Dhaka stocks increased on Wednesday despite a decline in the share prices of around two-thirds of the traded scrips as a number of multinational companies, especially Lafarge Surma, soared.
DSEX, the key index of Dhaka Stock Exchange, gained 0.30 per cent, or 18.89 points, to close at 6,167.56 points on the day after gaining 8.26 points in the previous session.
The market opened with a positive momentum, gaining 20 points within an hour of the day, but it later moved downward and remained flat as investors continued selling shares, market operators said.
The market, however, ended up with a marginal gain as a section of investors went for buying shares from a number of multinational companies, especially Lafarge Surma and Grameenphone, they said.
Despite a fall in the share prices of almost two-thirds of the traded scrips, the market advanced due to a continued surge in the share prices of Lafarge Surma following the media report that Lafarge and Holcim Cement (Bangladesh) agreed to get merged at the price set by Bangladesh Bank.
Lafarge Surma Cement has approved the acquisition of hundred per cent shares (88,244 shares) of Holcim Cement (Bangladesh) Ltd at the price of Tk 504.78 crore set by the central bank.
The share prices of the cement company soared by 7.77 per cent on the day and gained Tk 20 in last four sessions.
The company led the turnover chart on the day with its shares worth Tk 113.29 crore changing hands in an otherwise sluggish market and it bagged one-fifth of the day’s total turnover.
Besides Lafarge, the share prices of Olympic Industries, British American Tobacco and Grameenphone surged by 4.84 per cent, 0.97 per cent and 0.45 per cent respectively that kept the market afloat on the day, stockbrokers said.
The average share prices of bank, cement and food increased on the day.
On the other hand, prolonged sluggishness and downward trend at the market prompted investors to sell off shares from most of the sectors to avoid any possible losses before the end of the year.
As a result, most of the sectors dipped on the day while engineering, non-bank financial institutions and pharmaceuticals declined most, among the prominent sectors.
Many investors preferred to be on the sidelines to observe the next move of the market that caused the average turnover of the market remaining at around Tk 400 crore in recent weeks as year-end disclosures from companies are approaching.
On Wednesday, the turnover at the bourse increased to Tk 551.70 crore compared with that of Tk 371.4 crore in the previous session.
‘Buying pressure outweighed the selling pressure in the midst of low participation from the investors,’ said EBL Securities in its daily market commentary.
Investors’ buying pressure continued on sector specific stocks from cement, food and allied and bank sector, it said.
Of the 335 companies and mutual funds traded, 191 declined, 91 advanced, and 53 remained unchanged.
DS30, the blue-chip index of the DSE, gained 0.73 per cent, or 16.46 points, to finish at 2,261.38 points.
Shariah index DSES also added 0.55 per cent, or 7.57 points, to close at 1,379.59 points.
Olympic Industries, Islami Bank, Paramount Textiles, Nahee Aluminum, City Bank, Shahjalal Islami Bank, LankaBangla Finance, Grameenphone and BRAC Bank were the other turnover leaders.
Lafarge Surma increased most for the second day with a 7.16-per cent rise in its share prices, while Progressive life insurance Company was the worst sufferer, shedding 7.59 per cent.
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