Stocks snap 5-day fall as MPS reveals no major changes

Staff Correspondent | Published: 01:41, Aug 01,2018

 
 

Dhaka stocks snapped a five-day losing spell on Tuesday as investors went for bargain hunting following the announcement of new monetary policy by Bangladesh Bank without bringing in any major change in the policy.
The central bank Tuesday morning unveiled the monetary policy statement for the first half (July-December) of the current fiscal year (2018-19).
DSEX, the key index of Dhaka Stock Exchange, advanced by 0.75 per cent, or 39.72 points, to close at 5,302.63 points on Tuesday after losing 86 points in the previous five trading sessions.
The market started with vibrant momentum, gaining 60 points at one point of the day as fears over the monetary policy ebbed as the central bank brought in no major changes in the statement.
Before the MPS declaration, the market had witnessed five consecutive negative sessions as investors remained cautious on the trading floor.
In the MPS, the central bank made no changes regarding interest rate and policies and kept the private sector credit growth rate unchanged at 16.8 per cent.
Meanwhile, the DSE on Tuesday hailed the BB’s new monetary policy as the policy emphasised the capital market and bond market as sources of financing other than banks for the non-financial corporates.
The recent strategic investment by a Chinese consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange is expected to improve capacity and accelerate the development of capital market, the BB said in the new MPS.
All the large capitalised sectors except cement surged on Tuesday, while the financial sectors led the rebound of the market with non-bank financial institutions and banks increased by 0.8 per cent and 0.5 per cent respectively.
Besides the financial sectors, energy, engineering and telecommunication added 2.1 per cent, 1.5 per cent and 0.3 per cent respectively.
Among the large capitalised scrips, a surge in the share prices of United Power Generation, Grameenphone and Square Pharmaceuticals contributed most to the market rebound on Tuesday.
On the day, a number of banks including Dhaka Bank, Premier Bank and Bank Asia declared profit growth for the second quarter (April-June) period compared with that in the same period in the previous year.
Turnover on the DSE also increased to Tk 732.42 crore on Tuesday compared with that of Tk 614.56 crore in the previous trading session.
Of the 337 companies and mutual funds traded, 190 declined, 104 advanced and 41 remained unchanged.
DS30, the blue-chip index of the DSE, also gained 0.51 per cent, or 9.72 points, to close at 1,881.46 points.
Shariah index DSES added 0.82 per cent, or 10.26 points, to finish at 1,251.18 points. United Power Generation Company led the turnover chart with its shares worth Tk 35.22 crore changing hands.
BBS Cables, Fortune Shoes, Saiham Textile Mills, Singer Bangladesh, KDS Accessories, The Peninsula Chittagong, Legacy Footwear, Simtex Industries and Monno Ceramics were the other turnover leaders.
Alif Industries gained the most on the day with a 9.92-per cent increase in its share prices, while Shyampur Sugar Mills was the worst loser, shedding 9.88 per cent.

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