Dhaka stocks rebound on bargain hunting after 2 bruising sessions

Staff Correspondent | Updated at 11:03pm on January 16, 2018

Dhaka stocks on Tuesday rebounded strongly after a plunge in the previous two sessions as a section of investors went on bargain hunting share purchasing from the current sluggish market.
DSEX, the key index of Dhaka Stock Exchange, advanced 1.17 per cent, or 70.95 points, to close at 6,128.80 points on Tuesday after losing 121 points in the previous two sessions.
Although the market opened with negative note, it began to move upward that continued until the end of the session as a section of investors went for bargain hunting share purchasing from the whole market, market operators said.
They said that almost all the scrips declined in the recent nosedive of the market that prompted a section of investors to invest.
Besides, a section of investors also went for investment expecting better earnings and dividend disclosures for the last year that resulted in gain in share prices of two-third scrips, they said.
Furthermore, the regulatory body of the market might have intervened in the market so that the institutional investors became active amid the jittery over the upcoming monetary policy of Bangladesh Bank.
The market witnessed heavy selling before Tuesday because of the reported BB move to cut the banks’ advanced deposit ratio that may decline the fund flow in the capital market, stockbrokers said.
There is apprehension among investors that the Bangladesh Bank may tighten its upcoming monetary policy to control money flow in the financial sector.
DSE Brokers Association and Bangladesh Merchant Bankers Association held an emergency meeting on Tuesday to find a way of addressing the current sluggishness in the market.
As a result, all the sectors except the miscellaneous advanced on the day.
Financial sectors led the vibe from front as bank and non-bank financial sectors gained by 1.9 per cent and 1.5 per cent respectively.
Out of the 30 traded bank scrips, 26 declined, just two advanced and two remained unchanged while out of the 23 NBFI issues, 18 declined, just one advanced and four remained unchanged.
Besides, energy, telecommunication and pharmaceuticals gained by 1.4 per cent, 1.3 per cent and 0.8 per cent respectively.
Share prices of Investment Corporation of Bangladesh, Grameenphone, Square Pharmaceuticals, BRAC Bank and Pubali Bank surged on the day that contributed most to rebound the market.
As a result, the turnover at the bourse, declined to Tk 388.70 crore on Tuesday from that of Tk 406.14 crore in the previous session.
‘Market started with flying note and continued throughout the day driven by hopes and excitement ahead of earnings declaration,’ said EBL Securities in its daily market commentary.
Of the 334 companies and mutual funds traded, 241 advanced and 50 declined, and 43 remained unchanged.
DS30, the blue-chip index of the DSE, also gained 0.99 per cent, or 22.21 points, to finish at 2,247.07 points.
Shariah index DSES added 0.98 per cent, 13.51 points, to close at 1,389.91 points.
Dragon Sweater led the turnover chart on the day with its shares worth Tk 21.69 crore changing hands.
Square Pharmaceuticals, City Bank, National Bank, Shahjalal Islami Bank, BD Thai, IFAD Autos, United Power Generation Company, Grameenphone and National Tubes were the other turnover leaders.
Dragon Sweater increased most with a 9.85-per cent rise in its share prices, while Central Insurance was the worst loser, shedding 2.94 per cent.