The deepening worries of the liquidity stress in the money market is also being viewed cautiously by the investors," EBL Securities also said.

The money market has been heating up in recent days due to a shortage of surplus call-ready taka in the banking industry, while the surplus liquidity has mostly been concentrated on a few banks.

Leaving behind the recent months of abundant liquid money earlier this year, the money market is in a trend of contracting liquidity amid the central bank's continuous efforts to stabilise the exchange rate through selling foreign currency to banks and mop up local currency against that, while businesses and families are also in need of more money to pay their inflated bills as the inflation rates are going higher. 

Since a liquid money market situation inspires investors to look for higher-return investment alternatives like stocks. While money has a diversified utilisation with a decent return expectation, many investors prefer less stock investment.

In the volatile market situation, a portion of investors appeared to behave more watchfully than actively participating in daily trading, and that caused a 31% drop in the daily turnover at the DSE.

Sunday was a good day for bank investors while their stocks are relatively cheaper at the DSE if compared against their earnings per share.

More transactions of the large-cap banking scrips helped the DSE register 22.3% higher or Tk1,786 crore in daily turnover after more than a month of trade contraction.

The banking sector's market capitalisation contracted by 2.9% on Monday, to wipe out the entire sectoral gain on Sunday.

Banks' contribution to daily turnover at the Dhaka bourse remained above Sunday's level of 43.5%.

Textile and pharmaceuticals sectors were in the second and third spots to make the DSE turnover on Monday.

Out of the 359 issues traded, 104 advanced, 216 declined, and 39 remained unchanged.

Most of the sectors exerted dismal performance on Monday. Cement and jute were in the immediate next spots to banks to see a contraction in market capitalisation.

On the other hand, travel and leisure, ceramic and miscellaneous sectors led the green part on the table of sectoral gains on Monday.

Indices in the Chittagong Stock Exchange also closed in the red terrain.

Top News

stocks / selloff / market liquidity / investors / liquid money market

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Photo: Mumit M/TBS
    Biz leaders want crisis management, energy security for survival
  • A proper price formula can help investors to plan big
    A proper price formula can help investors to plan big
  • SK Bashir Uddin: TBS sketch
    Investments risky without consistent policy, reliable data

MOST VIEWED

  • Alif Industries now allowed to issue new shares to help C&A Textiles
    Alif Industries now allowed to issue new shares to help C&A Textiles
  • Taka devaluation erodes National Polymer profit by 94%
    Taka devaluation erodes National Polymer profit by 94%
  • Higher costs, strong dollar slash BBS Cables profit by 92%
    Higher costs, strong dollar slash BBS Cables profit by 92%
  • BBS Cables' Q2 profit plunges as order drops amid high production costs
    BBS Cables' Q2 profit plunges as order drops amid high production costs
  • Coppertech's net profit declines 89% in Q2
    Coppertech's net profit declines 89% in Q2
  • Walton's profit declines by 63.41% in second quarter
    Walton's profit declines by 63.41% in second quarter

Related News

  • A proper price formula can help investors to plan big
  • Recession fears pose challenge to energy shares after stellar year
  • Adani rout crosses $51b as stocks plunge by daily limits
  • Stocks, dollar gain on soft landing hopes
  • Coppertech's net profit declines 89% in Q2

Features

Snipe in flight. Photo: Enam Ul Haque

Baikka Beel: 'A world where snipe work late'

11h | Panorama
Photo: Noor-A-Alam

Pet cafes: Where love for food and animals cohabit

13h | Food
Illustration: TBS

How MFS is turbocharging national economy

15h | Thoughts
Now is the time to focus on FDI composition

Now is the time to focus on FDI composition

17h | Panorama

More Videos from TBS

What does Shahrukh has in his 770 million dollar property?

What does Shahrukh has in his 770 million dollar property?

6h | TBS Entertainment
15 Reasons Your Entrepreneurial Career Can Fail

15 Reasons Your Entrepreneurial Career Can Fail

5h | TBS Career
Women are going to make history in match management in cricket

Women are going to make history in match management in cricket

4h | TBS SPORTS
Gold covered mummy discovered in Egypt

Gold covered mummy discovered in Egypt

10h | TBS World

Most Read

1
Picture: Collected
Bangladesh

US Embassy condemns recent incidents of visa fraud

2
Four top bankers arrested in DSA case filed by S Alam group 
Bangladesh

Four top bankers arrested in DSA case filed by S Alam group 

3
Illustration: TBS
Banking

16 banks at risk of capital shortfall if top 3 borrowers default

4
Photo: Collected
Splash

Hansal Mehta responds as Twitter user calls him 'shameless' for making Faraaz

5
A frozen Beyond Burger plant-based patty. Photographer: AKIRA for Bloomberg Businessweek
Bloomberg Special

Fake meat was supposed to save the world. It became just another fad

6
Representational Image
Banking

Cash-strapped Islami, Al-Arafah and National turn to Sonali Bank for costly fund

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]