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Stocks inch up after 2-day plunge

Staff Correspondent | Published: 02:02, Dec 05,2019

 
 

Dhaka stocks gained slightly on Wednesday after plunges in the previous two sessions as some investors went for bargain hunting while the others remained cautious.

DSEX, the key index of Dhaka Stock Exchange, added 0.11 per cent, or 5.63 points, to close at 4,702.98 points on Wednesday after losing 62 points in the previous two sessions.

The market surged at the beginning on Wednesday but the vibe did not sustain for long as it moved downwards to end the session with slight gains, market operators said.

They said that some institutional investors bought shares after the prices of most of the scrips dipped significantly in the recent rout at the market.

The DSEX lost more than 1,200 points in last 10 months.

The investors took the bearishness as an opportunity to maximise their profit margins, they said.

The average share prices of textile sector advanced by 1.7 per cent, bank 0.29 per cent and pharmaceutical 0.3 per cent on Wednesday.

Market operators said many investors remained concerned over the economy and financial sector of the country.

Continued fall in the private sector credit growth, negative export earnings for last four months, poor tax revenue collection reflected a gloomy state of the country’s economy.

The government’s failure to rein in the surge of non-performing loans in banks also dampened the investors’ mood.

Concerns over the country’s economy also prompted foreign investors to continue withdrawing funds for last nine months. The net foreign investment at the DSE dipped to Tk 99 crore negative in November after Tk 96.92 crore negative in October.

Despite closure of business operations, share prices of Miracle Industries soared by 4.56 per cent on Wednesday after a surge in the previous day.

EBL Securities in its daily market commentary said that a section of investors bagged profits while the others were busy in rebalancing their portfolios on Wednesday.

Turnover on the DSE increased to Tk 462.06 crore on Wednesday from Tk 412.37 crore in the previous day.

Out of the 343 scrips traded on Wednesday, 134 declined, 167 advanced and 51 remained unchanged.

DSE blue-chip index DS30 gained 0.02 per cent, or 0.38 points, to close at 1,617.62 points.

Shariah index DSES added 0.06 per cent, or 0.7 points, to end at 1,061.40 points.

Sonar Bangla Insurance led the turnover chart with its shares worth Tk 19.63 crore changing hands on the day.

Sino Bangla, SK Trims Industries, Paramount Textiles, LafargeHolcim Bangladesh,  Doreen Power, Bangladesh National Insurance Company, Northern Insurance, United Finance and Saiham Cotton were the other turnover leaders.

New Line Clothings gained the most on the day with a 9.93-per cent increase in its share prices while ACI Limited performed the worst, losing 17.79 per cent.

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