Stocks gain slightly in cautious trading
Image collected
Dhaka stocks gained marginally on Sunday despite a fall in share prices of most of the scrips and investors’ participation as some institutional investors went for bargain hunting targeting the large capitalised companies to support the falling market while most of the investors remained on the sidelines.
DSEX, the key index of the Dhaka Stock Exchange, increased by 0.23 per cent, or 11.10 points, to end at 4,782.09 points on Sunday after losing 50.63 points in the previous session.
In line with the previous session, the market began Sunday’s session on a negative note but rebounded soon after to end the session in the positive territory as some investors, especially a section of institutional investors, went for buying shares to support the ailing capital market, market operators said.
Share prices of Grameenphone increased by 0.95 per cent on Sunday after losses in the previous two sessions following the news that the High Court on October 17 issued an injunction for two months on realisation of Tk 12,579.95 crore in audit claim from GP by the Bangladesh Telecommunication Regulatory Commission.
Despite the market ending positive, the overall market scenario was gloomy as share prices of most of the companies dropped and the investors’ participation was very poor on Sunday.
Turnover on the DSE decreased to Tk 312.63 crore on Sunday from Tk 313.14 crore in the previous session.
Most of the investors remained on the sidelines as they hesitated to invest in the market which has been falling for nine months.
The DSEX dropped in 10 out of last 12 trading sessions as the investors’ risk-taking appetite continued sliding.
Market operators said investors had lost confidence in the market as the government and the market regulator continued failing to revive the market.
Therefore, they preferred to withdraw investments to avoid further losses, they said.
The DSEX had gained 110 points on October 15 following moves taken by the Bangladesh Bank and the Investment Corporation of Bangladesh after a six-day rout, but the market returned to the losing track in the following day as the market-reviving moves failed to improve the investors’ confidence in the regulators, market operators said.
On October 14, the BB released Tk 50 crore in loans in favour of The City Bank to invest in the capital market in line with the central bank’s move to support the ailing stock market.
The ICB also announced on the same day that it had received Tk 200 crore from state-owned Sonali Bank, which would be invested in the secondary market.
Apart from lack of confidence in the regulators, the investors were grappling with a number of issues including rising non-performing loans and liquidity shortage in the financial sector, and Grameenphone’s ongoing dispute with the BTRC over the audit claim.
The average share prices of miscellaneous, general insurance and non-bank financial institution dropped by 1.5 per cent, 0.4 per cent and 0.3 per cent respectively.
EBL Securities in its daily market commentary said, ‘Last week’s continued price correction tempted the bargain hunters to take position on lucrative price level especially in energy, food & allied and bank sectors.’
‘On the other hand, the risk-averse investors opted to liquidate their holdings from miscellaneous, financial institutions and ceramics sectors,’ it said.
The average share prices of energy sector gained 1.4 per cent, bank 0.41 per cent, pharmaceutical 0.4 per cent and telecommunication 0.2 per cent on Sunday.
Out of the 352 scrips traded on the day, 180 declined, 129 advanced, and 43 remained unchanged.
Blue-chip index DS30 added 0.41 per cent, or 6.93 points, to close at 1,685.95 points.
DSE Shariah index DSES gained 0.47 per cent, or 5.17 points, to end at 1,099.20 points.
National Tubes led the turnover chart with its shares worth Tk 14.43 crore changing hands on the day.
Standard Ceramic, Monno Jute Stafflers, Paramount Textiles, Summit Power, Sonar Bangla Insurance, Agrani Insurance, Silco Pharmaceuticals, Continental Insurance and United Power Generation Company were the other turnover leaders.
Malek Spinning Mills gained the most on the day with a 12.17-per cent increase in its share prices while Al-Haj Textile performed the worst, losing 8.88 per cent.
Source: http://www.newagebd.net
Tags :
Previous Story
- Investors pushed to limits amid free fall of...
- BO accounts drop off in lakhs as investors...
- United Air stocks rise on comeback rumours
- Stocks open post-Eid session higher
- Stocks finish flat as Eid holidays near
- Dhaka stocks gain for 2nd week on earnings...
- Stocks inch up on cautious trading before MPS...
- People's Leasing liquidation leads to losses of financial...