Stocks gain for 6th day as trading resumes after Eid closure

Image: Bizbangladesh.net
Dhaka stocks gained for the sixth day on Sunday as some investors continued buying shares on budget-centric hopes after trading at the Dhaka Stock Exchange resumed after a nine-day recess due to Eid-ul-Fitr and weekly holidays.

Market operators said despite the upward trend at the market, some other investors remained watchful amid a severe liquidity crisis at the country’s banking sector.

DSEX, the key index of DSE, increased by 0.46 per cent, or 25.22 points, to close at 5,402.96 points on Sunday. The index gained 150 points in last six sessions.

The market started gaining from the very beginning on Sunday and maintained the upward trend till the end of the session as a section of investors kept buying shares amid expectations over the upcoming budget, market operators said.

They said that investor hoped that the government would provide some incentives for the capital market in the upcoming budget. Finance minister AHM Mustafa Kamal earlier said that there would be some incentives in the FY 2019-20 budget that would be placed before parliament on Thursday.

Besides, the regulator Bangladesh Securities and Exchange Commission has been taking some initiatives to recoup the investors’ confidence in the regulator. Investors’ trust was shattered due to stock price plunges in recent months, market operators said.

The commission on May 31 proposed that IPO quota facility for the general investors to be increased by 10 percentage points.
The commission on the day also approved a draft amendment proposal to the IPO rules to prevent manipulation and fraudulent activities centring IPO issuance.

The average share prices of energy sector advanced by 1.45 per cent, that of non-bank financial institution sector by 1.01 per cent, that of telecommunications sector by 0.45 per cent, and that of textile sector by 0.53 per cent. Out of the 346 shares and mutual funds traded, 171 advanced, 125 declined and 49 remained unchanged.

The dearth of liquidity in the financial sector that has been hurting the capital market for more than four months is yet to be eased.
Turnover at the bourse dropped to Tk 304.66 crore from Tk 425.00 crore in the previous session.

The average share prices of general insurance, bank and miscellaneous sectors dropped by 1.39 per cent, 0.86 per cent and 0.47 per cent respectively. DS30, the blue-chip index of DSE, gained 0.66 per cent, or 12.44 points, to close at 1,889.03 points.

DSE Shariah index DSES added 0.47 per cent, or 5.81 points, to close at 1,220.07 points. National Life Insurance led the turnover chart with its shares worth Tk 18.82 crore changing hands.

United Power Generation Company, Eastern Housing, Eastern Cables, New Line Clothings, JMI Syringe, Bangladesh Submarine Cables, FAS Finance, Fortune Shoes and Khulna Power Company were the other turnover leaders.

Eastern Housing gained the most on the day with a 9.83-per cent increase in its share prices while Mercantile Bank was the worst loser, shedding 12.22 per cent.

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