Stocks inch up on bargain hunting after 4-day fall

Staff Correspondent | Published at 12:05am on September 06, 2018


A file photo shows the Dhaka Stock Exchange building in the city. Dhaka stocks gained slightly on Wednesday, snapping a four-day fall, with an increased turnover due to bargain hunting by investors.— New Age photo

Dhaka stocks gained slightly on Wednesday, snapping a four-day fall, with an increased turnover due to bargain hunting by investors.
Market operators said the news that the Chinese group of Shenzen and Shanhai stock exchanges on Tuesday officially became Dhaka Stock Exchange’s strategic partner also brightened the investors’ mood.
DSEX, the key index of the DSE, gained 0.16 per cent, or 9.43 points, to close at 5,562.23 points on Wednesday after losing 66.61 points in the previous four sessions.
The market finished the session with a slight gain as investors were active on both sides of the trading fence, market operators said.
They said that a section of investors went for bargain hunting after the market fall in the previous four sessions.
The Chinese group on Tuesday became DSE’s strategic shareholder after completion of all procedures of purchasing the bourse’s 25 per shares that encouraged investors, they said.
The turnover on the DSE advanced to Tk 811.75 crore on Wednesday compared with that of Tk 716.98 crore in the previous trading session.
Energy and textile sectors rebounded by 0.7 per cent and 0.2 per cent respectively on Wednesday after profit taking in the previous session. In recent days, both the sectors were seen as the main attraction of investors.
Besides, cement, telecommunication and pharmaceuticals also advanced by 2.2
per cent, 0.3 per cent and 0.1 per cent respectively.
On the other hand, the share prices of financial scrips continued to fall as banks and non-bank financial institutions lost 1.1 per cent and 0.9 per cent respectively on Wednesday.
A section of investors were also watching political developments ahead of the national elections due by January this year, market operators said.
‘The index started with upward vibe and remained in the green zone till the end with some volatility in the mid-session as optimism prevailed due to the news that the Chinese consortium, which bought 25 per cent stake of the DSE, formally became a strategic partner of the prime bourse as share acquisition and fund transfer process were completed,’ said EBL Securities in its daily market commentary.
Of the 335 companies and mutual funds traded, 131 declined, 156 advanced, and 49 remained unchanged.
DS30, the blue-chip index of the DSE, also added 0.27 per cent, or 5.28 points, to close at 1,955.61 points.
Shariah index DSES also increased by 0.70 per cent, or 8.96 points, to finish at 1,279.97 points.
Khulna Power Company led the turnover chart with its shares worth Tk 60.14 crore changing hands.
United Power Generation Company, Peninsula Chittagong, Unique Hotel and Resort, Aman Feed, Confidence Cement, BBS Cables, National Housing and Finance Services, IPDC Finance and Bangladesh Steel Re-Rolling Mills were the other turnover leaders.
Oimex Electrode gained the most on the day with a 9.92-per cent increase in its share prices, while SEML Lecture Equity Management Fund was the worst loser, shedding 9.21 per cent.