Dhaka stocks gain as DSE moves to revive market

Staff Correspondent | Published: 00:00, Mar 26,2019 | Updated: 23:18, Mar 25,2019

 
 

Dhaka stocks on Monday ended a three-day losing streak as a section of institutional investors went for bargain hunting amid a Dhaka Stock Exchange’s move to figure out the causes of the recent bear run at the market.
DSE on the day held an emergency meeting with merchant banks, stockbrokers and asset management companies in this connection.
DSEX, the key index of DSE, added 0.32 per cent, or 17.99 points, to close at 5,530.07 points on Monday after losing 119 points in the previous three sessions.
The market began to gain from the beginning of the day and finished with a marginal gain as some investors went for bargain hunting following the bourse’s move to revive the market, market operators said.
They said the benchmark index witnessed a continuous fall in last eight weeks that eroded the investors’ confidence.
The market rebounded on Monday as some institutional investors, who felt optimistic about the meeting, went for buying shares, they said.
At the meeting, the stakeholders demanded placement share issuance policy, scrips netting, cutting interest rate on national savings certificates, raising mutual funds activity, enhancing transparency in corporate disclosure, cancelling initial public offering quota and formation of financial institution like Investment Coproraation of Bangladesh.
EBL Securities in its daily market commentary said, ‘The DSE called an emergency meeting today [Monday] to identify the reasons for the recent sharp fall in indices, which made investors hopeful regarding the market.’
‘The recent price correction of bank and fuel and power sectors encouraged investors to take fresh position in these sectors’ scrips,’ it said.
The share prices of telecommunication, textile, bank and energy sectors advanced by 2.0 per cent, 0.6 per cent, 0.41 per cent and 0.4 per cent respectively.
The share prices of Grameenphone surged by 2 per cent on Monday to extend the gaining streak to seven consecutive days as Bangladesh Telecommunication Regulatory Commission on March 19 withdrew the four conditions it imposed on leading mobile phone operator as significant market power.
Despite a marginal gain, the overall market scenario was dull and depressed as most of the investors remained on the sidelines to observe the next move of the market, market operators said.
They said that investors were caught off guard by the continuous fall in the market and poor corporate declaration by a number of financial entities.
Liquidity crisis in the financial sector also dempened the investors’ mood, they said.
The turnover on the bourse inched up to Tk 385.77 crore from that of Tk 354.35 crore in the previous trading session.
The average share prices of cement, engineering, food and pharmaceutical sectors dropped by 0.8 per cent, 0.6 per cent, 0.4 per cent and 0.2 per cent respectively.
Out of the 345 issues traded on the day, 111 declined, 184 advanced and 50 remained unchanged.
DSE blue-chip index DS30 gained 0.39 per cent, or 7.81 points, to close at 1,980.07 points.
Shariah index DSES added 0.35 per cent, or 4.49 points, to finish at 1,286.32 points.
Singer Bangladesh led the turnover leaders with its shares worth Tk 46.80 crore changing hands on the day.
Grameenphone, United Power Generation Company, British American Tobacco, Monno Ceramic Industries, BRAC Bank, JMI Syringes & Medical Devices, Legacy Footwear, Premier Bank and Dutch-Bangla Bank were the other turnover leaders.
Al-Arafah Islami Bank gained the most on the day with a 5.5 -per cent increase in its share prices while Singer Bangladesh was the worst loser, shedding 29.11 per cent.

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