Dhaka stocks add 12 points in 3 days amid choppy trading

Staff Correspondent | Published: 00:00, Nov 20,2019

 
 

Dhaka stocks ended flat on Tuesday, gaining 12 points in last three trading sessions as a section of investors kept buying undervalued stocks while many others remained cautious on the trading floor.

DSEX, the key index of Dhaka Stock Exchange, inched up by 0.01 per cent, or 0.35 points, to close at 4,722.37 points on Tuesday.

Trading at the market was slow and choppy throughout the session as investors were unsettled on the trading floor, market operators said.

Some investors continued with bargain hunting after share prices of most of the companies declined to the lowest level in the recent plunge, they said.

Share prices of Grameenphone surged by 3.8 per cent as investors expected that prolonged tussle of the mobile operator with the Bangladesh Telecommunication Regulatory Commission over audit claim might be settled soon. The GP surge contributed most to keeping the index afloat, market operators said.

They said that some institutional investors were injecting funds to revive the market sentiment, but the retail investors remained sceptical.

The general investors have lost their trust in the market regulators for their failure in developing the market, they said.

They said the unusual movement at the market gave a notion to the investors that the market was not under the regulators’ control.

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

Unusual disclosures by a number of companies about their financial health also raised question about authenticity, market operators said.

Nine new companies were sent to the ‘Z’ category, which groups low-profile scrips, as they did not give dividend to their shareholders for the year ending on June 30 this year but the companies used to giving dividends every year.

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

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.

Profits of a number of prominent companies including GPH Isphat, Bashundhara Paper Mills, ACI Limited, Shahjibazar Power Company, BSRM Steel, Titas Gas and Premier Cement dropped in this period.

EBL Securities in its daily market commentary said that major sectors displayed a mix trend while, GP, a large cap stock, recorded gain that supported the market to remain afloat.

The average share prices of telecommunication sector advanced by 3.7 per cent, pharmaceutical by 0.3 per cent, bank by 0.2 per cent and non-bank financial institution by 0.19 per cent.

Food, energy and textile sectors dropped by 0.6 per cent, 0.58 per cent and 0.3 per cent respectively.

Turnover on the bourse declined to Tk 380.83 crore on Tuesday from Tk 409.61 crore in the previous day.

Out of the 350 scrips traded on the day, 174 declined, 124 advanced and 36 remained unchanged.

The DSE blue-chip index, DS30, added 0.54 per cent, or 9.07 points, to close at 1,661.22 points.

Shariah index DSES gained 0.15 per cent, or 1.66 points, to end at 1,086.38 points.

Grameenphone led the turnover chart with its shares worth Tk 24.11 crore changing hands on the day.

National Tubes, Standard Ceramics, Sonar Bangla Insurance, Stylecraft, Monno Jute Stafflers, Bangladesh Submarine Cable Company, Nitol Insurance Company, BRAC Bank and Active Fin Chemicals were the other turnover leaders.

Beacon Pharmaceuticals gained the most on the day with a 9.82-per cent increase in its share prices while Pacific Denims performed the worst, losing 15.12 per cent.

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