Stocks gain for 2nd day on bank shares’ rally

Staff Correspondent | Published: 00:05, Aug 09,2018 | Updated: 22:23, Aug 08,2018

 
 

Dhaka stocks increased for the second day on Wednesday as investors kept purchasing shares mostly bank scrips after their worries over the student protests for safe roads waned.
DSEX, the key index of the Dhaka Stock Exchange, increased by 0.44 per cent, or 24.06 points, to close at 5,405.95 points on Wednesday after gaining 28.47 points in the previous trading session.
The market was slow at the beginning of the day’s session but rose sharply soon after as investors went on with purchasing shares, especially those of banks, amid reshuffling their portfolios.
A section of investors turned their focus to large-capitalised companies after the DSE moved to crack down on 15 junk companies that have not been providing dividends for more than five years and the companies have become unqualified to remain listed at the bourse as per its listing regulations.
However, the share prices of some of these companies including Meghna Pet Industries, Dulamia Cotton and Beximco Synthesis soared on Wednesday amid rumours that the companies would provide dividends this year.
Before the two days’ gain, the market had decreased in two sessions as the student protests that began after two students were killed by a speeding bus in Dhaka on July 29 took a violent turn on Saturday and the situation worsened in the following two days. The protests, however, began to wane on Tuesday.
The market was slow at the beginning of the session as investors took cautious stance as finance minister AMA Muhith on Tuesday said that there would not be any change in interest rates for the savings certificates before the next general elections, likely to be held by the end of this year.
Market operators said some investors, however,
continued to buy shares with an expectation that banks would cut interest rate to single digit from today.
The finance minister earlier said that the banks would have to cut interest rate to single digit from August 9.
Investors apprehended that most of the non-financial companies would be benefitted with the reduced lending rate, market operators said.
The bank sector led the rally for another session with a gain in the share prices by 2.2 per cent on Wednesday.
Out of the 30 traded bank scrips, 28 advanced and just two declined on Wednesday.
Besides the bank sector, the share prices of food and engineering advanced by 1.5 per cent and 0.3 per cent respectively.
The average share prices of textiles, telecommunication, energy, and non-bank financial institutions dropped by 2.5 per cent, 1.9 per cent, 0.6 per cent and 0.1 per cent respectively.
Turnover on the DSE also increased to Tk 724.44 crore on Wednesday compared with that of Tk 710.52crore in the previous trading session.
Of the 337 companies and mutual funds traded, 163 declined, 141 advanced and 34 remained unchanged.
DS30, the blue-chip index of the DSE, also added 0.18 per cent, or 3.45 points, to close at 1,905.29 points.
Shariah index DSES, however, lost 0.31 per cent, or 4.00 points, to finish at 1,251.73 points.
Aman Cotton Fibrous led the turnover chart with its shares worth Tk 35.25 crore changing hands.
BBS Cables, Legacy Footwear, Paramount Textile, The Peninsula Chittagong, Monno Ceramics, United Power Generation Company, Regent Textiles, Simtex Industries, BRAC Bank and Saiham Textile Mills were the other turnover leaders.
National Life Insurance Company gained the most on the day with a 9.95-per cent increase in its share prices, while Shyampur Sugar Mills was the worst loser, shedding 9.98 per cent.

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