Dhaka stocks advance on ADR adjustment time extension by central bank

Staff Correspondent | Published: 00:00, Mar 11,2019 | Updated: 23:10, Mar 10,2019

 
 

Stocks increased for the second day on Sunday as a section of investors, encouraged by allowing banks more time for adjusting ADR, went for buying shares while many others remained cautious due to liquidity shortage in the financial sector, market operators said.
DSEX, the key index of Dhaka Stock Exchange, gained 0.37 per cent, or 21.60 points, to close at 5,710.06 points on Sunday after adding 2.07 points in the previous session.
Market operators said the market began bullish, gaining 43 points within 20 minutes of the day, as some investors went for buying shares.
On March 7, Bangladesh Bank extended the deadline by six more months for banks to adjust their advance-deposit ratio from March 31 that encouraged investors to invest in the capital market, they said.
The average share prices of engineering, energy and pharmaceutical sectors advanced by 0.87 per cent, 0.70 per cent and 0.65 per cent respectively.
British American Tobacco Company shot up by 5 per cent on Sunday as the board of the company will disclose its dividend and earnings today for the year of 2018. The rise in the heavyweight company’s share prices raised the DSEX by 18 points.
The financial sector has been going through fund crisis and the extension of ADR adjustment time would release liquidity pressure a number of banks are facing to some extent, market operators said.
They said the ADR adjustment pressure was one of the many reasons for the fund crisis in the financial market.
Banks has been struggling for funds as many people prefer to buy savings certificates than depositing in banks due to a significant gap in interest rates between the government’s savings tools and the bank deposit products, they said.
Therefore, the turnover on the bourse dropped to Tk 462.14 crore on Sunday from Tk 491.57 crore in the previous trading session.
Sunday’s turnover was the lowest after December 26, 2018 when it was Tk 388.24 crore.
‘The turnover in the market started climbing at early hours of trading and it remained positive throughout the session. However, most of the investors remained watchful and that resulted in a two-and-a-half-month low turnover,’ said EBL Securities in its daily market commentary.
The average share prices of bank, life insurance and telecommunication dropped by 0.63 per cent, 0.31 per cent and 0.15 per cent respectively.
Among the prominent scrips, share prices of Dutch-Bangla Bank, LankaBangla Finance and Grameenphone declined most on the day.
Out of the 345 issues traded on the day, 112 declined, 187 advanced and 48 remained unchanged.
DSE blue-chip index DS30 gained 0.55 per cent, or 11.00 points, to close at 2,001.33 points.
Shariah index DSES added 0.61 per cent, or 8.00 points, to finish at 1,311.04 points.
United Power Generation Company led the turnover leaders with its shares worth Tk 28.36 crore changing hands on the day.
Monno Ceramic Industries, Singer Bangladesh, Dutch-Bangla Bank, National Polymer, Fortune Shoes, Bangladesh Submarine Cable Company, BDCOM Online, Premier Bank and VFS Thread Dyeing were the other turnover leaders.
Takaful Islamic Insurance gained the most on the day with a 9.16-per cent increase in its share prices while Dutch-Bangla Bank was the worst loser, shedding 7.86 per cent.

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

 

Advertisement

images