Dhaka stocks edge up after five-day fall

Staff Correspondent | Published at 12:17am on January 12, 2018

Dhaka stocks inched up on Thursday, snapping a five-day losing spell, despite a fall in the share prices of most of the traded scrips as a number of large capitalised issues surged amid bargain hunting by a section of investors.
Although the market finished slightly up, the dullness at the market continued worsening as the turnover at the Dhaka Stock Exchange dropped for seven consecutive sessions.
DSEX, the key index of the DSE, gained 0.11 per cent, or 6.87 points, to close at 6,179.32 points after losing 145.80 points in the previous five sessions.
The market went through a choppy trading session as it opened slightly up, but soon after it moved downward, losing around 22 points at one point of the session when investors continued to sell off their shares, market operators said.
The market, however, ended up on positive note amid bargain hunting by a section of investors, they said.
A 0.98-per cent rise in the share prices of Grameenphone contributed most to the rebound at the market.
Square Pharmaceuticals, Marico Bangladesh, Desco and Shahjibazar Power also surged on the day.
Riding on the bargain hunting moves by investors, the average share prices of cement and bank rebounded by 1.1 per cent and 0.1 per cent that helped the market gain on Thursday, the last trading session of the week.
Pharmaceuticals, telecommunication and food also witnessed a positive day, they said.
On the other hand, the prolonged dullness at the market that started from the beginning of this year made the investors cautious on the trading floor and also prompted them to take out their investment from the market to avoid any unexpected losses, stockbrokers said.
The turnover at the DSE declined to Tk 381.51 crore on Thursday from that of Tk 439.30 crore in the previous session as many investors preferred to be on the sidelines to watch the next move of the market, they said.
A fresh move of Bangladesh Bank to force banks to lower their advanced deposit ratio that may reduce fund flow to the capital market continued to play a role in the current jittery movement of the market, they said.
As a result, non-bank financial institutions, energy and engineering lost 0.5 per cent, 0.4 per cent and 0.3 per cent respectively.
Shahjalal Islami Bank, British American Tobacco and Islami Bank were the worse losers on the day.
‘The core index [DSEX] witnessed selling pressure at the beginning of the session. However, revival of investors’ optimism helped the bourse to settle in the green in the last hour,’ said EBL Securities in its daily market commentary.
‘Thus, opportunity seeking investors spurred buying pressure on stocks from telecommunication, pharmaceuticals & chemicals and cement sectors,’ it said.
Of the 335 companies and mutual funds traded, 165 declined, 107 advanced, and 62 remained unchanged.
DS30, the blue-chip index of the DSE, also gained 0.29 per cent, or 6.74 points, to finish at 2,260.24 points.
Shariah index DSES added 0.25 per cent, 3.58 points, to close at 1,391.54 points.
Square Pharmaceuticals led the turnover chart on the day with its shares worth Tk 23.95 crore changing hands.
IFAD Autos, Paramount Textiles, Aamra Networks, National Tubes, BD Thai, Lafarge Surma, United Power Generation Company, City Bank and Islami Bank were the other turnover leaders.
Bangladesh Autocars increased most with a 6.70-per cent rise in its share prices, while Alif Industries was the worst loser, shedding 4.72 per cent.