Stocks inch up on cautious trading before MPS unveiling

Image: Bizbangladesh.net
Dhaka stocks inched up on Sunday despite a fall in the share prices of two-thirds of the traded scrips as some institutional investors continued buying shares of sector-specific large-capitalised companies while many investors remained cautious ahead of the monetary policy announcement by the central bank.

DSEX, the key index of Dhaka Stock Exchange, added 0.01 per cent, or 0.67 points, to close at 5,133.93 points on Sunday after gaining 55.96 points in the previous session.

The index gained 27 points within the first 20 minutes of the day’s session, but dipped to the red zone soon after before finishing slightly up.

Market operators said most of the investors remained cautious ahead of the announcement of monetary policy statement (MPS) by Bangladesh Bank and declaration of poor earnings disclosures by a number of listed companies.

The BB will declare monetary policy for the first half (July-December) of the financial year of 2019-20 on Wednesday.

The market, however, finished slightly up as some institutional investors continued investing in the market to arrest relentless plunge in share prices, market operators said.

They said although the market finished in the positive zone, the overall market scenario was mostly negative.

A number of listed companies declared lower-than-expected earnings for the April-June period that dampened the investors’ mood, they said.

Earnings per share (EPS) of United Commercial Bank, IDLC Finance, National Bank and Exim Bank decreased in the April-June period compared with that in the same period in the previous year.

Besides the concerns about MPS and EPS, investors are still struggling with the financial sector volatility triggered by liquidity crisis and liquidation move of  People’s Leasing and Financial Services, and Grameenphone’s tussle with the Bangladesh Telecommunication and Regulatory Commission over audit claim.

After DSEX dipped to a 31-month low on July 22, the Bangladesh Securities and Exchange Commission held meetings with the market intermediaries last week to find out reasons for the fall.

Market operators said the meetings eased the relentless fall in share prices in last week.

Besides, a section of investors became active after BB on July 22 asked 19 banks to support the capital market, they said.

The average share prices of food sector advanced by 2.04 per cent, pharmaceuticals 0.52 per cent, energy 0.18 per cent and bank 0.12 per cent.

On the other hand, mutual fund dropped by 6.83 per cent, general insurance 1.92 per cent, non-bank financial institution 0.74 per cent and textile 0.56 per cent.

Out of the 353 scrips traded on Sunday, 214 declined, 111 advanced and 26 remained unchanged.

Turnover on the bourse dropped to Tk 406.00 crore on Sunday from Tk 467.93 crore in the previous session.

DS30, the blue-chip index of DSE, gained 0.18 per cent, or 3.35 points, to close at 1,839.54 points.

DSE Shariah index DSES added 0.23 per cent, or 2.75 points, to close at 1,176.48 points.

United Power Generation Company led the turnover chart with its shares worth Tk 21.38 crore changing hands.

Bangladesh Shipping Corporation, Fortune Shoes, Monno Ceramics, SEML Lecture Equity Management Fund, Singer Bangladesh, Beacon Pharmaceuticals, Phoenix Finance 1st Mutual Fund, JMI Syringe and Medical Devices and Prime Islami Life Insurance were the other turnover leaders.

Bangladesh Autocars gained the most on the day with a 9.98-per cent increase in its share prices while Progressive Life Insurance Company was the worst loser, shedding 23.66 per cent.
Source: http://www.newagebd.net

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