Dhaka stocks rise amid continuous see-sawing

Staff Correspondent | Published: 00:00, Nov 06,2019

 
 

Dhaka stocks rose on Tuesday on bargain hunting as the key index of the bourse continued to seesaw with investors lacking the confidence in invest in the market.

In the last six trading sessions, the DSEX, the prime index of the Dhaka Stock Exchange, fell and rose on every alternate day in volatile trading.

The DSEX gained 0.54 per cent, or 25.34 per cent, to close at 4,703.70 points on Tuesday, after shedding 33.72 points on the previous day.

The market started in a positive mood on Tuesday with the DSEX rising more than 25 points in the first 17 minutes as some of the investors went on bargain hunting buys, braving the worries over the country’s economic situation that had dragged down the market on Monday.

After 45 minutes of trading, the DSEX, however, started to fall before rising again and closing in a positive zone as BRAC Bank led the upsurge.  

Market operators said that although the DSEX had risen on the day, many investors remained on edge following months-long turmoil in the share market led by concerns over the country’s economy and financial market health.

Stocks fell sharply on the previous trading session on Monday after the Centre for Policy Dialogue on Sunday said that the macroeconomic stability of the country had now become weaker and performance of economic indicators was under mounting pressure which might lead to a structural slowdown in the economy.

Concerning the country’s stock market, the CPD identified five institutional and governance related weakness — poor quality initial public offerings, anomalies in financial reporting, lack of transparency in BO accounts, suspicious trading at secondary market and questionable role of institutional investors.

The foreign investors have also been continuously withdrawing funds from the capital market, making the situation worse.

‘The main index of DSE has been hovering around 4,700-points mark for the last few days. Some investors think the index is now at its bottom while others fear it might go down further. As a result, the DSEX saw see-sawing movements in the last six days,’ said a stockbroker.

He said that some of the investors were eyeing quarterly reports for July-September and buying specific scrips in the hopes of better performance of the companies, after declaration of poor dividends by a large number of companies for the year ended in June, 2019.

EBL Securities, in its daily market commentary on Tuesday, said, ‘Index witnessed an upward trend from the beginning of today’s session amidst investor’s active participation, in spite of mid-session volatility, index advanced by 25 points caused by investors’ buying frenzy at the end of the session. However, many investors liquidated their shares from telecommunication, fuel and power sectors to avoid further losses.’

The average share prices of most of the sectors rose on the day.

Among the gaining sectors, share prices of the paper sector rose by 3.5 per cent, travel by 2.5 per cent, engineering by 1.6 per cent, textile by 1.5 per cent, services by 1.4 per cent and bank by 0.7 per cent.

Share prices of the tannery sector dropped by 0.8 per cent, information technology by 0.5 per cent and telecom by 0.4 per cent.

Turnover on the DSE rose to Tk 307.76 crore on Tuesday from Tk 269 crore on the previous day.

Out of the 350 scrips traded on the day, 192 advanced, 101 declined and 57 remained unchanged.

The DSE blue-chip index, DS30, gained 0.65 per cent, or 10.53 points, to close at 1,637.14 points.

Shariah index DSES advanced by 0.64 per cent, or 6.44 points, to end at 1,081.39 points.

BRAC Bank led the turnover chart with its shares worth Tk 15.67 crore changing hands on the day.

National Tubes, VFS Thread Dyeing, Sonar Bangla Insurance, Shurwid Industries, Square Pharmaceuticals, Silva Pharmaceuticals, Standard Ceramics, Coppertech Industries and Fortune Shoes were the other turnover leaders.

Yeakin Polymar gained the most on the day with a 10-per cent increase in its share prices while Meghna Pet Industries performed the worst, losing 6.74 per cent.

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