Dhaka stocks’ slump halted but turnover dips to 4-month low

Staff Correspondent | Published: 03:38, Oct 24,2018

 
 

Dhaka stocks ended flat on Tuesday after a steep fall in the previous two sessions as investors, encouraged by a regulatory intervention to check the plunge, went for bargain hunting, market operators said.
They said though the market finished with a slight gain, investors’ participation fell further and the turnover at Dhaka Stock Exchange reached more than four-month low as investors were assessing the risk factors ahead of the national elections.
DSEX, the key index of DSE, added just 0.01 per cent, or 0.71 points, to close at 5,252.67 points on Tuesday after losing 130 points in the previous two sessions.
The market went through a choppy trading session on Tuesday but finished in positive territory as the regulators intervened to stem the market plunge.
Led by Bangladesh Securities and Exchange Commission executive director Saifur Rahman different stakeholders on Tuesday morning held a meeting at the Investment Corporation of Bangladesh office premises in Dhaka to discuss the current market situation.
They highlighted investors’ excessive anxieties surrounding the national polls due in three months.
Saifur said ICB would start investing 75 per cent of Tk 2,000 crore (bond sales proceeds) in the market from the next week, which would increase liquidity in the market.
He also said that the stakeholders would support the market when it needed.
Besides, a committee was formed to monitor the market situation. ICB managing director Kazi Sanaul Hoq was made convener of the committee.
The decisions taken at the meeting would be placed before the commission, Saifur said.
DSE Brokers Association president Mostaque Ahmed Sadeque and Bangladesh Merchant Bankers Association president Nasir Uddin Chowdhury were also present at the meeting, among others.
DSE managing director KAM Majedur Rahman said that worries ahead the national elections prevailed at the market as it happened in other countries also.
He also said that the foreign investors also became cautious that also affected the market.
The share prices of Grameenphone soared by 1.62 per cent on the day as the company posted 27.63 per cent profit growth in the July-September period compared with that in the same period of the previous year.
Some investors might also go for bargain hunting after recent fall, market operators said.
The average share prices of telecommunication, cement and bank increased by 1.88 per cent, 1.67 per cent and 0.11 per cent respectively.
The turnover on DSE dropped further to Tk 379.40 crore on Tuesday compared with that of Tk 439.59 crore in the previous trading session. Tuesday’s turnover was the lowest after May 31 when it was at Tk 361.8 crore.
The media reported that the newly announced alliance of opposition parties, Jatiya Oikya Front, will hold its first rally in Sylhet today. The platform also declared to hold joint programmes in the coming days to press for its seven-point demand for holding a free and fair national election.
Market operators said investors were also watching the market trend ahead of the announcement of the schedule for the next parliamentary elections.
Election Commission secretary Helal Uddin Ahmed on October 18 said the schedule for the next parliamentary elections would be announced in the first week of November.
The average share prices of energy, textile and pharmaceuticals sectors declined by 0.80 per cent, 0.53 per cent and 0.25 per cent respectively.
Of the 336 companies and mutual funds traded on Tuesday, 154 declined, 135 advanced, and 53 remained unchanged.
DS30, the blue-chip index of DSE, also gained 0.24 per cent, or 4.63 points, to close at 1,863.96 points.
Shariah index DSES added 0.20 per cent, or 2.45 points, to finish at 1,211.95 points.
Delta Life Insurance Company led the turnover chart with its shares worth Tk 26.66 crore changing hands.
Khulna Power Company, Summit Power, Grameenphone, Dragon Sweater, Square Pharmaceuticals, BBS Cables, United Power Generation Company, Bangladesh Export Import Company and Monno Ceramics were the other turnover leaders.
Delta Life Insurance Company gained the most on the day with a 7.88-per cent increase in its share prices, while the IBN SINA Pharmaceutical Industry was the worst loser, shedding 12.07 per cent.

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