Stocks gain in cautious trading

Staff Correspondent | Published: 23:14, Jan 18,2018

 
 

Dhaka stocks rose on Thursday in cautious trading after a fall in the previous session ahead of the announcement of the monetary policy by Bangladesh Bank.
The central bank will announce its monetary policy statement for the second half (January-June) of this fiscal year (2017-18) next week.
DSEX, the key index of Dhaka Stock Exchange, increased by 0.39 per cent, or 23.90 points, to close at 6,098.32 points after losing 30.48 points in the previous session.
The market was negative during the first hour of the trading session but began to move upward soon after as a section of investors went for bargain hunting, market operators said.
They, however, said that investors remained cautious that resulted in a fall in the day’s turnover as they awaited central bank’s monetary policy.
Market operators said the regulator and other stakeholders were also trying to convince large investors to keep the market afloat.
‘We urged the ICB (Investment Corporation of Bangladesh) to discontinue share sales and the organisation has agreed. Now, we will request the finance ministry to permit the ICB to inject more funds in the capital market,’ DSE Brokers Association president Mustaque Ahmed Sadeque said on Wednesday.
He said that the ICB adjusted its single-party exposure at the end of last year by selling shares as the BB forced the state-run investment firm to do that, ignoring appeals from DSE officials.
Merchant bankers and stockbrokers at a meeting on Tuesday decided that they would hold a meeting with BB governor Fazle Kabir soon to put forward some proposals for improving the current bearish situation at the stock market.
Market operators also said many companies would soon disclose their earnings and dividends for last year that also drew attention of some investors.
The average share prices of pharmaceutical, telecommunication and bank sectors increased by 1.3 per cent, 0.4 per cent and 0.1 per cent respectively.
Among the prominent scrips, Shahjalal Islami Bank, Square Pharmaceuticals and Grameenphone contributed most to the rebound at the market.
The market has remained on the edge for the last few trading sessions after the central bank said that it would cut the banks’ advanced deposit ratio and hinted to announcing a tightened monetary policy for the second half of the financial year 2017-18.
The turnover at the bourse declined to Tk 358.96 crore on the day from that of Tk 391.55 crore in the previous session.
The average share prices of IT and non-bank financial institutions declined by 0.19 per cent and 0.20 per cent respectively.
‘Mixed sentiment among the investors regarding the capital market outlook prevailed prior to the earnings declaration from the listed issues,’ said EBL Securities in its daily market commentary.
Of the 334 companies and mutual funds traded, 134 declined, 142 advanced, and 58 remained unchanged.
DS30, the blue-chip index of the DSE, also added 0.22 per cent, or 4.97 points, to finish at 2,241.11 points.
Shariah index DSES increased by 0.82 per cent, 11.47 points, to close at 1,403 points.
Square Pharmaceuticals led the turnover chart on the day with its shares worth Tk 44.98 crore changing hands.
Dragon Sweater, IFAD Autos, Grameenphone, BD Thai, City Bank, Golden Harvest Agro Industries, IPDC Finance, Olympic Industries and Shahjalal Islami Bank were the other turnover leaders.
Renwick Jajnewswar and Co increased most with a 7.50-per cent rise in its share prices, while SEML IBBL Shariah Fund was the worst loser, shedding 6.41 per cent.

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