Stocks rebound on bargain hunting

Staff Correspondent | Published: 00:05, Feb 07,2018

 
 

Dhaka stocks rebounded on Tuesday snapping a five-day hammering as a section of investors, eyeing corporate declaration, went on bargain hunting share purchase, braving the political worries.
The key index of Dhaka Stock Exchange, DSEX, soared by 1.35 per cent, or 79.46 points, to finish at 5,949.24 points on Tuesday after shedding 307 points in the previous five trading sessions.
The day’s trading opened in buoyant mood that continued till the end of the session without any pull back as a section of investors went on bargain hunting to buy shares at relatively lower prices after 5-day rout, market operators said.
They said that the key stakeholders’ scrambling to keep the market afloat and announcements of board meetings schedule of a number of financial institutions encouraged many of the investors to go for buying on Tuesday.
In previous five trading sessions, investors remained panicky over the country’s political situation surrounding the verdict of BNP chairperson Khaleda Zia scheduled for Thursday in a corruption case and concern over the possibility of aggravating liquidity crisis in the banking sector following Bangladesh Bank move to cut banks’ advance-deposit ratio (ADR).
Market operators said although there were still concerns among the investors about the political situation, the approaching earning declaration season encouraged many of the investors.
Besides, media reports about a meeting at the finance ministry held on Monday about the fall of the stocks and the government decision to suspend auction of T-bills and bonds for the month of February gave a breather to investors on Tuesday, they said.
Market operators said that some of the investors thought the auction suspension would relieve the existing pressure on the liquidity situation.
Two major non-bank financial institutions’ announcements of board meetings to declare dividends
for the year 2017 sparked the buying of shares of the financial sector, including banks.
Share prices of LankaBangla Finance and IDLC Investments surged by 4.63 per cent and 2.64 per cent respectively as the companies announced to hold board meetings next week regarding their financial statements for the year ended on December 31, 2017.
Besides them, share prices of BRAC Bank and City Bank also soared by 6.05 per cent and 4.88 per cent respectively.
Market operators said that intervention by some of the financial institutions by injecting funds in the capital market also helped the market recovery.
The turnover at the bourse, however, dropped to Tk 322.84 crore from that of Tk 440.42 crore in the previous session as a section of investors still remained concerned about the political situation.
Share prices of bank, non-bank financial institution and cement sectors advanced by 2.88 per cent, 1.21 per cent and 0.90 per cent respectively.
Besides, the share prices of pharmaceuticals, non-bank financial institution and energy sectors increased by 0.5 per cent, 0.4 per cent and 0.2 per cent respectively.
Average share prices of food, bank and cement declined by 1.4 per cent, 1.0 per cent and 0.3 per cent respectively.
‘The country’s leading bourse closed in the green zone as Investors’ positive sentiment regarding the market reestablish,’ said EBL Securities in its daily market commentary.
Out of 337 companies and mutual funds traded, 276 declined, 38 advanced and 23 remained unchanged.
DS30, the blue-chip index of the DSE, also advanced 1.13 per cent, or 24.87 points, to close at 2,216.17 points.
Shariah index, DSES, added 0.60 per cent, or 8.35 points, to close at 1,385.57 points.
LankaBangla Finance led the turnover chart on the day with its shares worth Tk 23.72 crore changing hands.
Pharma Aids, BRAC Bank, Beximco Pharmaceuticals, Square Pharmaceuticals, BBS Cables, BD Finance, Grameenphone, Confidence Cement and City Bank were the other turnover leaders.
Pharma Aids was the top gainer with an 8.78-per cent rise in its share prices, while Vanguard AML BD Finance Mutual Fund One was the worst loser, shedding 4.21 per cent. 

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