Stocks rebound on Bangladesh Bank move to ease NBFIs’ liquidity crisis

Image: Bizbangladesh.net
Dhaka stocks rebounded on Tuesday as investors went for buying shares following Bangladesh Bank move to ease liquidity shortage of crisis-hit non-bank financial sectors.

DSEX, the key index of the DSE, added 26.92 per cent, or 0.52 points, to close at 5,187.29 points on Tuesday after losing 12.49 points in the previous session.

The market started to gain from the very beginning of the day and finished the session in positive zone following the BB move taken on Monday to enhance borrowing capacity of NBFIs from the call money market.

Market operators said that many of the investors were encouraged by the recent better-than-expected earnings declarations of a number of banks and the latest BB move for NBFIs.

The country’s banking sector has faced severe criticism in recent months over the soaring non-performing loans while a number of NBFIs are facing severe liquidity shortage.

A number of NBFIs have been failing to repay depositors’ money on time while the government is moving to liquidate crisis-hit Peoples Leasing and Financial Services.

Investors hoped that following the BB move, NBFIs’ liquidity shortage would ease, said market operators.

Therefore, average share prices of non-bank financial institutions and banks advanced 0.7 per cent and 0.4 per cent respectively.

They said that some of investors hoped that market would rise after Eid holidays while some others eyed upcoming dividend declarations of the companies which had closed their annual accounts in June.

Share prices of telecommunication and energy sectors also rose by 3.2 per cent and 2.4 per cent respectively.

EBL Securities in its daily market commentary said ‘The market bounced back today [Tuesday] and closed in green. Investors started injecting fund to take position in the undervalued scrips.’

‘The core index experienced consistent trading throughout the session and buying pressure outweighed the selling pressure which triggered the bourse to settle in green,’ it said.

The share prices of controversial Coppertech Industries, which made its debut on the country’s stock exchanges on Monday with abnormal rise of its share prices, slumped by 2.33 per cent on the day.

The average share price of the mutual fund sector lost around 23 per cent in the last eight sessions as most of the mutual funds declared lower-than-expected dividends.

Out of the 353 scrips traded on Tuesday, 136 declined, 173 advanced and 45 remained unchanged.

Turnover on the bourse increased to Tk 568.76 crore on Tuesday from Tk 477.36 crore in the previous session.

DS30, the blue-chip index of DSE, gained 0.53 per cent, or 9.76 points, to close at 1,836.45 points.

DSE Shariah index DSES added 0.39 per cent, or 4.66 points, to close at 1,194.35 points.

United Power Generation Company led the turnover chart with its shares worth Tk 30.21 crore changing hands.

Monno Ceramics, Bangladesh Shipping Corporation, JMI Syringe, Indo-Bangla Pharmaceuticals, VFS Thread Dyeing, Khulna Power Company, Fortune Shoes, Bangladesh Submarine Cable Company and Square Pharmaceuticals were the other turnover leaders.

Khulna Power Company gained the most on the day with a 10-per cent increase in its share prices while VFS Thread Dyeing was the worst loser, shedding 9.95 per cent.

The DSE, meanwhile, in a statement on Tuesday urged a section of investors to abstain from any kind of protests over up and down movements of the stock indexes for the interest of the capital market.

The bourse also requested media to avoid in the news reports ‘irrelevant words’ like ‘looting’ or ‘disappear’ of funds from the stock market.
Source: http://www.newagebd.net

Tags :

Share this news on:

Previous Story

Trending Topics

Archive