Dhaka stocks rise sharply on bargain hunting

Staff Correspondent | Published: 00:00, Apr 06,2018 | Updated: 00:14, Apr 06,2018

 
 

Dhaka stocks rose sharply on Thursday as investors went for bargain hunting share purchases betting on the government steps to increase money supply in the financial market.
The key index of Dhaka Stock Exchange, DSEX, gained 0.83 per cent, or 48.13 points, to close at 5,841.19 points on Thursday after gaining 2.76 points in the previous session.
The day’s trading began on cautious mood, in line with the previous session, with the DSEX losing 13 points in first one hour, market operators said.
But, bargain hunting moves by some of the investors to purchase shares, especially that of banking sector, led the rebound of the DSEX ultimately closing at strong position.
‘The market sustained positive trend throughout the session with some volatility as opportunity hunter investors opted to take fresh position in their portfolio with the vibe of regaining the confidence,’ said EBL Securities in its daily market commentary.
After assessing the market in the previous two sessions, the institutional investors in particular moved for investment in the market with an expectation of better momentum following the government steps to increase fund flow in the financial market, said a stockbroker.
The Bangladesh Bank on Tuesday cut cash reserve ratio of banks’ by 1 percentage point to 5.5 per cent and repo rate by 0 .75 percentage point to 6 per cent while the government allowed the state-owned agencies to deposit up to 50 per cent of their fund with the private banks from earlier 25 per cent.
Despite huge criticisms from the economists and banking experts over the government steps, a section of investors presumed that the moves would eventually increase the fund flow in the financial market, he said.
The investors who faced huge losses in the last three months mainly due to concern over the claims of liquidity shortage in the financial market got some confidence back following the government moves, he said.
Share prices of all the sectors increased with financial sector leading the way.
Average share prices of non-bank financial institution, bank and pharmaceuticals sectors advanced by 0.72 per cent, 0.68 per cent and 0.66 per cent respectively.
Share prices of cement energy and engineering sectors also joined the rally.
Among the large capitalised scrips, share prices of BRAC Bank, Bangladesh Export Import Company and LafargeHolcim Bangladesh were the highest positive index mover of the day.
The turnover at the bourse advanced to Tk 572.04 crore on Thursday compared with that of Tk 546.68 crore in the previous session.
Of the 335 companies and mutual funds traded on the day, 203 advanced, 87 declined and 45 remained unchanged.
DS30, the blue-chip index of the DSE, also advanced 1.25 per cent, or 27.29 points, to finish at 2,194.53 points.
Shariah index DSES, however, added 0.59 per cent, or 8.08 points, to close at 1,356.54 points.
Bangladesh Export Import Company led the turnover chart on the day with its shares worth Tk 34.98 crore changing hands.
BRAC Bank, Unique Hotel, Aamra Networks, Beximco Pharmaceuticals, Square Pharmaceuticals, Monno Ceramics, City Bank, LankaBangla Finance and Mercantile Bank were the other turnover leaders.
Bangladesh Export Import Company gained the most with an 8.30-per cent increase in its share prices, while Shyampur Sugar Mills was the worst loser, shedding 4.32 per cent.

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