Dhaka stocks end 4-day plunge but unease prevails

Staff Correspondent | Published: 00:00, Apr 12,2019

 
 

Dhaka stocks ended a four-day plunge on Thursday in cautious trading as institutional investors went for bargain hunting amid regulatory intervention to ease the ongoing volatility at the market.
DSEX, the key index of Dhaka Stock Exchange, soared by 1.23 per cent, or 64.78 points, to close at 5,326.39 points on Thursday after losing 203 points in the previous four sessions.
The market began to gain from the very beginning on Thursday and rose sharply in late session buying pressure as some investors, particularly the institutional ones, went for bargain hunting, market operators said.
They said that Bangladesh Securities and Exchange Commission chairman M Khairul Hossain’s meeting with prime minister Sheikh Hasina on Wednesday over the recent market woes gave a positive signal to the market.
After observing positive momentum at the market, investors checked selling shares at low prices expecting better returns in the coming days, they said.
Besides, the institutional investors especially state-run Investment Corporation of Bangladesh went for buying shares to reinstall investors’ confidence, they said.
EBL Securities in its daily market commentary said, ‘BSEC’s planning regarding the welfare of capital market has also restored investors’ confidence.’
‘Investors were optimistic expecting that the market found its support level,’ it said.
The market lost 622 points in 11 consecutive weeks and has become a headache for the regulators.
Liquidity crisis in the country’s financial sector, hike in interest rate, poor dividend declarations by a number of companies, and Grameenphone’s tussle with the telecom regulator over Tk 12,500 crore in dues had played the key role behind the continuous fall.
Some of the affected investors took to the streets in last couple of days, protesting against the relentless fall at the market. They criticised the role of market regulator BSEC in dealing with the situation.
The average share prices of all sectors advanced on Thursday.
The telecommunication sector advanced by 2.9 per cent, textile by 2.5 per cent, non-bank financial institution by 1.7 per cent and bank by 0.6 per cent.
The share prices of Eastern Bank soared by 5.2 per cent on the day after the bank declared 30 per cent dividend (20 per cent cash and 10 per cent stock) for 2018 with a growth of profits by 28.3 per cent.
Among the large capitalised scrips, a rise in share prices of Grameenphone, ICB, Square Pharmaceuticals, United Power Generation Company, and British American Tobacco helped the market rebound on Thursday.
The turnover on the bourse increased to Tk 284.18 crore on Thursday from that of Tk 274.83 crore in the previous trading session as most of the investors remained on the sidelines.
Of the 345 issues traded at DSE on the day, 262 advanced, 45 declined and 37 remained unchanged.
DSE blue-chip index DS30 also advanced by 1.33 per cent, or 25.05 points, to close at 1,902.97 points.
Shariah index DSES added 1.26 per cent, or 15.35 points, to finish at 1,233.22 points.
Monno Ceramic Industries led the chart of turnover leaders with its shares worth Tk 19.66 crore changing hands on the day.
Fortune Shoes, United Power Generation Company, Bangladesh Submarine Cable Company, Esquire Knit Composite, Grameenphone, Reckitt Benckiser, Rupali Life Insurance, Eastern Cables and British American Tobacco Company were the other turnover leaders.
Rupali Life Insurance Company gained the most on the day with a 9.72-per cent increase in its share prices while Reckitt Benckiser was the worst loser, shedding 3.87 per cent.

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