Stocks inch up ahead of Eid holidays, New Line Clothings’ debut

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Dhaka stocks inched up on Sunday amid investors’ cautious trading ahead of Eid holidays and today’s debut of New Line Clothings.

DSEX, the key index of Dhaka Stock Exchange, advanced by 0.05 per cent, or 2.73 points, to close at 5,253.32 points on Sunday.

The trading pattern on the first day of the week was almost identical to that on Thursday, albeit a meagre drop of 0.34 points in DSEX, said market operators.

The trading on the bourse was lacklustre with few ups and downs but despite a fall in prices of the majority of the scrips, DSEX managed to end in the positive zone banking on financial sector scrips, they said.

Out of the 346 shares and mutual funds traded, 183 declined, 121 advanced, and 42 remained unchanged.

Investors were cautious on Sunday as it was the first day of the last week before DSE goes into a 9-day recess, they said.

Besides, the announcement by DSE about the date of debut of New Line Clothings also made some of investors cautious because of lack of demand against supply of new scrips in the volatile market, said a stockbroker.

Dhaka stocks have been going through a rough patch for the last few weeks despite the government’s effort to rejuvenate investors by giving a host of incentives.

Market operators said some of the investors on Sunday also rebalanced their portfolios ahead of the Eid holidays and announcement of the national budget for the upcoming fiscal year of 2019-20.

Finance minister AHM Mustafa Kamal is scheduled to place in parliament the national budget for the next fiscal year on June 13.

EBL Securities in its daily market update said, ‘The capital bourse of the country closed in marginally higher today [Sunday] amid optimism. The index remained volatile throughout the session as opportunistic investors opted to take fresh position for re-establishing their portfolio with lucrative price level in sector specific large-cap stocks.’

The average share prices of life insurance sector soared by 6.6 per cent while general insurance rose by 1.9 per cent, bank by 1.1 per cent and non-bank financial institutions by 0.4 per cent.

The prices of most of the other sectors, however, fell with food sector plunging by 4.3 per cent, IT by 1.8 per cent, travel by 1.2 per cent, paper by 1 per cent, services by 0.9 per cent and cement by 0.8 per cent.

Turnover at the bourse rose to Tk 328.91 crore from Tk 319.48 crore in the previous session. DS30, the blue-chip index of DSE, however, fell by 0.40 per cent, or 7.44 points, to close at 1,825.37 points on Sunday.

The Shariah index of the bourse, DSES, dropped to 1,190.17 points, shedding 0.23 per cent or 2.72 points.

British American Tobacco Bangladesh led the turnover chart with its shares worth Tk 14.46 crore changing hands.

Eastern Cables, Fortune Shoes, National Life Insurance Company, Doreen Power Generations and Systems, IFIC, United Power Generation, Rupali Life, Monno Ceramic Industries and SK Trims and Industries were the other turnover leaders.

National Life Insurance Company gained the most on the day with a 9.98 per cent increase in its share prices while Phoenix Finance and Investments was the worst loser, shedding 11.15 per cent.

DSE officials said the trading on the bourse would remain closed for nine days starting from May 31 because of weekly holidays and Eid-ul-Fitr holidays.

Trading on the bourse will resume on June 9. The DSE board of directors has approved one-day special holiday on June 3 and the government holidays for Eid-ul-Fitr begins on June 4.

DSE in a web post on Sunday said that trading and official activities of the bourse would resume under the usual schedule after the Eid holidays.
Source: http://www.newagebd.net

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