Stocks inch up for 2nd day on recovery hope

Staff Correspondent | Published: 00:00, Nov 19,2019


Dhaka stocks gained slightly for the second day on Monday as a section of investors continued with bargain hunting in anticipation of a quick market recovery while many others remained cautious.

DSEX, the key index of Dhaka Stock Exchange, inched up by 0.09 per cent, or 4.62 points, to close at 4,722.01 points on Monday after gaining 7.08 points in the previous session.

The market was choppy throughout the session on Monday and finished the day with a slight gain as investors were active on both sides of the trading fence, market operators said.

They said that a section of investors, especially the institutional ones, came forward to invest in undervalued stocks.

Due to prolonged downward trend, the share prices of most of the companies reached bottom and investors are expecting that share prices of the companies would rebound soon, they said.

Many investors, however, remained cautious on the trading floor and hesitated to invest in the ailing market, they said.

The country’s capital market remained bearish in last 10 months that made investors concerned about its immediate recovery.

Many companies declared profit fall in the July-September period that also dampened the investors’ mood.

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

State-run Investment Corporation of Bangladesh declared loss of Tk 1.93 per share for July-September this year compared with profits of Tk 0.41 per share in the same period last year.

ACI Limited, Shahjibazar Power Company, BSRM Steel, Titas Gas and Premier Cement also witnessed a fall in their profits in the quarter  this fiscal year compared with that in the same period of the previous fiscal year.

EBL Securities in its daily market commentary said that the index started in upward trend but in the mid-session witnessed volatility and at the end the index slightly advanced riding on some large cap stocks namely UPGDCL, BRAC Bank and GP.

The average share prices of energy advanced by 1.0 per cent, textiles 0.4 per cent, non-bank financial institution 0.39 per cent and pharmaceutical 0.2 per cent.

Cement, food and bank dropped by 0.6 per cent, 0.3 per cent and 0.2 per cent respectively.

Turnover on the bourse increased to Tk 409.61 crore on Monday from Tk 363.68 crore in the previous day.

Out of the 350 scrips traded on the day, 135 declined, 156 advanced and 50 remained unchanged.

The DSE blue-chip index, DS30, added 0.59 per cent, or 9.78 points, to close at 1,652.15 points.

Shariah index DSES gained 0.09 per cent, or 1.02 points, to end at 1,084.71 points.

National Tubes led the turnover chart with its shares worth Tk 17.43 crore changing hands on the day.

Wata Chemical, Asia Insurance, Sonar Bangla Insurance, Dutch-Bangla Bank, Stylecraft, National Polymer, Fortune Shoes, Monno Ceramics and Square Pharmaceuticals were the other turnover leaders.

BD Autocars gained the most on the day with a 9.94-per cent increase in its share prices while Kohinoor Chemicals Company performed the worst, losing 15.45 per cent.

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