Stocks break 7-day losing streak on bargain hunting

Staff Correspondent | Published: 00:00, Jul 17,2019

 
 

Dhaka stocks snapped a seven-day fall on Tuesday as some investors especially the institutional ones went for bargain hunting while the others maintained cautious approach amid financial sector volatility.

DSEX, the key index of Dhaka Stock Exchange, advanced by 0.64 per cent, or 32.96 points, to close at 5,124.44 points on Tuesday after losing 289 points in the previous seven consecutive sessions.

Market operators said the DSEX started rising on Tuesday as some institutional investors went for bargain hunting after the recent fall in share prices.

The market lost 330 points in the previous 10 sessions due to People’s Leasing and Financial Services (PLFS) liquidation move, penalty tax on listed companies, gas price hike and Grameenphone woes, dipping the DSEX to a 30-month low on Monday.

Sea Pearl Beach Resort & Spa Limited made its debut on the DSE on Tuesday and received huge response from investors. The share prices of the company shot up by 267 per cent to end the session at Tk 36.40 each. The hotel issued its shares at Tk 10 each in the initial public offering. On Tuesday, the company’s price earnings (PE) ratio became 51.51, which put the company in the danger zone in terms of PE ratio.

PE ratio at 40 or above signifies the danger zone, according to DSE sources.

EBL Securities in its daily market commentary said, ‘The index kept its upward movement till the end of the session with some volatility. Most of the investors were active from both sides of the trading fence. Meanwhile, Sea Pearl Beach Resort & Spa Limited had a flying debut.’

The average share prices of telecommunication sector advanced by 1.2 per cent, bank by 0.7 per cent, non-bank financial institution by 0.69 per cent and textile by 0.4 per cent.

Turnover on the bourse dropped to Tk 271.76 crore on Tuesday from Tk 306.06 crore in the previous session.

Many investors preferred to be on the sidelines on Tuesday to observe the next move of the market, stockbrokers said.

They said investors remained worried over the volatile financial market that further exposed by the government’s move to wind up PLFS.

The media reported that the High Court on Sunday accepted the prayer of Bangladesh Bank for PLFS’ liquidation for hearing and the court also appointed BB deputy general manager Md Asaduzzaman Khan as provisional liquidator of PLFS.

Out of the 353 scrips traded on the day, 222 advanced, 94 declined and 36 remained unchanged.

DS30, the blue-chip index of DSE, added 0.60 per cent, or 10.96 points, to close at 1,829.48 points.

DSE’s Shariah index DSES advanced by 0.76 per cent, or 8.92 points, to close at 1,175.29 points.

Sea Pearl Beach Resort led the turnover chart with its shares worth Tk 15.41 crore changing hands.

Fortune Shoes, BRAC Bank, Bangladesh Shipping Corporation, Sinobangla Industries, United Power Generation Company, Grameenphone, Dhaka Insurance, Square Pharmaceuticals and Federal Insurance Company were the other turnover leaders.

SEML FBLSL Growth Fund gained the most on the day with a 9.95-per cent increase in its share while First Finance was the worst loser, shedding 10 per cent.

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