Stocks gain for 4th day on govt’s market stabilising moves

Staff Correspondent | Published: 00:05, Mar 05,2018 | Updated: 01:26, Mar 05,2018

 
 

Dhaka stocks increased marginally on Sunday, stretching the gaining streak to the fourth consecutive session, as a section of investors kept buying shares amid the government measures to keep the market stable.
The Dhaka Stock Exchange’s key index, DSEX, added 0.21 per cent, or 12.55 points, to finish at 5,883.38 points. The key index increased by 108 points in last four sessions.
The market started the day on a positive note, gaining 53 points within an hour of the session as investors kept buying shares amid optimism, market operators said.
The gain, however, slowed in late hours, ending with a marginal gain as a section of investors still remained sceptical amid a liquidity crisis at the financial market and uncertainties over the DSE’s share sales to a strategic partner, they said.
They said that the concern over the financial market pared down when the government became vigilant to keep the market stable after a relentless fall in the market before the four gaining sessions.
After the direction of finance minister AMA Muhith to the agencies concerned to take measures for improving the market condition, industries minister Amir Hossain Amu on Saturday at a financial literacy programme held in Barisal said that the present crisis at the capital market in recent times would go soon.
The finance ministry also asked state-run Investment Corporation of Bangladesh to play its investment role in the capital market, a BSEC official said.
Besides, a section of investors were injecting fund in the capital market amid the expectation of better financial results and dividends that some of the companies have already declared for the year 2017.
The average share prices of non-bank financial institution, energy and telecommunication gained 0.6 per cent, 0.4 per cent and 0.3 per cent respectively.
On the other hand, fresh doubts regarding the DSE’s share sales dampened the investors’ mood, market operators said.
The Bangladesh Securities and Exchange Commission recently asked the DSE to clarify a number of ‘violations’ by a Chinese consortium in its strategic partnership proposal. The DSE earlier approved the proposal though the BSEC had been pushing the bourse to pick an India’s National Stock Exchange-led group as its strategic partner.
The DSE on Sunday sent its replies to the BSEC queries.
Moreover, the liquidity shortage at the financial market that was feared to worsen ahead of the national elections eroded investors’ risk-taking appetite, market operators said.
As a result, the turnover at the DSE dropped to Tk 363.43 crore on Sunday compared with that of Tk 422.30 crore in the previous session.
The average share prices of cement, pharmaceutical and bank declined by 1.0 per cent, 0.2 per cent and 0.2 per cent respectively.
‘The core index shot up in the beginning of the session but faced selling pressure in the later part of the session, which obstructed the ascent,’ said EBL Securities in its daily market commentary.
Out of the 337 companies and mutual funds traded, 178 advanced, 109 declined and 47 remained unchanged.
DS30, the blue chip index of the DSE, also gained 0.15 per cent, or 3.44 points, to close at 2,172.40 points.
Shariah index DSES added 0.09 per cent, or 1.32 points, to finish at 1,373.77 points.
National Tubes led the turnover chart on the day with its shares worth Tk 12 crore changing hands.
IFAD Autos, Apex Foods, Alif Manufacturing Company, Phoenix Finance, Monno Ceramics, Aamra Networks, Keya Cosmetics, LankaBangla Finance and Alif Industries were the other turnover leaders.
Apex Foods was the top gainer with a 7.56-per cent rise in its share prices, while NCC Mutual FunD-1 was the worst loser shedding 9.67 per cent. 

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