Stocks end 13-day losing streak on bargain hunting

Staff Correspondent | Published: 00:05, May 22,2018 | Updated: 23:01, May 21,2018

 
 

Dhaka stocks on Monday ended a 13-day bear run, the longest losing spell at the Dhaka Stock Exchange, as investors went for bargain hunting, focusing mainly on undervalued scrips.
DSEX, the key index of the DSE, gained 0.41 per cent, or 22.58 points, to close at 5,413.28 points on Monday after losing 423 points in the previous 13 trading sessions.
Despite a downward move in the beginning of the day, the market began to bounce back soon as investors went for bargain hunting, market operators said.
They said that many investors, especially the institutional ones, took ‘buy the dip’ policy as the market passed through its longest losing spell ever that dragged down share prices of most of the scrips.
The lower prices prompted investors to buy shares to attain more profit, they said.
The market dipped to 5,300 points due to the relentless fall as investors were disappointed by the lower-than-expected earnings and dividend declarations by most of the high-profile companies in recent days.
Furthermore, the media reports that the banking sector plagued by scams, huge defaulted loans and poor governance created macroeconomic risk dampened the investors’ mood, market operators said.
The DSE’s agreement signing with a Chinese consortium of Shanghai Stock Exchange and Shenzhen Stock Exchange on May 14 could not halt the market fall that also puzzled investors, they said.
Stockbrokers said that the market might remain sluggish as the national budget announcement date was approaching.
Meanwhile, after rescheduling for several times, finance minister AMA Muhith has scheduled a meeting with DSE officials on May 27.
DSE sources said the officials of the bourse would discuss the current market situation at the meeting.
On Monday, the share prices of non-bank financial institution and bank sectors rebounded by 1.0 per cent and 0.8 per cent respectively that contributed most to the uplift of the market.
The share prices of miscellaneous, food and power sectors also increased on Monday.
On the other hand, the share prices of telecommunication, cement and pharmaceutical sectors dropped by 0.7 per cent, 0.4 per cent and 0.1 per cent respectively.
The share prices of Eastern Cables Limited lost 8.74 per cent after the state-run company was sent to the ‘Z’ category, also known as the junk category, from Monday.
Of the 335 companies and mutual funds traded on the day, 199 advanced, 94 declined, and 40 remained unchanged.
The turnover at the DSE surged to Tk 561.80 crore on Monday compared with that of Tk 395.66 crore in the previous session mainly due to a block transaction worth Tk 180.75 crore by Khulna Power Company.
‘The capital bourse of the country broke the 13-day losing streak as opportunistic investors took position in undervalued stocks,’ said EBL Securities in its daily market commentary.
‘Investors were active from the beginning of the session and revealed their buying appetite throughout the session with some volatility in the first hour,’ it said.
DS30, the blue-chip index of the DSE, however, lost 0.09 per cent, or 1.92 points, to finish at 2,007.08 points.
Shariah index DSES added 0.23 per cent, or 2.93 points, to close at 1,268.31 points.
Intraco Refueling led the turnover chart for the third session with its shares worth Tk 28.56 crore changing hands.
Grameenphone, Bangladesh Export Import Company, BRAC Bank, Square Pharmaceuticals, Monno Ceramics, Legacy Footwear, IFAD Autos, United Power Generation Company and Keya Cosmetics were the other turnover leaders.
Prime Life Insurance gained most, adding 8.48 per cent while Karnaphuli Insurance Company was the worst loser, shedding 11.46 per cent. 

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