Stocks gain on institutional support after 2-day plunge

Staff Correspondent | Published: 00:00, Apr 26,2019 | Updated: 22:28, Apr 25,2019


Dhaka stocks gained on Thursday after a two-day fall as some institutional investors including state-run Investment Corporation of Bangladesh increased their share purchase to revive the market from the recent free fall.
The key index of Dhaka Stock Exchange, DSEX, advanced by 0.49 per cent, or 25.81 points, to close at 5,266.17 points on Thursday after losing 83 points in the previous two sessions.
The market started gaining from the very beginning of the day and finished the session in the positive territory as some institutional investors including ICB continued buying shares to prop up the market, market operators said.
They said that the regulators had been trying to revive the investors’ confidence as the market was continuously sinking, sapping investors’ trust over the market.
The situation became worse after finance minister AHM Mustafa Kamal on Monday commented that he found no problem at the capital market despite the record 12-week slump in stock prices at DSE, market operators said.
They said his (minister) remarks dipped the market in the previous two sessions, making it hard for the regulator to resuscitate the market.
Besides, some investors might went for bargain hunting as share prices of most of the companies came down to the bottom, they said.
Average share prices of textile, non-bank financial institution, bank and pharmaceutical sectors dropped by 1.17 per cent, 1.02 per cent, 0.93 per cent and 0.39 per cent respectively.
Despite a rise on Thursday, many retail investors continued selling their shares as they lost confidence and trust in the regulators for their failure to keep the market stable, market operators said.
On Thursday, investors again took to the streets protesting at the prolonged downward trend at the market, in front of DSE building at Motijheel in Dhaka. They announced a token hunger strike for April 29.
Share prices of energy and telecommunication plunged by 1.38 per cent and 0.89 per cent respectively.
Share prices of United Power Generation & Distribution Company Limited plummeted by 2.14 per cent for the second day as Bangladesh Securities and Exchange Commission rejected its application for considering a share purchase agreement between the company and a foreign company regarding sales of shares of UPGDCL held by United Mymensingh Power Limited.
Of the 345 issues traded at DSE on Thursday, 202 advanced, 102 declined and 40 remained unchanged.
The turnover on the bourse increased to Tk 382.97 crore on Thursday from that of Tk 332.84 crore in the previous trading session.
DSE blue-chip index DS30, however, declined by 0.22 per cent, or 4.19 points, to close at 1,863.94 points.
Shariah index DSES added 0.30 per cent, or 3.72 points, to finish at 1,214.87 points.
Fortune Shoes led the chart of turnover leaders with its shares worth Tk 22.75 crore changing hands on the day.
Monno Ceramic Industries, National Tubes, Bangladesh Submarine Cable Company, BRAC Bank, Fine Foods, United Power Generation Company, Active Fine Chemical, Shurwid Industries and Jamuna Bank were the other turnover leaders.
Aziz Pipes gained the most on the day with a 9.97-per cent increase in its share prices while Agrani Insurance Company was the worst loser, shedding 9.09 per cent.

Want stories like this in your inbox?

Sign up to exclusive daily email