Dhaka stocks inched down on Thursday after a brief gain in the previous session as investors remained cautious on concerns over the current liquidity crisis in the financial sector while some others continued buying shares amid the ongoing regulatory efforts to prop up the market.
DSEX, the key index of Dhaka Stock Exchange, lost 0.01 per cent, or 0.34 points, to close at 5,250.59 points on Thursday after gaining 14.09 points in the previous session.
The trading on the bourse was rough with few ups and downs that ultimately settled in the negative zone as investors were active on the both sides of the trading fence, market operators said.
They said that some investors continued buying shares after the media reported that state-run Investment Corporation of Bangladesh was injecting in the capital market from the Tk 760-crore fund it received from Bangladesh Bank to revive the market that has remained volatile in recent months.
Investors also welcomed some of the tough measures taken by the market regulator pertaining to the bonus dividend and minimum shareholding by the directors of the listed companies. The Bangladesh Securities and Exchange Commission’s decision made on Tuesday regarding 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, market operators said.
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 average share prices of textile sector advanced by 0.5 per cent, energy by 0.41 per cent, bank by 0.4 per cent and non-bank financial institution by 0.1 per cent.
Turnover at the bourse increased to Tk 319.48 crore from Tk 290.54 crore in the previous session.
On the flip side, many investors remained cautious about the ongoing liquidity crisis in the financial sector.
The media reported that the crisis became severe at a number of banks hampering their business operations.
EBL Securities in its daily market commentary said, ‘The market displayed choppy trading throughout the session as investors opted to book quick gain from their portfolios ahead of Eid festival and many investors were also concerned about the upcoming national budget declaration.’
The average share prices of telecommunication, cement and food sectors dropped by 1.4 per cent, 0.3 per cent and 0.2 per cent respectively.
Out of the 344 issues traded, 129 advanced, 164 declined and 47 remained unchanged.
DSE blue-chip index DS30 added 0.13 per cent, or 2.49 points, to close at 1,832.81 points.
Shariah index DSES shed 0.30 per cent, or 3.64 points, to finish at 1,192.89 points.
Prime Finance led the chart of turnover leaders with its shares worth Tk 22.12 crore changing hands on the day.
BRAC Bank, Runner Automobiles, United Power Generation Company, Eastern Cables, Monno Ceramics, Fortune Shoes, Grameenphone, Prime Islami Life Insurance and Doreen Power were the other turnover leaders.
Premier Leasing and Finance gained the most on the day with a 9.52-per cent increase in its share prices while United Commercial Bank was the worst loser, shedding 13.47 per cent.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Stocks