Dhaka stocks recover some lost ground for 2nd day

Staff Correspondent | Published: 00:00, Jan 17,2020

 
 

Dhaka stocks soared on Thursday after a gain in the previous day as a section of institutional investors kept buying shares, especially those of large capitalised companies including Square Pharmaceuticals and Grameenphone to revive the market.

DSEX, the key index of the Dhaka Stock Exchange, gained 2.00 per cent, or 81.62 points, to close at 4,149.82 points on Thursday after advancing by 31.96 points in the previous session.

Before the two-day gain, the DSEX lost 176.2 points in two sessions.

The market started on a positive note on Thursday and moved upward sharply as the session progressed due to institutional buying, market operators said.

They said investors gave a pause to their panic selling amid some activities from the government and the Bangladesh Bank over market stabilisation.

A couple of members of parliament on Wednesday criticised the government over the plunge on the stock market saying that the market seriously lacked a system of governance.

Investors expected discussions over the capital market at different levels might provoke the government to take immediate measures to recoup the market, market operators said.

BB governor Fazle Kabir on Tuesday said that the central bank would extend whatever support it needed to stabilise the stock market.

Finance ministry senior secretary Ashadul Islam at a meeting with the Bangladesh Merchant Bankers Association on the same day said that the ministry had asked four state-run banks to invest in the capital market to increase fund flow.

The market has been in the doldrums for the last 11 months and on Tuesday the DSEX hit a 56-month low amid lack of confidence caused from the government’s apathy towards the market.

A section of investors refrained themselves from selling shares on Thursday after they saw a sharp rise for the second day on the market.

Share prices of Square Pharmaceuticals soared by 6.9 per cent on Thursday after two of its directors announced to buy 6 lakh shares together from the public market.

Besides, Grameenphone, BRAC Bank and British American Tobacco advanced on the day that helped the market end with a substantial gain.

But, share prices of many small and medium capitalised companies declined heavily on the day.

Though the market ended bullish, the investors’ participation was very poor as investors remained cautious.

The turnover on the DSE increased slightly to Tk 267.49 crore on Thursday from Tk 242.82 crore in the previous trading session.

The latest government’s move to enact a law allowing the government to take Tk 30,000 crore of surplus money of the state-owned enterprises for development made investors nervous as they feared that the move would affect the capital market.

The recent rout that eroded 1,800 points and DSE market capitalisation by more than Tk 1.04 lakh crore in last 11 months haunted many investors.

Trading of a non-convertible and fully redeemable coupon bearing bond of Ashuganj Power Station Company Limited commenced on the DSE on Thursday.

DSE blue-chip index DS30 advanced by 2.57 per cent, or 35.36 points, to close at 1,406.59 points.

Out of the 351

scrips traded on Thursday, 194 advanced, 112 declined and 47 remained unchanged.

The average share prices of non-bank financial institution sector advanced by 1.8 per cent, bank 1.1 per cent and textile 1.0 per cent.

The share prices of telecommunication and energy sectors dropped by 1.2 per cent and 0.5 per cent respectively.

Shariah index DSES added 2.84 per cent, or 26.03 points, to end at 940.29 points.

Square Pharmaceuticals led the turnover chart with its shares worth Tk 21.32 crore changing hands on the day.

LafargeHolcim Bangladesh, ADN Telecommunication, Sea Pearl Hotel and Resort, BRAC Bank, Grameenphone, Ring Shine Textiles, Beacon Pharmaceuticals, Khulna Power Company and Standard Ceramics were the other turnover leaders.

Anlima Yarn Dyeing gained the most on the day with a 9.7-per cent increase in its share prices while SS Steel performed the worst, losing 9.60 per cent.

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