Dhaka stocks finished flat on Tuesday as a section of investors went for selling shares to book some profits while the others maintained their focus on the companies whose financial year ended in June, expecting good corporate results.
DSEX, the key index of the Dhaka Stock Exchange, added 0.004 per cent, or 0.23 points, to close at 5,227.49 points on Tuesday. The DSEX gained 40 points in last four sessions.
After a surge of 30 points within half an hour of the day, the market dropped sharply and ultimately finished the session flat as a section of investors went for profit-taking while the others kept buying shares on better dividend expectations, market operators said.
Investors booked profits after a rise in share prices of most of the companies in the previous three sessions.
The market, however, finished in the positive trajectory as some investors kept buying shares of sector-specific large capitalised scrips.
Market operators said investors expected that the listed companies, whose financial year ended in June, would start declaring better dividends and earnings results.
Usually, the financial year of the listed companies other than financial institutions and some multinational companies ended in June.
But, a non-bank financial institution — Investment Corporation of Bangladesh — closes its accounting year in June.
Investors shifted their attention from the financial scrips to the June-closing companies, market operators said.
Besides, Bangladesh Bank on Monday directed that the banks must maintain cash reserve ratio and statutory liquidity ratio for the banks against their exposure through offshore banking operations.
Market operators said investors feared that the rules might worsen liquidity situation in the financial sector.
The average share prices of bank sector dropped by 0.5 per cent, non-bank financial institution 0.4 per cent, life insurance 0.3 per cent and general insurance 0.29 per cent on the day.
EBL Securities in its daily market commentary said ‘Today's (Tuesday) market witnessed greater volatility though the market started
on positive note but failed to keep momentum as investors booked some profits with cautious stances.’
‘Moreover, investors were anxious of the possibility of extra liquidity pressure on the money market for the recent move taken by Bangladesh Bank regarding cash reserve ratio (CRR) and statutory liquidity ratio (SLR) rules for offshore banking operations of scheduled banks,’ it said.
However, the average share prices of telecommunication, textile, energy and engineering sectors advanced by 0.8 per cent, 0.75 per cent, 0.5 per cent and 0.2 per cent respectively.
The share prices of Grameenphone advanced for the second day on Tuesday by 0.9 per cent after continuous decline in recent days that added 5 points to the DSEX.
Out of the 353 scrips traded on Tuesday, 152 advanced, 143 declined and 58 remained unchanged.
Turnover on the bourse dropped to Tk 472.94 crore on Tuesday from Tk 485.36 crore in the previous session.
DS30, the blue-chip index of the DSE, however, shed 0.09 per cent, or 1.71 points, to close at 1,845.54 points.
DSE Shariah index DSES added 0.18 per cent, or 2.23 points, to close at 1,204.75 points. United Power Generation Company led the turnover chart with its shares worth Tk 30.07 crore changing hands.
Monno Ceramic Industries, Khulna Power Company, Monno Jute Stafflers, JMI Syringe, Bangladesh Shipping Corporation, Orion Infusion, Beacon Pharmaceuticals, Silco Pharmaceuticals and Fortune Shoes were the other turnover leaders.
Familytex Limited gained the most on the day with a 10-per cent increase in its share prices while Jute Spinners was the worst loser, shedding 7.41 per cent.
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