Dhaka stocks slightly up but turnover plunges

Staff Correspondent | Published: 21:16, Mar 08,2018

 
 

Dhaka stocks finished slightly up in volatile trading on Thursday with the turnover at the Dhaka Stock Exchange hitting its lowest in more than one and a half years as investors preferred to watch the market from the sidelines amid lingering concerns over the DSE’s share sales to a strategic partner and liquidity shortage at the financial market.
The DSE’s key index, DSEX, gained 0.09 per cent, or 5.80 points, to finish at 5,827.98 points after gaining 25.62 points in the previous session.
Investors remained cautious that reflected in the investors’ participation on the trading floor, market operators said.
The turnover at the DSE plunged to Tk 273.91 crore on Thursday compared with that of Tk 405.73 crore in the previous session.
Thursday’s turnover was the lowest since July 11, 2016 when it was Tk 272.75 crore.
The market, however, finished in the positive trajectory after a late hour push, stockbrokers said.
The liquidity shortage coupled with frequent media reports on banks’ scams dampened the investors’ mood, they said.
Market experts feared that the fund shortage might worsen ahead of the national elections, likely to be held at the end of this year.
They said the concern over the DSE’s share sales to a strategic partner lingered as the Bangladesh Securities and Exchange Commission on Wednesday extended timeframe for an evaluation committee for submitting its report on the DSE’s proposal in this regard to the commission by five working days after the committee failed to provide the report by the stipulated timeframe.
Investors who were eagerly waiting for the market progress by the strategic partner were disheartened by the commission’s delay in settling the issue, they said.
The average share prices of engineering, pharmaceutical and energy declined by 0.60 per cent, 0.24 per cent and 0.15 per cent respectively.
On the other hand, the share prices of bank, non-bank financial institutions and telecommunication increased by 0.62 per cent, 0.19 per cent and 0.15 per cent respectively.
The share prices of BRAC Bank, British American Tobacco and Islami Bank gained most on the day.
Out of the 337 companies and mutual funds traded, 162 declined, 120 advanced, and 52 remained unchanged.
DS30, the blue-chip index of the DSE, also added 0.01 per cent, or 0.19points, to close at 2,143.82 points.
Shariah index DSES, however, shed 0.01 per cent, or 0.26 points, to finish at 1,373.00 points.
Al-Arafah Islami Bank led the turnover chart on the day with its shares worth Tk 12.94 crore changing hands.
BRAC Bank, Monno Ceramics, Square Pharmaceuticals, ACI Limited, Grameenphone, IFAD Autos, Nahee Aluminum, BD Thai, Apex Foods and Mercantile Bank were the other turnover leaders.
Summit Alliance Port was the top gainer with a 4.23-per cent rise in its share prices, while Asia Pacific General Insurance Company was the worst loser, shedding 4.93 per cent.

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