Stocks finish flat despite quickfire start amid SK Trims debut hype

Staff Correspondent | Updated at 11:26am on July 12, 2018


DSE building. - New Age file photo

Dhaka stocks on Wednesday ended almost flat despite a quickfire start as investors went for selling shares in late hours after the Dhaka Stock Exchange announced that SK Trims Industries would make its debut on the bourse on July 15.
DSEX, the key index of the DSE, added 0.14 per cent, or 7.94 points, to close at 5,379.24 points after gaining 30 points in the previous trading session.
Investors’ frenzy over any newly listed compnay has been very high in recent years and so investors on Wednesday went for selling shares to free up funds following the DSE annoucement over SK Trims, market operators said.
They said the share prices of newly listed companies skyrocketed that attracted investors to the scrips to make quick gains.
For example, the share prices of Bashundhara Paper Mills that made its debut on the stock exchanges on July 2 soared by 73 per cent to Tk 130 each.
Market operators said the market opened with upbeat momentum, gaining 102 points within an hour of the session, as investors injected fresh funds in line with the previous few trading sessions.
The share prices of the financial sectors including banks gained heavily in the beginning after slump in the previous few sessions amid investors’ concern over their financial health, market operators said.
Market experts said that the unusual movement in the share prices of newly listed companies had become a trend and a ‘gambling matter’.
A group of investors usually purchase shares of the debutant companies intentionally to create hype and to lure general investors to get quick returns, they said.
On Wednesday, the share prices of Grameenphone advanced by 0.65 per cent as the company would declare its second quarter earnings results on July 15.
‘Investors displayed optimism as the market remained positive as June-ending companies prompted them (investors)
to take position in stocks for reorganising their portfolios,’ said EBL Securities in its daily market commentary.
The average share prices of non-bank financial institutions, bank and telecommunication advanced by 1.4 per cent, 1.3 per cent and 0.3 per cent respectively.
On the other hand, the share prices of food, pharmaceuticals and cement dropped by 0.8 per cent, 0.2 per cent and 0.2 per cent respectively.
Turnover on the bourse increased to Tk 1,115.29 crore compared with that of Tk 1,088.19 crore in the previous trading session, hitting a eight-month high.
Wednesday’s turnover was the highest after Tk 1,158.46 crore in November 20, 2017.
Of the 339 companies and mutual funds traded, 153 advanced, 157 declined and 31 remained unchanged.
DS30, the blue-chip index of the bourse, also gained 0.18 per cent, or 3.48 points, to close at 1,915.34 points.
Shariah index DSES, however, lost 0.14 per cent, or 7.94 points, to finish at 1,266.99 points.
Bashundhara Paper Mills led the turnover chart with its shares worth Tk 39.98 crore changing hands.
Ratanpur Steel Re-Rolling Mills, Peninsula Chittagong, BBS Cables, Bangladesh Export Import Company, Legacy Footwear, United Power Generation and Distribution Company, Miracle Industries, Confidence Cement and BRAC Bank were the other turnover leaders.
Queen South Textile Mills gained the most on the day with a 9.96-per cent increase in its share prices, while Aziz Pipes was the worst loser, shedding 8.43 per cent.