Dhaka stocks end 13-week bear run on govt intervention

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Dhaka stocks in the past week ended a 13-week losing streak as investors went for bargain hunting purchase following the government moves to revive the market.

DSEX, the key index of Dhaka Stock Exchange, gained 0.39 per cent, or 20.57 points, over the week to close at 5,286.75 points on Thursday, the last trading session of the week after losing 684 points in the previous 13 consecutive weeks. The market was closed on May 1 to observe the labour day.

The market fell in the first two days of the week but rebounded in the last two sessions as investors went for bargain hunting share buying following the government moves to revive the market. The government high ups including prime minister Sheikh Hasina came up with assurances to boost up the morale of the investors while the market regulator also took a number of measures to halt the slides.

Hasina on Tuesday told parliament, ‘There is no reason for the investors to panic. We have been taking measures so that the capital market runs properly.’ ‘Those who will manipulate trading activities in the capital market will be brought to book,’ she said. On Tuesday, finance minister AHM Mustafa Kamal also ensured the investors that the government would solve all the problems very soon. He also assured that the government would provide incentives for the capital market in the next national budget.

BSEC on Tuesday postponed receiving any new IPO application until making necessary amendments to the rules to prevent irregularities and corruptions in the area. The commission also decided that it would no longer accept new applications from the unlisted companies for the purpose of capital raising, which would diminish the existence of any ‘placement shareholders’. 

As an immediate reaction to the measures, investors went for share purchase in the last two sessions of the week, said market operators.
Before, the week, the market has lost 665 points in 13 consecutive weeks due to the liquidity shortage, rampant share sales of placement shareholders and finance minister’s comments.

Earlier, Kamal had said that the government had no control over the stock market then and there were two groups at the country’s stock market — one was lion and the other goat — with the lion prevailing over the goat that had triggered share sales.

Average share prices of energy, textile, non-bank financial institution and pharmaceutical sectors advanced 3.0 per cent, 2.9 per cent, 1.3 per cent and 0.4 per cent respectively. ‘During the last two sessions of the week, investors showed optimism as the regulator came up with a set of decisions to stop the free fall in the share prices,’ said EBL Securities in its weekly market commentary.

On the other hand, share prices of food, telecommunication and bank dropped 2.9 per cent, 1.7 per cent and 0.6 per cent respectively.
The daily average turnover on DSE also increased to Tk 383.33 crore in last week from Tk 341.57 crore in the previous week. Out of the 350 issues traded last week, 214 declined, 110 advanced and 26 remained unchanged. DS30, the blue-chip index of DSE, added 0.36 per cent, or 6.64 points, to close at 1,870.58 points. Shariah index DSES advanced 0.83 per cent, or 10.10 points, to finish at 1,224.97 points. Fortune Shoes led the turnover chart with its shares worth Tk 58.75 crore changing hands in the week.

National Polymer Industries, Monno Ceramic Industries, United Power Generation Company, Genex Infosys, Bangladesh Submarine Cable Company, National Tubes, Esquire Knit Composite, BRAC Bank and Indo-Bangla Pharmaceuticals were the other turnover leaders.
Genex Infosys gained the most on the day with a 22.76-per cent increase in its share prices while Agrani Insurance was the worst loser, shedding 18.06 per cent.

Source: http://www.newagebd.net

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