Stocks end 3-week losses on bargain hunting

Dhaka stocks in the past week finished flat after losing in the previous three weeks as some investors, especially the institutional ones went for bargain hunting share buying in the last two days, while many others remained cautious on rising political tension.
DSEX, the key index of Dhaka Stock Exchange, added 0.01 per cent, or 0.64 points, to close at 5,259.11 points on Thursday, the last trading session of the week after losing 176 points in the previous three consecutive weeks.
The market was negative in the first three sessions but turn upward in the last two sessions as investors opted to inject fresh investment by lucrative price levels for rebalancing their portfolio, said EBL Securities in its weekly market commentary.
The rising political activities including meetings, rallies, dialogues and political fracas surrounding the national polls had continued weighed on the market from the first day of the week that forced DSE board and its brokers to hold meeting on Tuesday and Wednesday.
The DSE board also met with the commissioners of Bangladesh Securities and Exchange Commission on Tuesday to discuss about the downfall.
After that the institutional investors, especially the state run Investment Corporation of Bangladesh came forward to revive bearish sentiment of the market.
They said that ICB began investing its Tk 2,000 crore of bonds’ proceeds in the market that helped the market from Wednesday that helped the market to keep afloat.
Moreover, the DSE members also started their investment of their share sales proceeds of Tk 947 crore in the market to improve the market sentiment.
The DSE on Wednesday suspended share trading of Khulna Power Company to holdup an initiative of selling 1.80 crore shares by a sponsor of the company as the bourse anticipated that the initiative was one of the reasons of first three days index fall of the week.
The official of the bourse said that the suspension helped the market to rebound in the last two days of the week.
Average share prices of textile, engineering and pharmaceuticals advanced 6.1 per cent, 0.8 per cent and 0.7 per cent respectively.
On the other hand, the core index fell in most of the sessions of the week as investors were concerned about the political uncertainty ahead of national polls.
Chief election commissioner KM Nurul Huda on Thursday evening announced the schedule for the 11th parliamentary elections fixing December 23 as the polling day.
Besides, profits of most of the banks declined in January- September period that instigated investors to sale shares of the sector.
Average share prices of energy, bank, non-bank financial institutions and telecommunication dropped by 4.2 per cent, 1.1 per cent, 1.0 per cent and 0.7 per cent respectively.
The daily average turnover on the bourse, increased by 7.63 per cent to Tk 519.15 crore in the last week from Tk 482.33 crore in the previous week.
Out of the 346 traded issues, 162 declined, 159 advanced and 23 remained unchanged.
DS30, the blue-chip index of DSE, however, shed 0.34 per cent, or 6.26 points, over the week to close at 1,859.10 points.
Shariah index DSES also dipped 0.46 per cent, or 5.59 points, to close at 1,210.46 points.
Despite remaining suspended in the last two days of the week, KPCL led the turnover chart with its shares worth Tk 128.79 crore changing hands.
SK Trims & Industries, VFS Thread Dyeing, Intech Limited, BBS Cables, Nurani Dyeing, United Power Generation Company, Intraco Refueling Station, Saiham Cotton Mills and Dragon Sweater were the other turnover leaders.
Saiham Textile Mills gained the most in the week with a 32.78-per cent increase in its share prices, while Stylecraft was the worst loser, shedding 73.82 per cent.
Source: http://www.newagebd.net

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