Stocks rally for 2nd day as MPS fear wanes

Staff Correspondent | Published: 22:53, Aug 01,2018 | Updated: 23:24, Aug 01,2018

 
 

Dhaka stocks surged for the second day on Wednesday as investors continued buying shares, especially the financial scrips, as the Bangladesh Bank’s new monetary policy withered away investors’ fear of it impacting market negatively.
The central bank on Tuesday unveiled the monetary policy statement for the first half (July-December) of the current fiscal year (2018-19) without any major changes in the policy.
DSEX, the key index of Dhaka Stock Exchange, advanced by 0.85 per cent, or 45.56 points, to close at 5,348.20 points on Wednesday after gaining 39.72 points in the previous trading session.
In line with the previous session, the market started gaining from the very beginning of Wednesday’s session and the momentum prevailed until the end of the session as investors went on with buying shares after the BB unveiled the MPS without any major changes in the policy, market operators said.
Before the two-day rise, investors had been selling shares in the previous five days, dragging down the DSEX to a 19-month low as they feared that the new MPS could adversely impact the financial market.
In the new MPS, the central bank, however, made no changes regarding interest rates and policies and kept the private sector credit growth rate unchanged at 16.8 per cent ahead of the national election, expected to be held at the end of this year.
A section of investors also kept buying shares at lower prices after the recent fall, market operators said.
The financial sectors led Wednesday’s rally for another session with non-bank financial institutions and banks soared by 2.14 per cent and 2.06 per cent respectively.
Besides the financial sectors, the average share prices of telecommunication, cement and pharmaceuticals also advanced on the day.
Among the prominent scrips, a surge in the share prices of Square Pharmaceuticals, Grameenphone and BRAC Bank contributed most to the rally.
‘The capital bourse of the country closed in positive as investor possessed optimistic view after the announcement of monetary policy. The market has remained cheerful and the bank sector played the dominant part in moving the index straight up throughout the session,’ said EBL Securities in its daily market commentary.
Turnover on the DSE also increased slightly to Tk 740.62 crore on Wednesday compared with that of Tk 732.42 crore in the previous trading session.
Of the 337 companies and mutual funds traded, 169 advanced, 124 declined, and 43 remained unchanged.
DS30, the blue-chip index of the DSE, also gained 0.68 per cent, or 12.83 points, to close at 1,894.30 points.
Shariah index DSES added 0.47 per cent, or 5.9 points, to finish at 1,257.08 points.
BBS Cables led the turnover chart with its shares worth Tk 31.79 crore changing hands.
Fortune Shoes, United Power Generation Company, BD Thai, IFAD Autos, Saiham Textile Mills, KDS Accessories, Simtex Industries, Ratanpur Steel Re-Rolling Mills and Hamid Fabrics were the other turnover leaders.
IPDC Finance gained the most on the day with a 9.85-per cent increase in its share prices, while Meghna Pet Industries was the worst loser, shedding 10 per cent.

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