Stocks rise in bargain hunting in slow trading

Staff Correspondent | Published: 00:00, May 23,2019

 
 

Dhaka stocks gained marginally on Wednesday after the fall in the previous two sessions as some investors went for bargain hunting purchases following more regulatory measures taken to revive the market.
Overall trading pattern on the bourse, however, was slow as most of the investors remained cautious amid the ongoing liquidity crisis and pre-budget and Ramadan slowness.
DSEX, the key index of DSE, gained 0.26 per cent, or 14.09 points, to close at 5,250.94 points on Wednesday after losing 99 points in the previous two sessions.
After a brief gain at the beginning of the day’s trading, the market moved downward sharply, but rebounded soon as investors went for bargain hunting share purchases, market operators said.
They said that some investors went for buying as the media reported that the state-run Investment Corporation of Bangladesh received Tk 856 crore from the Bangladesh Bank to invest in the capital market with a view to reviving the market from the bearish trend.
Besides, the Bangladesh Securities and Exchange Commission’s decision taken on Tuesday, imposing a number of restrictions on the companies’ directors who are non-compliant with the notification regarding holding of mandatory 2 per cent shares individually and 30 per cent jointly, encouraged some investors.
In addition, BSEC tightened companies’ bonus dividend declaration saying that no listed company could declare stock dividend except the reasons for business expansion, modernisation, reform and development of its quality.
The decision was welcomed by the investors in the market, said market operators.
But, overall mood of the market remained sluggish because of the cautious approach of most of the investors resulting in fall in turnover below Tk 300 crore.
EBL Securities in its daily market commentary said ‘The market started with optimistic vibe and continued till the end of session with slight volatility as opportunistic investors opted to take fresh position for re-establishing their portfolio with lucrative stocks.’
‘Moreover, the stocks rebounded after the news that the ICB received the money from the Bangladesh Bank under the capital market refinancing scheme.’
Therefore, average share prices of textile, non-bank financial institution, energy and pharmaceutical sectors advanced by 0.9 per cent, 0.71 per cent, 0.7 per cent and 0.1 per cent respectively.
Turnover at the bourse also slumped to Tk 290.54 crore from Tk 351.69 crore in the previous session.
Average share prices of cement, telecommunication and bank declined by 0.31 per cent, 0.3 per cent and 0.1 per cent respectively.
Out of the 344 issues traded, 191 advanced, 92 declined and 59 remained unchanged.
DSE blue-chip index DS30 added 0.41 per cent, or 7.53 points, to close at 1,830.32 points.
Shariah index DSES gained 0.11 per cent, or 1.31 points, to finish at 1,196.54 points.
Fortune Shoes led the chart of turnover leaders with its shares worth Tk 17.44 crore changing hands on the day.
BRAC Bank, JMI Syringe, United Power generation Company, Eastern Cables, SK Trims Ltd, Square Pharmaceuticals, Monno Ceramics, Runner Automobiles and Power Grid were the other turnover leaders.
Global Insurance Company gained the most on the day with a 9.61-per cent increase in its share prices while Rupali Life Insurance Company was the worst loser, shedding 7.15 per cent.

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