Stocks gain for 3rd day on GP, LafargeHolcim

Image collected
Dhaka stocks gained for the third day on Wednesday as a section of investors kept buying undervalued stocks including Grameenphone and LafargeHolcim Bangladesh.

DSEX, the key index of Dhaka Stock Exchange, added 0.17 per cent, or 8.04 points, to close at 4,730.34 points on Wednesday.

The DSEX gained 42 points in last three sessions.

The market opened on a positive note on Wednesday and maintained the vibe until the end of the session as a section of investors kept buying shares of undervalued stocks while the others remained cautious, market operators said.

They said that investors anticipated that the market would now remain positive as it had already reached to its bottom level.

Some institutional investors took the bearish market as an opportunity of maximising their profits, they said.

However, many investors on the day preferred to sell off their holdings after a slight gain.

In last 10 months of bearishness, investors witnessed that the market could not sustain a gaining trend for more than three or four sessions.

The DSEX lost more than 1,200 points in last 10 months that had lowered the level of the investors’ confidence.

Share prices of most of companies declined on Wednesday as the prolonged bear run at the market haunted investors.

The volatility in the financial sector and poor financial disclosures by the listed companies also dampened the investors’ mood.

Among the large capitalised companies, share prices of LafargeHolcim Bangladesh and Grameenphone soared by 9.72 per cent and 3.33 per cent respectively that contributed most to the market rise on Wednesday.

GP gained after three days of fall after Supreme Court ordered the company to pay Tk 2,000 crore out of Tk 12,580 crore in audit claim to the Bangladesh Telecommunication Regulatory Commission in three months.

LafargeHolcim Bangladesh in a web post on Tuesday said that the High Court Division of the Supreme Court of Bangladesh passed its judgment approving the scheme of amalgamation of Holcim Cement (Bangladesh) Limited with LafargeHolcim Bangladesh Limited.

Turnover on the DSE increased to Tk 564.22 crore on Wednesday from Tk 560.36 crore in the previous day.

Wednesday’s turnover hit a fresh two-month high after September 30 when the turnover was Tk 595.78 crore.

EBL Securities in its daily market commentary said that the DSEX went up, riding on GP’s price appreciation that caused the market to remain afloat at the end of the session.

The market on Wednesday opened positive and the DSEX jacked up by 42 points but the investors’ profit-booking sales pressure in mid-session cancelled out most of the early gains.

Out of the 336 scrips traded on Wednesday, 118 advanced, 189 declined and 42 remained unchanged.

DSE blue-chip index DS30 gained 0.7 per cent, or 11.53 points, to close at 1,646.33 points.

Shariah index DSES also added 0.62 per cent, or 6.73 points, to end at 1,081.97 points.

LafargeHolcim Bangladesh led the turnover chart with its shares worth Tk 44.78 crore changing hands on Wednesday.

Square Pharmaceuticals, Sonar Bangla Insurance, Fortune Shoes, Beximco Pharmaceuticals, Shurwid Industries, Stylecraft, Doreen Power, LankaBangla Finance and City Bank were the other turnover leaders.

LafargeHolcim Bangladesh gained the most on the day with a 9.71-per cent increase in its share prices while Nahee Aluminum Composite Panel performed the worst, losing 11.67 per cent.
Source: http://www.newagebd.net

Share this news on: