Stocks rebound riding on large caps

Staff Correspondent | Published: 22:18, Feb 19,2020


Despite a fall in share prices of most of the companies, Dhaka stocks gained marginally on Wednesday as a section of investors went for buying shares especially those of large capitalised companies including Grameenphone while the others kept booking profits.

DSEX, the key index of Dhaka Stock Exchange, gained 0.37 per cent, or 17.6 points, to close at 4,758.00 points on the day after losing 27.73 points in the previous session.

Out of the 356 scrips traded on Wednesday, 180 declined, 143 advanced and 33 remained unchanged.

The index gained 373 points in the last seven sessions with just one negative day.

After a couple of ups and downs, the core index increased sharply by 35 points at one point of the day’s trading and eventually finished the session with a marginal gain as investors were active from both sides of the trading fence, market operators said.

They said that a section of investors were booking profits or moving to safer and profitable securities.

Before the rally in February, the key index plunged by over 1,900 points in 11 consecutive months, which drastically reduced the share prices of almost all the companies.

The prolonged bearishness on the market forced the government to take steps for stabilising the market, and as part of the initiative the Bangladesh Bank on February 10 issued a circular allowing each schedule bank to borrow up to Tk 200 crore from it with low interest rate to invest in the stock market.

Market operators said that the recent surge on the market with an increased participation of investors was perceived as a knee-jerk reaction to the central bank’s move.

EBL Securities in its daily market commentary said, ‘Investors were engaged in profit booking by selling off shares in early hours of Wednesday’s session while enthusiastic investors with restored confidence continued their buying and poured funds mainly in the fundamental stocks.’

Market operators said that the country’s banks also started cutting deposit rate to around 6 per cent to implement the government’s decision to bring down interest rate to single digit that might divert funds to the stock market.

Share prices of the largest capitalised company, Grameenphone, surged by 8 per cent or Tk 20 on Wednesday as prices of the company’s shares dropped significantly in recent times amid its tussle with the Bangladesh Telecommunication Regulatory Commission over an audit claim, they said.

Besides, share prices of BSRM, Padma Oil, Meghna Petroleum and United Power Generation Company advanced on the day.

The average share prices of telecommunication sector dropped by 7.3 per cent, energy by 2.9 per cent and engineering by 2.7 per cent.

The average share prices of non-bank financial institutions, bank and textile sectors dropped by 1.1 per cent, 0.9 per cent and 0.2 per cent respectively.

The turnover on the DSE dropped to Tk 837.15 crore on Wednesday from Tk 1,021.34 crore in the previous trading session.

DSE blue-chip index DS30 added 0.54 per cent, or 8.68 points, to close at 1,599.55 points.

Shariah index DSES gained 0.52 per cent, or 5.67 points, to end at 1,087.01 points.

Summit Power led the turnover chart with its shares worth Tk 30.05 crore changing hands on the day.

Orion Pharmaceuticals, LafargeHolcim Bangladesh, Khulna Power Company, SK Trims Industries, Grameenphone, National Tubes, Doreen Power, Bangladesh Export Import Company and Golden Harvest Agro Industries were the other turnover leaders.

ICB AMCL Third NRB Mutual Fund gained the most on the day with a 10-per cent increase in its share prices while United Airways performed the worst, losing 6.64 per cent.

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