Dhaka stocks inch up after 3-day fall

Staff Correspondent | Published: 00:00, Nov 18,2019

 
 

Dhaka stocks inched up on Sunday, ending a three-day fall as some investors went for bargain hunting while many others remained cautious amid poor financial disclosures.

DSEX, the key index of Dhaka Stock Exchange, gained 0.14 per cent, or 7.08 points, to close at 4,717.39 points on Sunday after losing 70 points in the previous three sessions.

The trading at the market was choppy throughout the session and closed in the positive territory as a section of investors went for bargain hunting while many others continued with cautious trading, market operators said.

They said that share prices of most of the companies decreased to a lucrative level that lured some investors into investing at the stock market.

Besides, some companies including Paramount Textile, Desco, Baraka Power and Bangladesh Submarine Cable Company declared profit growth for the July-September period.

Share prices of Grameenphone advanced by 1.30 per cent on Sunday as the company agreed to pay some amount of an audit claim and investors hoped that prolonged dispute of the mobile operator with the telecom regulator over the audit claim might be settled soon.

The market gained slightly on Sunday as most of the investors hesitated to make any investment decision before getting any sign of respite from the relentless fall in share prices, market operators said.

A 10-month downward trend at the market eroded the investors’ risk-taking appetite, they said.

They said poor financial disclosures by a number of companies made investors more worried.

Profits of Shasha Denims dropped to Tk 0.39 per share in the July- September period this year compared with that of Tk 1.71 per share in the same period of the previous year.

Profits of a number of more companies including GPH Isphat, IFAD Autos, Aamra Networks, New Line Clothings and Bashundhara Paper Mills dropped in this period.

Market operators said that the capital market was grappling with a number of issues including volatility in the financial sector, poor corporate governance, lack of regulatory measures to improve the market, and approval of weak initial public offerings.

EBL Securities in its daily market commentary said ‘Throughout the session, the index displayed a mix trend as risk averse investors kept on dumping their holdings amidst confidence crisis on the overall market outlook while bargain hunting investors took position on sector specific issues considering lucrative price level.’

The average share prices of cement, energy, bank and textile sectors dropped by 0.9 per cent, 0.5 per cent, 0.2 per cent and 0.1 per cent respectively on Sunday.

The average share prices of telecommunication, non-bank financial institution and pharmaceutical sectors advanced by 1.4 per cent, 1.0 per cent and 0.4 per cent respectively.

Turnover on the bourse increased to Tk 363.68 crore on Sunday from Tk 319.09 crore in the previous day.

Out of the 350 scrips traded on the day, 124 declined, 167 advanced and 57 remained unchanged.

The DSE blue-chip index, DS30, added 0.25 per cent, or 4.12 points, to close at 1,642.36 points.

Shariah index DSES gained 0.25 per cent, or 2.77 points, to end at 1,083.69 points.

National Tubes led the turnover chart with its shares worth Tk 15.17 crore changing hands on the day.

Bangladesh Submarine Cable Company, Sonar Bangla Insurance, LankaBangla Finance, Standard Ceramics, Wata Chemical, National Polymer, Global Insurance and Shurwid Industries were the other turnover leaders.

BD Autocars gained the most on the day with a 9.98-per cent increase in its share prices while Far East Knitting & Dyeing Industries performed the worst, losing 13.82 per cent.

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