Dhaka stocks return to gaining track

Staff Correspondent | Published: 00:00, Jan 23,2020

 
 

Dhaka stocks gained on Wednesday after profit taking in the previous day as investors went for buying shares on an expectation that the market would improve riding on the back of various market stabilising initiatives from the government and Bangladesh Bank.

DSEX, the key index of the Dhaka Stock Exchange, added 0.73 per cent, or 32.18 points, to close at 4,440.29 points on Wednesday after losing 26.13 points in the previous day. The DSEX gained 402 points in the last six sessions with a negative day.

The core index began to gain from the beginning of Wednesday’s session and maintained the momentum until the end of the session as investors resumed share buying after profit booking in the previous session, market operators said.

They said that a section of investors expected that the market situation would improve due to a number of initiatives from the government, the central bank and market intermediaries to stabilise the market turmoil.

A meeting of policymakers in presence of prime minister Sheikh Hasina at her office in Dhaka on January 16 made a six-point proposals, emphasising an increase in fund flow to the market.

The meeting proposed that the government should create mechanisms for ensuring increased participation of banks and non-bank financial institutions, expand capacity of Investment Corporation of Bangladesh and provide funds to market intermediaries.

The market responded to the proposals and other initiatives positively as the DSEX jumped by 285 points in the first two trading sessions in this week.

Bangladesh Bank governor Fazle Kabir on a couple of occasions said that the central bank would extend whatever support it needed to stabilise the stock market.

The BB is also working on the proposal of Tk 10,000 crore funds for the market intermediaries to remove the current liquidity shortage on the market.

Top brasses of four state-run banks at a meeting held on January 16 agreed to increase investment on the capital market following the government directions to do so.

The market stabilising moves came following 12 months of relentless fall in the share prices that caused the DSEX to fall to a 56-month low on January 14.

The average share prices of non-bank financial institution sector increased by 5 per cent, textile 1.4 per cent, energy 1.3 per cent and bank 0.01 per cent.

The share prices of Grameenphone dropped by 0.66 per cent on Wednesday.

The turnover on the DSE also increased to Tk 438.42 crore on Wednesday from Tk 406.80 crore in the previous trading session.

EBL Securities in its daily market commentary said bargain hunters showed appetite for sector-specific issues that gave the index a gradual rising movement that continued till the closure of the session.

Out of the 356 scrips traded on Wednesday, 183 advanced, 126 declined and 47 remained unchanged.

DSE blue-chip index DS30 increased by 0.84 per cent, or 12.70 points, to close at 1,519.84 points.

Shariah index DSES added 1.08 per cent, or 10.98 points, to end at 1,018.62 points.

LafargeHolcim Bangladesh led the turnover chart with its shares worth Tk 37.71 crore changing hands on the day.

Khulna Power Company, Square Pharmaceuticals, Paramount Textiles, Shurwid Industries, Quashem Industries, SK Trims, SS Steel, ADN Telecom and Pioneer Insurance were the other turnover leaders.

SEML IBBL Shariah Fund gained the most on the day with a 10-per cent increase in its share prices while Northern Jute Manufacturing Company performed the worst, losing 8.58 per cent.

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