Dhaka stocks inched up on Monday after a two-day fall as a section of investors turned their focus to financial stocks after the recent downturn, but the rebound was capped by a heavy fall in the prices of shares of Grameenphone.
DSEX, the key index of Dhaka Stock Exchange, lost 0.05 per cent, or 3.15 points, to close at 5,326.44 points on Monday after losing 75.46 points in the previous two sessions.
The market began with bullish trend, gaining 32 points within half an hour of the day as some investors went for bargain hunting but the vibe did not sustain for long and finished the session with just 3 points up, market operators said.
Despite the gain in share prices of most of the large capitalised sectors including financial shares, the market finished flat as the plunge in the share prices of GP held down the index, they said.
The share prices of GP were hammered by 3.81 per cent with strong turnover that alone moved down the index by 30 points.
The share prices of the mobile operator continued declining, dipping 24 per cent from April 19 till Monday with just six positive days.
The banks and non-bank financial institutions advanced on Monday as investors went for bargain hunting after the prices of these shares dropped to almost one-year low, market operators said.
Moreover, the news of corporate tax cut pulled attention of a section of investors to the sector, expecting that the financial shares would see a positive direction as the tax cut would increase their profitability.
On June 7, finance minister AMA Muhith proposed the corporate tax on financial entities at 37.5 per cent in the national budget for the fiscal year of 2018-19.
The average share prices of NBFIs and bank sectors rose by 1.6 per cent and 0.15 per cent respectively. The average share prices of energy and food sector also increased on Monday.
Among the large-capitalised scrips, a surge in the share prices of United Power Generation Company, Investment Corporation of Bangladesh and British American Tobacco helped the market remain afloat.
The turmoil in the financial sector with staggering amount of defaulted loans, scams and huge amount of capital flight has been spooking the market from the very beginning of the year.
The International Monetary Fund in a report on Saturday mentioned a number of risk factors in Bangladesh economy, including political unrest related to national elections and further deepening of crises in the banks.
Moreover, a section of investors went for selling shares to get some cash to meet the Eid-centric expenses, market operators said.
The turnover at the DSE advanced to Tk 450 crore on Monday compared with that of Tk 407.72 crore in the previous session.
Of the 335 companies and mutual funds traded on the day, 157 declined, 137 advanced and 44 remained unchanged.
DS30, the blue-chip index of the DSE, lost 0.05 per cent, or 1.07 points, to finish at 1,952.97 points.
Shariah index DSES shed 0.11 per cent, or 1.40 points, to close at 1,228.46 points.
United Power Generation Company led the turnover chart with its shares worth Tk 32.70 crore changing hands.
Square Pharmaceuticals, Grameenphone, Pharma Aid, Alif Industries, Monno Ceramics, Popular Life Insurance, Bangladesh Export Import Company, Intraco Refueling Station and Legacy Footwear were the other turnover leaders.
Popular Life Insurance gained the most with a 9.90-per cent increase in its share prices, while Shyampur Sugar Mills was the worst loser, shedding 6.49 per cent.
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