Stocks finish flat as Eid holidays near

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Dhaka stocks finished flat on Wednesday amid cautious trading by most of the investors ahead of Eid-ul-Azha holidays while a section of investors continued buying shares of banks and non-bank financial institutions following the Bangladesh Bank’s move to ease liquidity dearth in the NBFI sector.

DSEX, the key index of the Dhaka Stock Exchange, shed 0.001 per cent, or 0.09 points, to close at 5,187.20 points on Wednesday after gaining 26.92 points in the previous session.

The market started with a positive vibe, gaining 26 points at one point of the day, but failed to continue the momentum and finished the session in the negative trajectory amid cautious trading ahead of Eid holidays, market operators said.

Trading at the DSE and the Chittagong Stock Exchange will remain closed in August 9-17 for weekly and Eid holidays.

According to media reports, Bangladesh Telecommunication Regulatory Commission may ask Grameenphone, a listed company, to explain why its licence would not be revoked for violating the licensing conditions by not paying the telecom regulator’s audit claim.

Therefore, the share prices of GP plunged by 0.87 per cent on the day.

The average share prices of textile, engineering and telecommunication dropped by 1.70 per cent, 1.52 per cent and 1.05 per cent respectively.

The average share prices of bank and NBFI advanced by 1.25 per cent and 0.74 per cent respectively following the BB move taken on Monday to enhance borrowing capacity of NBFIs from the call money market.

The BB made the decision as the country’s banking sector has been facing severe criticism in recent months over soaring non-performing loans while a number of NBFIs are facing severe liquidity shortage.

Investors hoped that following the BB move, NBFIs’ liquidity shortage would ease, said market operators.

Meanwhile, the DSE board on Tuesday extended the suspension period of trading of shares of crisis-hit People’s Leasing and Financial Services by 15 days from August 13.

The share prices of controversial Coppertech Industries, which made its debut on the country’s stock exchanges on Monday with an abnormal rise in its share prices, on Wednesday slumped by the highest possible mark (9.93 per cent) under the circuit breaker on the day to end at Tk 39 per share.

Coppertech was enlisted on the bourses despite the company facing allegations of faking paid-up capital formation and fabricating its financial data.

The average share price of the mutual fund sector lost 2.7 per cent on Wednesday and around 25 per cent in the last nine sessions as most of the mutual funds declared lower-than-expected dividends.

EBL Securities in its daily market commentary said, ‘The market started with an upward vibe but did not sustain as investors opted to take some profits from their portfolios ahead of holidays for Eid-ul-Azha.’

Recent year-end declarations from mutual funds might have failed to meet the investors’ expectation that resulted into a plunge in indices, it said.

Out of the 353 scrips traded on Wednesday, 206 declined, 111 advanced and 36 remained unchanged.

Turnover on the bourse decreased to Tk 449.04 crore on Wednesday from Tk 568.76 crore in the previous session.

DS30, the blue-chip index of the DSE, gained 0.02 per cent, or 0.54 points, to close at 1,836.99 points.

DSE Shariah index DSES dipped by 0.36 per cent, or 4.37 points, to close at 1,189.97 points.

JMI Syringes and Medical Devices led the turnover chart with its shares worth Tk 25.68 crore changing hands.

Khulna Power Company, Monno Ceramics, Coppertech Industries, Bangladesh Shipping Corporation, United Power Generation Company, Fortune Shoes, Monno Jute Stafflers, City Bank and Beacon Pharmaceuticals were the other turnover leaders.

ICB AMCL Second Mutual Fund gained the most on the day with a 6.41-per cent increase in its share prices while SEML FBSL Growth Fund was the worst loser, shedding 20.14 per cent.
Source: http://www.newagebd.net

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