Dhaka stocks gained for the second day on Wednesday as a section of investors went for buying shares with an expectation of better financial disclosures from listed companies but concerns over the complexities regarding the Dhaka Stock Exchange’s share sales to a strategic investor kept the market subdued.
The DSE’s key index, DSEX, rose 0.22 per cent, or 13.93 points to finish at 6,102.30 points on Wednesday after gaining 6.08 points in the previous session.
The market started the day bullish, gaining 42 points at one stage since investors were rebalancing their portfolios following the recent bear run at the market, market operators said.
They said that the share prices of most of the companies declined in the recent market volatility amid political tensions surrounding the February 8 verdict against Bangladesh Nationalist Party chairperson Khaleda Zia in a graft case that prompted investors to go for bargain hunting.
Moreover, financial companies have started to declare their earnings’ results and dividends for the year 2017 that encouraged a section of investors to invest at the market, they said.
Investors were also buying shares following the media reports that the Bangladesh Securities and Exchange Commission was going to punish 219 directors of 78 companies for not holding minimum 2 per cent shares in their respective companies, presuming that the share prices of those companies would rise if the errant directors go for buying shares, market operators said.
The average share prices of engineering, pharmaceutical and non-bank financial institution sectors gained by 0.40 per cent, 0.16 per cent and 0.07 per cent respectively.
Beximco Pharmaceuticals and BRAC Bank increased most on the day.
The share prices of LankaBangla Finance dropped by 1.75 per cent on Wednesday.
On Tuesday, LankaBangla Finance declared 15 per cent dividend despite posting a 138-per cent gain in earnings per share while the company had declared 30 per cent dividend in the previous year.
The market ended up with a slight gain as a section of investors were still uncertain about the sales of 25 per cent stake of the DSE to a strategic investor following the BSEC’s verbal objection to the DSE decision to select a Chinese consortium.
Besides, investors remained concerned over the ongoing liquidity crisis at the market that bankers predicted would get worse ahead of the national elections, which was another reason for the flat ending of the market.
The share prices of food, telecommunication and bank declined 0.69 per cent, 0.38 per cent and 0.24 per cent respectively.
The turnover at the DSE increased to Tk 621.19 crore on Wednesday compared with that of Tk 503.66 crore in the previous session.
Out of the 337 companies and mutual funds traded, 175 advanced, 125 declined and 35 remained unchanged.
DS30, the blue-chip index of the DSE, also added 0.20 per cent, or 4.50 points, to close at 2,250.53 points.
Shariah index DSES gained 0.27 per cent, or 3.87 points, to close at 1,410.63 points.
LankaBangla Finance led the turnover chart on the day with its shares worth Tk 29.71 crore changing hands.
Unique Hotel and Resorts, BRAC Bank, Beximco Pharmaceuticals, Fu-Wang Food, Monno Ceramics, Keya Cosmetics, Mercantile Bank, Square Pharmaceuticals and Paramount Textiles were the other turnover leaders.
Aman Feed was the top gainer with a 10-per cent rise in its share prices, while Padma Islamic Life Insurance was the worst loser, shedding 4.32 per cent.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Stocks