Stocks gain for 2nd day but volatility remains
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Despite a fall in the share prices of most of the scrips in cautious trading, Dhaka stocks gained for the second day on Sunday as some institutional investors continued bargain hunting amid regulatory intervention.
DSEX, the prime index of the Dhaka Stock Exchange, added 0.41 per cent, or 20.78 points, to close at 5,033.79 points on Sunday after gaining 26.64 points in the previous session.
Before the two-day rally, the DSEX lost 192 points in six sessions.
In line with the previous session, the market started gaining from the very beginning on Sunday and maintained positive momentum to end the day with moderate gain as a section of investors continued bargain hunting amid some institutional supports, market operators said.
Market regulator Bangladesh Securities and Exchange Commission at a meeting with the capital market stakeholders including stock exchanges on Thursday said that finance minister AHM Mustafa Kamal had assured him that he would encourage and direct the banks to invest in the capital market up to their exposure limit from the current week.
Market operators said the news might encourage some investors to inject funds in the market.
Typically, the market goes positive for few days after the regulator holds any meeting with the stakeholders, they said.
Besides, some investors went for bottom fishing as the share prices of most of the companies witnessed a sharp fall in recent months, they said.
The share prices of Grameenphone advanced by 1.3 per cent on Sunday for the second day. Before the gains, the largest capitalised company plunged by 9.6 per cent in six sessions over the mobile operator’s tussle with the Bangladesh Telecommunication Regulatory Commission over an audit claim.
The average share prices of telecommunication sector advanced by 1.47 per cent, non-bank financial institution 0.90 per cent, bank 0.89 per cent and pharmaceuticals 0.45 per cent.
The share prices of most of the companies declined in cautious trading on Sunday.
The market has been struggling for a year due to a host of reasons including investors’ lack of confidence in regulatory bodies, troubled financial sector, huge foreign portfolio sales, and Grameenphone’s tussle with the telecom regulator.
The downward trend wiped out around Tk 45,000 crore of market capitalisation in last seven months.
Market operators said the investors’ confidence was shattered due to poor regulatory activities.
The investors’ concern on the financial sector was extended as the cabinet approved a draft law that would allow the government to use the idle funds of state-owned corporations worth Tk 2,12,100 crore for development work.
The ongoing liquidity crisis would worsen if the government transferred the money from banks to the national exchequer, market experts said.
Out of the 352 scrips traded, 172 declined, 129 advanced and 52 remained unchanged.
Turnover on the bourse dropped to Tk 371.61 crore on Sunday from Tk 427.65 crore in the previous session.
DS30, the blue-chip index of the DSE, gained 0.48 per cent, or 8.55 points, to close at 1,766.76 points.
DSE Shariah index DSES added 0.37 per cent, or 4.41 points, to close at 1,171.48 points.
National Tubes led the turnover chart with its shares worth Tk 32.61 crore changing hands.
Beacon Pharmaceuticals, Monno Ceramics, Stylecraft Limited, Monno Jute Stafflers, Fortune Shoes, Silco Pharmaceuticals, Bangladesh Submarine Cable Company, Khulna Power Company and Bangas Limited were the other turnover leaders.
National Tubes gained the most on the day with a 9.97-per cent increase in its share prices while Phoenix Finance 1st Mutual Fund was the worst loser, shedding 7.35 per cent.
Source: http://www.newagebd.net