Dhaka stocks bounce back on institutional buying

Staff Correspondent | Published: 00:00, Apr 19,2019 | Updated: 23:14, Apr 18,2019

 
 

Dhaka stocks bounced back on Thursday after a slight gain in the previous day as some institutional investors including state-run Investment Corporation of Bangladesh continued buying shares to regain investors’ confidence amid regulatory intervention.
Investor’s confidence was shattered by the recent market plunge with the Dhaka Stock Exchange’s key index, DSEX, lost around 640 points in last three and a half months.
On Thursday, DSEX advanced by 0.17 per cent, or 61.99 points, to close at 5,321.41 points after gaining 10.49 points in the previous session.
Market operators said the market began to rise from the very beginning of the day and climbed more sharply as the session progressed amid institutional buying.
They said that the institutional investors went for ‘bottom fishing’ after the relentless fall in the share prices.
Following criticisms and protests against a prolonged bear run on the market, Bangladesh Securities and Exchange Commission chairman M Khairul Hossain initiated moves to recover the market, they said.
National Board of Revenue chairman Mosharraf Hossain Bhuiyan on Tuesday clarified that taxpayer identification number would not be required to open beneficiary owners’ account for investment in the capital market.
Market operators said the clarification might ease the investors’ nerve as a rumour in this connection had made investors worried.
The average share prices of energy sector advanced by 2.88 per cent, textile by 2.53 per cent, bank by 1.05 per cent and non-bank financial institution by 0.27 per cent.
Investors lost confidence over the market as the regulator continuously failed to address manipulations and wrongdoings and introduce new products, and it approved weak companies’ IPO with huge amount of placement shares, market operators said.
Besides, the liquidity shortage in the financial sector was also a concern among investors.
The Grameenphone’s tussle with the telecom regulator over Tk 12,500 crore in dues added fuel to the volatility.
On Thursday, the share prices of GP declined by 1.2 per cent as the media reported on the day that its minimum call rate would be increased as part of the restrictions it faced for being declared a significant market power.
EBL Securities in its daily market commentary said, ‘Investors were active from the beginning and revealed their buying appetite throughout the session as opportunistic investors took position with lucrative price levels particularly on large-cap stocks.’
Of the 345 issues traded at DSE on Wednesday, 248 advanced, 57 declined and 40 remained unchanged.
The turnover on the bourse increased to Tk 352.13 crore on Thursday from that of Tk 314.54 crore in the previous trading session.
DSE blue-chip index DS30 also added 0.90 per cent, or 17.07 points, to close at 1,897.58 points.
Shariah index DSES gained 0.86 per cent, or 10.57 points, to finish at 1,227.61 points.
Bangladesh Submarine Cable Company led the chart of turnover leaders with its shares worth Tk 17.55 crore changing hands on the day.
United Power Generation Company, Monno Ceramic Industries, Fortune Shoes, Bangladesh Shipping Corporation, National Tubes, Standard Ceramics, Esquire Knit, Monno Jute Stafflers, SK Trims Industries and Eastern Cables were the other turnover leaders.
Bangladesh Shipping Corporation gained the most on the day with a 9.83-per cent increase in its share prices while Savar Refractories was the worst loser, shedding 6.86 per cent.

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