Stocks surge for 2nd day

Staff Correspondent | Published: 01:50, Oct 31,2018 | Updated: 01:55, Oct 31,2018

 
 

Dhaka stocks soared for the second session on Tuesday as investors went on buying shares heavily as they anticipated that DSE stockbrokers would start investing in the market the proceeds of the bourse’s share sales to a Chinese consortium.
DSEX, the key index of Dhaka Stock Exchange, added 1.00 per cent, or 52.56 points, to close at 5,299.07 points on Tuesday after gaining 34.27 points in the previous session.
The DSEX opened with bullish trend, gaining 64 points within half an hour of the day, and maintained the vibe until the end of the session as investors went on buying shares heavily anticipating the start of Tk 900 crore investments by DSE members, market operators said.
They said that investors anticipated that the stockbrokers would start investing in the market the share sales proceeds on Tuesday after the National Board of Revenue on Monday approved 5 per cent tax, lowering it from 15 per cent, levied on their capital gains from share sales to the Chinese consortium.
DSE officials said the stockbrokers could start the investment of the proceeds within a couple of days as a statutory regulatory order in this connection was yet to be issued by NBR.
A Chinese group of Shenzhen and Shanghai stock exchanges deposited Tk 947 crore against 45,09,44,125 ordinary shares of DSE on September 4, but the amount could not be distributed to the DSE members before settling the tax issue.
Besides, a section of investors also expected that the market would rise once ICB began to inject Tk 2,000 crore (bond sales proceeds) in the capital market.
Some investors also went on bargain hunting after the recent fall, they said.
The average share prices of textiles, banks, non-bank financial institutions and pharmaceuticals advanced by 2.31 per cent, 1.50 per cent, 1.37 per cent and 0.76 per cent respectively on Tuesday.
Out of the 29 traded bank scrips, 22 advanced, just three declined and four remained unchanged, while out of the 23 NBFIs, 17 advanced, four declined and two remained unchanged.
On the other hand, many investors were cautious on the trading floor amid rising political activities ahead of national elections due in three months, stockbrokers said.
They said some investors kept an eye on the election schedule that might be announced on November 4.
EBL Securities in its daily market commentary said that the core index remained upward throughout the session as optimistic behaviour from investors sustained as earnings and corporate declarations from several companies met investors’ expectations.
The turnover on DSE increased to Tk 552.49 crore on Tuesday compared with that of Tk 442.80 crore in the previous trading session.
Of the 336 companies and mutual funds traded on Tuesday, 231 advanced, 73 declined and 34 remained unchanged.
DS30, the blue-chip index of DSE, also added 0.87 per cent, or 16.36 points, to close at 1,876.70 points.
Shariah index DSES gained 0.60 per cent, or 7.33 points, to finish at 1,226.44 points.
Khulna Power Company led the turnover chart with its shares worth Tk 48.84 crore changing hands.
Shahjalal Islami Bank, Summit Power, Pharma Aid, Advent Pharma, Nurani Dyeing, Saiham Textile Mills, VFS Thread Dyeing, United Power Generation Company and BBS Cables were the other turnover leaders.
SK Trims and Industries gained the most on the day with a 10-per cent increase in its share prices, while Standard Ceramic Industries was the worst loser, shedding 7.46 points.

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