Dhaka stocks gain amid surge of MNCs

Staff Correspondent | Published: 00:00, Feb 08,2019


Dhaka stocks increased on Thursday as investors went for buying shares especially multinational company (MNC) scrips ahead of their corporate declarations.
DSEX, the key index of Dhaka Stock Exchange, advanced by 0.44 per cent, or 25.91 points, to close at 5,811.92 points on Thursday after losing 42 points in the previous two sessions.
The market started surging from the very beginning of the day and ultimately finished in the positive territory as investors went for buying shares especially the MNCs, market operators said.
They said investors purchased MNC shares amid expectations of better earnings and dividends from the companies for the year of 2018.
Share prices of all the 12 MNC scrips advanced on the day while a surge in share prices of Berger, British American Tobacco and Heidelberg Cement also contributed to the gain on the day.
Besides, relaxation of the loan write-off policy by Bangladesh Bank for banks also put an impact on the market on the day, market operators said.
They said the investors’ reaction to the central bank’s policy was mixed.
They said a section of investors anticipated that the new rules would increase liquidity in the financial market.
BB on Wednesday relaxed the loan write-off policy, enhancing banks’ authority for writing off bad loans without filing lawsuit for recovery.
Financial experts however, said that the policy would abet the wilful defaulters in continuing their unscrupulous activities that would hurt the financial sector in the long run.
Average share prices of non-bank financial institutions and bank increased by 0.04 per cent and 0.02 per cent respectively on the day.
Average share prices of miscellaneous, pharmaceutical and energy sectors advanced by 4.1 per cent, 1.0 per cent and 0.7 per cent respectively.
‘The core index remained upward throughout the session as investors kept buying fresh stocks especially MNC scrips to rebalance their portfolios ahead of earnings and yearly disclosures,’ said EBL Securities in its daily market commentary.
The turnover on DSE increased to Tk 772.97 crore on Thursday compared with that of Tk 766.84 crore in the previous trading session.
Of the 336 companies and mutual funds traded on Thursday, 145 declined, 161 advanced and 40 remained unchanged.
DSE blue-chip index DS30 advanced by 0.17 per cent, or 3.51 points, to close at 2,026.09 points.
Shariah index DSES added 0.86 per cent, or 11.36 points, to finish at 1,323.40 points.
United Power Generation Company led the turnover leaders with its shares worth Tk 76.04 crore changing hands on the day.
Bangladesh Submarine Cable Company, Legacy Footwear, Berger Paint Bangladesh, Sonar Bangla Insurance, Shurwid Industries, Doreen Power, Provati Insurance, BRAC Bank and Fortune Shoes were the other turnover leaders.
Bangladesh Submarine Cable Company gained the most on the day with a 9.91-per cent increase in its share prices, while Bangladesh National Insurance was the worst loser, shedding 9.93 per cent.

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