Banks keep stocks afloat for 4th day

Staff Correspondent | Updated at 11:47pm on August 12, 2018

Dhaka stocks finished flat on Sunday despite a fall in the share prices of two-thirds of the traded scrips as investors continued to buy bank shares, diverting their investments from other stocks.
DSEX, the key index of Dhaka Stock Exchange, added 0.003 per cent, or 0.18 points, to close at 5,407.18 points on Sunday.
The core index had gained 58 points in last four trading sessions.
The market went through a seesaw session that finished with a slight gain as investors kept buying bank stocks while the share prices of all the other sectors dipped on their profit-taking moves.
Investors chose the bank sector as safe haven for investment after the premier bourse on August 7 initiated to take harsh measures against 15 more junk companies that have not been providing dividends for more than five years amid an irrational rise in the share prices of low-profile companies, market operators said.
Besides, the bank stocks had witnessed a significant fall in their share prices since the beginning of the year that also prompted a section of investors to purchase those at comparatively lower prices, they said.
A section of investors also rushed to buy bank shares selling off Grameenphone shares after the media reported on August 9 that the Bangladesh Telecommunication Regulatory Commission would ask Grameenphone to pay the government Tk 11,530 crore in dues as an audit found the company did not pay the amount over the years.
The sell-offs dragged down the share prices of the mobile operator by 2.70 per cent for the second day on Sunday.
For the investors’ increased attention to the bank sector, the sector advanced by 2.9 per cent, which was enough to keep the market positive despite a decline in the share prices of all the other sectors.
The average share prices of telecommunication, pharmaceuticals and energy sectors dropped by 2.7 per cent, 1.21 per cent and 1.2 per cent respectively.
‘The capital bourse of the country exhibited a roller coaster ride as investors preferred to take some profits ahead of Eid-ul-Azha holidays. The market displayed slow movement amid investors’ profit-booking tendency but finally managed to slid into green zone marginally by the end of the session, which was mainly triggered by investors’ expectation towards the bank sector,’ said EBL Securities in its daily commentary.
Turnover on the DSE increased to Tk 818.39 crore on Sunday compared with that of Tk 703.93 crore in the previous trading session.
Of the 337 companies and mutual funds traded, 209 declined, 95 advanced and 33 remained unchanged.
DS30, the blue-chip index of the DSE, however, lost 0.03 per cent, or 0.63 points, to close at 1,892.70 points.
Shariah index DSES also shed 0.79 per cent, or 9.88 points, to finish at 1,235.97 points.
BBS Cables led the turnover chart with its shares worth Tk 36.75 crore changing hands.
Saiham Textile Mills, Shepherd Industries, IFAD Autos, Simtex Industries, Paramount Textile, Regent Textile, Legacy Footwear, Aman Cotton Fibrous and Hamid Fabrics were the other turnover leaders.
Shepherd Industries gained the most on the day with a 9.97-per cent increase in its share prices, while Savar Refractories was the worst loser, shedding 9.87 per cent.