Stocks gain on bargain hunting in late hour

Staff Correspondent | Updated at 11:13pm on August 14, 2018

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Dhaka stocks rebounded on Tuesday as bargain hunters were out in force in late trading after sluggish early hours on the day and a fall in the previous day amid investors’ Eid-centric share sales.
Eid-ul-Azha, one of the largest religious festivals of Muslims, will be celebrated across the country on August 22. Trading at the Dhaka Stock Exchange will remain closed from August 21 to 25 for Eid holidays and weekly holidays.
DSEX, the key index of the DSE, advanced by 0.55 per cent, or 29.72 points, to close at 5,408.45 points on Tuesday after losing 28.45 points in the previous trading session.
The market was slow and choppy from the beginning of the day and remained sluggish during most of the time of the session, market operators said.
The market, however, finished with a notable gain due to investors’ significant share buying in late hours, they said.
Market operators said investors went for bargain hunting share purchasing after a decline in the previous session.
The share prices of Grameenphone gained for the second session on Tuesday (by 2.76 per cent) after a heavy fall in a couple of days before Monday while Square Pharmaceuticals and Olympic Industries rebounded strongly by 3.15 per cent and 2.37 per cent respectively after falling heavily in the previous three consecutive sessions.
The average share prices of telecommunication, energy, pharmaceuticals and non-bank financial institutions advanced by 2.3 per cent, 1.7 per cent, 1.3 per cent and 0.2 per cent respectively.
Turnover on the DSE dropped further to Tk 580.19 crore on Tuesday compared with that of Tk 818.39 crore in the previous trading session.
Market operators said a section of investors began to cash their investments
in stocks to meet the Eid-centric expenses.
They said a section of investors were also worried as most of the banks yet to bring down the lending rate to single digit. Finance minister AMA Muhith had announced August 9 as the fresh deadline for implementation of the rate cut decision after the banks had failed to do so by the previous deadline — July 1.
Therefore, the average share prices of the bank sector dropped for another session by 0.4 per cent.
‘The market opened on positive note and mid-session saw some volatility. Last hour buying binge gave the index some elevation,’ said EBL Securities in its daily commentary.
Of the 337 companies and mutual funds traded, 130 declined, 158 advanced, and 47 remained unchanged.
DS30, the blue-chip index of the DSE, advanced by 0.87 per cent, or 16.47 points, to close at 1,901.42 points.
Shariah index DSES also added 1.17 per cent, or 14.43 points, to finish at 1,242.57 points.
BBS Cables led the turnover chart with its shares worth Tk 27.52 crore changing hands.
IFAD Autos, Hamid Fabrics, Shepherd Industries, Active Fine Chemicals, United Power Generation Company, Dragon Sweater, KDS Accessories, Bashundhara Paper Mills and Saiham Textile Mills were the other turnover leaders.
Provati Insurance gained the most on the day with a 9.80-per cent increase in its share prices, while Padma Life Insurance was the worst loser, shedding 16.42 per cent.