Stocks rebound on institutional investors’ supports

Staff Correspondent | Published: 00:00, Oct 30,2018

 
 

Dhaka stocks on Monday rebounded after a plunge in the previous session as institutional investors including state-run Investment Corporation of Bangladesh became active to halt the slide, market operators said.
DSEX, the key index of Dhaka Stock Exchange, advanced by 0.65 per cent, or 34.27 points, to close at 5,246.51 points on Monday after losing 69.80 points and hitting a 21-month low in the previous session.
The DSEX began with bearish trend but started going up in late hours as institutional investors including ICB went for buying shares to check the downfall at the market, market operators said.
They said that the institutional investors became active after a significant fall in the previous session to revive investors’ confidence on the market.
The merchant bankers and brokerage houses at a meeting with Bangladesh Securities and Exchange Commission on October 23 agreed to support the market when it required, they said.
Market operators said a section of investors also expected that the market would rise once ICB began injecting Tk 2,000 crore (bond sales proceeds) and the brokerage houses Tk 947 (proceeds of DSE share sales to a Chinese consortium) this week.
Some investors also went for bargain hunting after the recent fall, they said.
The average share prices of textiles, pharmaceuticals, bank and non-bank financial institution added 2.36 per cent, 1.34 per cent, 0.57 per cent and 0.21 per cent respectively.
The key index lost 200 points in just 12 trading days this month as political tension ahead of national elections took its toll on the market.
The tension intensified with the launch of a new political alliance, Jatiya Oikya Front, on October 13. The alliance has launched a campaign across the country, demanding free and fair national elections, market operators said.
The average share prices of cement, food and telecommunication fell by 1.26 per cent, 0.19 per cent and 0.05 per cent respectively on Monday.
The turnover on DSE increased to Tk 442.80 crore on Monday compared with that of Tk 371.71 crore in the previous trading session.
‘The core index started with negative vibe but within an hour investors started buying fresh stocks in the hope of taking position in the undervalued stocks,’ said EBL Securities in its daily market commentary.
Of the 336 companies and mutual funds traded on Monday, 199 advanced, 110 declined and 28 remained unchanged.
DS30, the blue-chip index of DSE, also gained 0.40 per cent, or 7.50 points, to close at 1,860.34 points.
Shariah index DSES added 0.71 per cent, or 8.68 points, to finish at 1,219.10 points.
Khulna Power Company led the turnover chart with its shares worth Tk 20.37 crore changing hands.
Monno Ceramics, Intech Limited, Peninsula Chittagong, Saiham Textile Mills, Alif Industries, Nurani Dyeing, BBS Cables, Grameenphone and Summit Power were the other turnover leaders.
Libra Infusions gained the most on the day with a 29.24-per cent increase in its share prices, while Khulna Printing and Packaging was the worst loser, shedding 27.80 points.

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