Stocks rise for 3rd day amid pause in MPS tension

Staff Correspondent | Published: 00:05, Jan 23,2018

 
 

Dhaka stocks advanced sharply on Monday, extending its gaining streak to the third consecutive session, as investors’ tension over the upcoming monetary policy statement (MPS) of Bangladesh Bank eased for the time being, said market operators.
Finance minister AMA Muhith’s ‘positive comments’ made on Saturday about the stock market and request made by the association of chief executive of banks to Bangladesh Bank for not reducing advanced deposit ratio have eased the jittery of investors for the last two sessions, they said.
DSEX, the key index of Dhaka Stock Exchange, added 0.77 per cent, or 47.81 points, to close at 6,195.00 points.
The core index gained 96 points in the last three trading sessions.
In line with the previous session, the market began with positive note that continued to surge as investors kept bargain hunting share purchasing, market operators said.
They said that the investors assumed that Bangladesh Bank may consider the appeal of Association of Bankers Bangladesh not to cut banks advanced deposit ratio.
The ABB raised concerns that cutting the ADR ratio might create liquidity crisis in the financial market that will hamper development activities of the government in the election year, they said.
Some of the investors also assumed that the government may also ask the BB to backtrack from its move considering the fund crisis in the financial market ahead of election, the operators said.
Finance minister AMA Muhith on Saturday said that the capital market will expand amid increasing initial public offerings that also drew attention of some investors to the market, stockbrokers said.
The core index witnessed a major fall by 180 points in the last two weeks that regained strength following the minister positive comments, they said.
On Monday, non-bank financial institutions and bank increased 1.0 per cent and 0.4 per cent respectively.
Besides, pharmaceuticals, telecommunication and cement advanced 2.0 per cent, 1.3 per cent and 1.32 per cent respectively.
The market staged buoyancy on the day as share prices of some of the large capitalised scrips including Square Pharmaceuticals, LankaBangla Finance and Grameenphone surged.
On the other hand, average share prices of ceramics and energy declined by 0.9 per cent and 0.1 per cent respectively.
‘The capital bourse of the country observed a winning session today amid positive expectation from the investors,’ said EBL Securities in its daily market commentary on Monday.
The turnover at the bourse also increased to Tk 502.42 crore on the day from that of Tk 344.35 crore in the previous session.
Of the 333 companies and mutual funds traded, 150 advanced, 126 declined and 57 remained unchanged.
DS30, the blue-chip index of the DSE, also advanced 1.11 per cent, or 25.14 points, to finish at 2,285.72 points.
Shariah index DSES gained 1.30 per cent, 18.46 points, to close at 1,428.46 points.
Square Pharmaceuticals led the turnover chart on the day with its shares worth Tk 61.83 crore changing hands.
IFAD Autos, Grameenphone, Golden Harvest Agro Industries, BBS Cables, Paramount Textiles, LankaBangla Finance, National Tubes, Beximco Pharmaceuticals and City Bank were the other turnover leaders.
Usmania Glass Sheet Factory increased most with a 9.90-per cent rise in its share prices, while Deshbandhu Polymer was the worst loser, shedding 5.02 per cent.

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