Stocks inch up ahead of Mustafa’s meeting with stakeholders

Image: Bizbangladesh.net
Dhaka stocks on Sunday inched up for the second session amid cautious trading ahead of finance minister AHM Mustafa Kamal’s meeting with the capital market stakeholders today.

DSEX, the prime index of the Dhaka Stock Exchange, advance by 0.16 per cent, or 8.33 points, to close at 4,942.23 points on Sunday, after gaining 0.71 points in the previous session.

The market gained slightly at the beginning of the day’s trading, but dropped to the negative zone amid cautious trading by some of the investors, market operators said.

The market, however, rebounded in the last hour amid buy pressure by some of the institutional investors, they said.

They said that the institutional investors went for buying shares amid media reports that finance minister AHM Mustafa Kamal would sit with the stakeholders today to discuss about the ongoing turmoil in the capital market.

Some investors hoped that the finance minister might find out a way to instil confidence in investors.

Besides, share prices of almost all the insurance companies surged on the day as Kamal declared on Sunday that non-listed insurance companies must get enlisted with the stock exchanges within three months.

Kamal made the statements at a meeting with the senior officials of the insurance companies in Dhaka.

As a result, average share prices of general insurance and life insurance sectors advanced by 5.63 per cent and 2.47 per cent respectively.

Share prices of telecommunication and bank sectors also rose by 0.76 per cent and 0.57 per cent respectively on the day.

Although the DSEX ended in positive zone, the overall market scenario continued to be gloomy amid concern over the liquidity crisis in the financial market due to the government’s move to divert funds from state-owned enterprises to national exchequer.

Besides, some institutional investors remained cautious following Bangladesh Securities and Exchange Commission’s decision taken on Thursday to punish at least 10 investors for manipulating share prices of 12 companies.

As a result, turnover on the bourse dropped to Tk 317.08 crore on Sunday from Tk 405.1 crore in the previous session.

The BSEC investigation found that manipulation and serial trading occurred involving the shares of 12 listed companies that included United Power Generation Company, VFS Thread Dyeing, IPDC Finance, SS Steel, Intech Limited, Saiham Textiles, Saiham Cotton Mills, Rupali Life Insurance Company, Monno Ceramics, Monno Jute Stafflers, Investment Corporation of Bangladesh and Dutch-Bangla Bank in recent months.

Out of the 12 companies, share prices of 10 companies dropped on the day with Monno Ceramics and Monno Stafflers hitting the lowest level for the day.

Average share prices of food, textile and pharmaceuticals dropped by 1.59 per cent, 0.84 per cent and 0.42 per cent respectively.

DS30, the blue-chip index of the DSE, shed 0.21 per cent, or 2.54 points, to close at 1,738.93 points.

DSE Shariah index DSES gained 0.10 per cent, or 1.86 points, to close at 1,154.24 points.

National Tubes led the turnover chart with its shares worth Tk 32.26 crore changing hands.

JMI Syringe, Beacon Pharmaceuticals, Wata Chemicals, Legacy Footwear, United Power Generation Company, Eastern Cables, Stylecraft, Bangas and VFS Thread Dying were the other turnover leaders.

Global Insurance gained the most on the day with a 10-per cent increase in its share prices while Al-Haj Textile Mills was the worst loser, shedding 9.99 per cent.  
Source: http://www.newagebd.net

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