Stocks inch up amid uncertainty over DSE stake sales

DSE brokers assoc backs board’s selection of Chinese consortium

Staff Correspondent | Published: 00:05, Feb 14,2018 | Updated: 23:58, Feb 13,2018

 
 

Dhaka stocks on Tuesday inched up in choppy trading amid uncertainty over the selection of the bourse’s strategic partner and concern about the liquidity shortage in the financial market.
The key index of Dhaka Stock Exchange, DSEX, rose by 0.09 per cent, or 6.08 points to finish at 6,088.37 points on Tuesday, after losing 11.66 points in the previous session.
The market went through a topsy-turvy trading session with few ups and downs on Tuesday with investors rebalancing their portfolios after the recent volatility of the market, the market operators said.
They said some of the investors were still monitoring the development regarding the sales of 25 per cent stakes of the DSE to a strategic investor, which became uncertain following the Bangladesh Securities and Exchange Commission’s verbal objection to DSE about its selection of a Chinese consortium.
Although DSE board on Saturday approved the selection of the top bidder, a Chinese consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange, for the stake sales, BSEC has been pressing the DSE to scrap the selection and pick the second highest bidder, a consortium led by National Stock Exchange of India.
DSE Brokers Association Bangladesh on Monday issued an appreciation letter to DSE board and praised their sincerity in selecting the Chinese consortium.
It said, ‘We believe that the strategic partnership with the consortium will generate substantial synergies in the long run.’
Market operators said a section of investors remained concerned over the ongoing liquidity crisis in the market that was predicted by bankers to get worse ahead of the national elections, which was another reason behind the flat ending of the market.
Average share prices of food, cement and pharmaceuticals increased by 0.44 per cent, 0.27 per cent and 0.21 per cent respectively.
On the other hand, some of the investors went for share buying with an expectation of better financial disclosures for the 2017 after getting eased from the fear of political uncertainty surrounding the issue of jail sentence to Bangladesh National Party chairperson Khaleda Zia.
As a result, share prices of telecommunication and bank gained 0.46 per cent and 0.22 per cent respectively.
Among the prominent scrips, share prices of BRAC Bank, City Bank and Grameenphone increased most on the day.
The turnover at the DSE, increased to Tk 503.66 crore on Tuesday compared with that of Tk 486.63 crore in the previous session.
‘Investors sentiment regarding the capital market oscillated between optimism and vigilance in the current market scenario, liquidity shortage in the market and after heavy price fall opportunity hunter investors opted for position taking,’ said EBL Securities in its daily market commentary.
Out of the 337 companies and mutual funds traded, 167 advanced, 123 declined and 47 remained unchanged.
DS30, the blue-chip index of the DSE, also added 0.08 per cent, or 1.98 points, to close at 2,246.03 points.
Shariah index DSES gained 0.10 per cent, or 1.51 points, to close at 1,406.75 points.
LankaBangla Finance led the turnover chart on the day with its shares worth Tk 19.64 crore changing hands.
BRAC Bank, Anwar Galvanizing, Paramount Textile, Keya Cosmetics, Grameenphone, Alif Industries, Monno Ceramics, Square Pharmaceuticals and National Tubes were the other turnover leaders.
Apex Foods Limited was the top gainer with a 9.93-per cent rise in its share prices, while Keya Cosmetics was the worst loser, shedding 5.30 per cent. 

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