Stocks take a breather on regulator’s moves

Staff Correspondent | Published: 00:00, May 01,2019


Dhaka stocks gained on Tuesday, ending a two-day plunge as a section of institutional investors went for buying shares after regulator Bangladesh Securities and Exchange Commission in the previous day made a set of decisions to restore order in the country’s stock market that has remained volatile for months.
The key index of Dhaka Stock Exchange, DSEX, advanced by 0.52 per cent, or 27.38 points, to close at 5,202.85 points on Tuesday after losing 91 points in the previous two sessions.
The market began to rise from the very beginning on the day but later moved downward before a sharp rise in the final half-an-hour of the session as some institutional investors went for buying shares following their meeting with the market regulator on Monday, market operators said.
On Monday, BSEC made a number decisions including rectification of capital raising through initial public offering process and ensuring shares lock-in for sponsor-directors and placement shareholders.
Market operators said that some investors thought that if implemented, the decisions might check irregularities to some extent.
Some investors went for bottom fishing, while the others stayed on the sidelines, they said.
They said investors did not dare to make any fresh move as the relentless fall in share prices at the market eroded their trust and confidence.
On top of that, finance minister AHM Mustafa Kamal who was expected to bring back confidence of the investors made uncalled-for remarks one after another causing the situation more volatile.
On Sunday, he said that the government had no control over the stock market now that eventually marginalised the investors’ hope.
Investors lost their trust in the regulator as it continuously failed to bring discipline by preventing manipulations with a firm hand.
The continuous fall shed 750 points in last four months.
‘Investors showed optimism as the regulator came up with a set of decisions to stop the fall in share prices. The participation also increased with the declaration of earnings and dividends by different companies,’ said EBL Securities in its daily market commentary.
The average share prices of energy sector advanced by 1.5 per cent, textile by 0.8 per cent, bank by 0.4 per cent and pharmaceutical by 0.1 per cent.
Of the 345 issues traded at DSE on Tuesday, 194 advanced, 106 declined and 47 remained unchanged.
The turnover on the bourse increased to Tk 415.17 crore on Tuesday from that of Tk 298.61 crore in the previous trading session.
DSE blue-chip index DS30 gained 0.59 per cent, or 10.92 points, to close at 1,846.67 points.
Shariah index DSES added 0.52 per cent, or 6.32 points, to finish at 1,205.14 points.
National Polymer led the chart of turnover leaders with its shares worth Tk 16.61 crore changing hands on the day.
BRAC Bank, Generation Next, Monno Ceramic Industries, Fortune Industries, Advent Pharmaceutical, Esquire Knit Composite, Beximco Pharmaceuticals and National Tubes were the other turnover leaders.
National Feed Mill gained the most on the day with a 9.87-per cent increase in its share prices while Generation Next Fashions was the worst loser, shedding 8.92 per cent.

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