Dhaka stocks advanced for the second consecutive day on Tuesday, the last trading session before Eid-ul-Fitr holidays, as investors kept bargain hunting but concerns about the country’s financial sectors was yet to wane.
DSEX, the key index of Dhaka Stock Exchange, advanced by 0.72 per cent, or 38.77 points, to close at 5,365.22 points on Tuesday after gaining 3.15 points in the previous session.
The DSE will reopen on June 18 if Eid-ul-Fitr, one of the biggest religious festivals of the Muslims, is celebrated on June 16. If the Eid is celebrated on June 17, the market will reopen on June 19.
On Tuesday, the market opened bullish and had climbed more firmly with the progress of the session as investors kept bargain hunting share buying after the recent bear run, market operators said.
‘Investors continued their buying binge on undervalued stocks to take position on the lucrative price level in different stocks for rebalance their portfolios,’ said EBL Securities in its daily market commentary.
The market has been going through volatility in recent weeks as investors were unsettled on the trading floor amid banking sector woes, stockbrokers said.
The country’s messy financial sector and uncertainties over the general elections have been hurting the capital market, they said.
They said ‘irrational’ banking sector bailout by the government had attracted widespread criticisms.
The corporate tax cut for the financial entities, however, pulled attention of some investors to the sector for short term, expecting that the financial shares would see a positive direction as the tax cut would increase the entities’ profitability, they said.
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.
A surge in the share prices of Investment Corporation of Bangladesh, United Power Generation and Square Pharmaceuticals continued to lead the market.
The average share prices of NBFIs and bank sectors rose by 4.6 per cent and 0.6 per cent respectively.
The share prices of miscellaneous, energy and pharmaceuticals also joined the rally.
The market usually does not fall just one or two days before Eid vacation as investors usually do not sell shares in the period as they cannot cash their investment in one or two days, market operators said.
The share prices of Grameenphone continued falling with the company losing 0.64 per cent on Tuesday.
The turnover at the DSE inched up to Tk 457.86 crore on Tuesday compared with that of Tk 450 crore in the previous session.
Of the 335 companies and mutual funds traded on the day, 198 advanced, 88 declined and 53 remained unchanged.
DS30, the blue-chip index of the DSE, added 0.26 per cent, or 5.23 points, to finish at 1,958.21 points.
Shariah index DSES gained 0.79 per cent, or 9.72 points, to close at 1,238.18 points.
Khulna Power Company led the turnover chart with its shares worth Tk 22.22 crore changing hands.
Monno Ceramics, Pharma Aid, United Power Generation Company, Grameenphone, Square Pharmaceuticals, JMI Syringes & Medical Devices, Alif Industries, Legacy Footwear and Intraco Refueling Station were the other turnover leaders.
JMI Syringes gained the most with a 9.96-per cent increase in its share prices, while Berger Paints Bangladesh was the worst loser, shedding 46.87 per cent.
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