Stocks inch up as investors eye BSEC move on DSE share sales

Staff Correspondent | Published: 00:05, Mar 07,2018 | Updated: 23:31, Mar 06,2018

 
 

Dhaka stocks advanced slightly on Tuesday after a plunge in the previous session as a section of investors went for bargain hunting while others remained cautious amid the existing liquidity shortage at the financial market and uncertainties over the DSE’s share sales to a strategic partner.
The Dhaka Stock Exchange’s key index, DSEX, gained 0.21 per cent, or 12.47 points, to finish at 5,847.81 points after losing 48.05 points in the previous session.
The market began the day with a downward mood but rebounded soon as a section of investors went for bargain hunting amid the government’s market stabilising moves and expectation of better dividends and financial earnings results, market operators said.
The market, however, remained subdued amid lingering fears over the DSE’s share sales and the existing liquidity crisis at the financial market, they said.
Following the recent weeks’ substantial fall at the market, institutional investors in particular went for bargain hunting amid the government moves to keep the market stable in the election year, they said.
The average share prices of telecommunication, energy and pharmaceutical sectors declined by 1.18 per cent, 0.22 per cent and 0.21 per cent respectively.
The share prices of Grameenphone and Square Pharmaceuticals gained 1.2 per cent and 0.54 per cent respectively that weighed most on the index.
A section of investors feared that the DSE’s share sales to a Chinese consortium might face a postponement as the Bangladesh Securities and Exchange Commission might delay making any decision about the DSE proposal favouring the consortium of Shenzen Stock Exchange and Shanghai Stock Exchange.
The BSEC evaluation committee would submit to the commission its report on the issue today.
Earlier, on Sunday, the DSE sent replies to the queries made by the BSEC about rules ‘violations’ in the strategic partnership proposal of the Chinese consortium. The DSE mentioned the group’s willingness to amend a number of clauses the BSEC highlighted in its letter to the DSE.
Besides, a section of investors also assumed that the government might not support any selection of strategic partner ahead of the national elections, likely to be held at the end of this year, market operators said.
Market experts expressed concern that the market would remain unstable and volatility would return every now and then during this election year.
The share prices of food and bank declined by 1.22 per cent and 0.0.6 per cent respectively.
The turnover at the DSE increased to Tk 426.90 crore on Tuesday compared with that of Tk 389.53 crore in the previous session.
Out of the 337 companies and mutual funds traded, 167 advanced, 116 declined, and 50 remained unchanged.
DS30, the blue chip index of the DSE, also added 0.16 per cent, or 3.50 points, to close at 2,155.86 points.
Shariah index DSES rose 0.54 per cent, or 7.39 points, to finish at 1,375.11 points.
Monno Ceramics led the turnover chart on the day with its shares worth Tk 11.51 crore changing hands.
CVO Petrochemical Refinery, IBN Sina, National Tubes, BBS Cables, Nahee Aluminum Composites Panel, Grameenphone, Apex Foods, Square Pharmaceuticals and Alif Industries were the other turnover leaders.
CAMP IBBL Islamic Mutual Fund was the top gainer with an 8.88-per cent rise in its share prices, while Asia Pacific General Insurance Company was the worst loser shedding 5.81 per cent. 

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