Dhaka stocks finish up but SIBL plunges over takeover news

Staff Correspondent | Published: 22:50, Oct 31,2017

 
 

Dhaka stocks increased on Tuesday with a rise in the share prices of most of the scrips amid better financial declarations from a number of companies while the bank sector dipped due to a plunge in the share prices of Social Islami Bank following the media reports that S Alam Group took control of the board of the bank.
DSEX, the key index of Dhaka Stock Exchange, rose by 0.38 per cent, or 23.34 points, to finish at 6,019.59 points after adding just 0.87 points in the previous trading session.
Stockbrokers said the market was mostly negative during the morning session that gradually improved later as investors went for share purchasing amid better financial declarations.
The share prices of Olympic Industries and Power Grid increased by 2.04 per cent and 2.60 per cent respectively as the company recommended better dividends for the year 2017.
Moreover, British American Tobacco rose by 0.4 per cent as the company declared an increase in profit by 11.68 per cent for the January-June, 2017 compared with that in the previous year.
On the other hand, Social Islami Bank declined most — by 7.7 per cent — on the day as the media reported on Tuesday that Chittagong-based S Alam Group tightened its grip on yet another bank as SIBL chairman, executive committee chairman and managing director were changed at a meeting on Monday.
Economists have already expressed their concern over the takeover of SIBL by S Alam Group, which also controls several other banks including Islami Bank, Al-Arafah Islami Bank, First Security Islami Bank and Union Bank.
Investors became worried as a number of news reports, quoting economists, said that the control by a single business group of so many banks would hamper the corporate governance in the banking sector.
Besides, BRAC Bank and City Bank continued to decline as investors were taking profit from the shares.
As a result, the share prices of bank dipped by 0.46 per cent on the day while telecommunications and non-bank financial institutions also declined by 0.29 per cent and 0.19 per cent respectively.
Although the financial sectors declined, the surge in share prices of most of the scrips helped the market get the positive ending.
Of the 333 companies and mutual funds traded, 198 advanced, 93 declined and 39 remained unchanged.
Turnover on the bourse declined further to Tk 537.46 crore compared with that of Tk 509.63 crore in the previous trading session.
‘The core index remained upward throughout the session with slight correction in the middle as buying pressure outweighed the selling pressure in the midst of low participation from the investors,’ said EBL Securities in its daily market commentary.
DS30, the blue-chip index of the DSE, added 0.24 per cent, or 5.22 points, to close at 2,168.03 points.
Shariah index DSES advanced by 0.43 per cent, or 5.72 points, to close at 1,316.24 points on Tuesday.
LankaBangla Finance led the turnover chart with its shares worth Tk 31.40 crore changing hands.
BBS Cables, BRAC Bank, Aamra Networks, City Bank, EXIM Bank, Khulna Power Company, Saif Powertec, AB Bank, and Square pharmaceuticals were the other turnover leaders.
Salvo Chemical Industry gained the most with a 9.17-per cent increase in its share prices, while Social Islami Bank was the worst loser, shedding 7.66 per cent. 

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