Stocks up for 3rd day as investors focus on undervalued scrips
Dhaka stocks inched up on Tuesday in volatile trading as a section of investors kept buying undervalued scrips including bank and textile shares.
Market operators said the share prices of many scrips came down to more than a-year lows as the Dhaka Stock Exchange’s key index, DSEX, lost more than 4 per cent or 231 points in the month of September amid political worries ahead of the national election.
On Tuesday, DSEX added 0.20 per cent, or 11.01 points, to close at 5,380.93 points. The key index gained 38 points in last three sessions.
The market went through fluctuations on the day but managed to remain afloat at the end of the session as a section of investors, mainly institutional ones, kept buying undervalued stocks, market operators said.
The average share prices of textile and bank advanced by 1.5 per cent and 0.8 per cent respectively on Tuesday.
The share prices of cement and food also gained on the day.
‘Investors’ fresh buying from sector-specific stocks with lucrative price level triggered the index to rise upward after experiencing a flat session,’ said EBL Securities in its daily market commentary.
Market experts said that investors were unsettled on the trading floor, making the market volatile in recent weeks as political tensions ahead of the national polls had been the driving force of the market.
The national election is due by January next year.
The average share prices of energy, non-bank financial institution and telecommunication sectors dropped by 0.9 per cent, 0.7 per cent and 0.2 per cent respectively.
The turnover on DSE, however, declined to Tk 488.40 crore on Tuesday compared with that of Tk 550.52 crore in the previous trading session.
Among the large capitalised scrips, the share prices of Dutch-Bangla Bank, BRAC Bank and Islami Bank advanced most while United Power Generation Company, Khulna Power Company and Grameenphone declined most on the day.
Of the 336 companies and mutual funds traded on Tuesday, 153 advanced, 158 declined, and 25 remained unchanged.
DS30, the blue-chip index of DSE, also added 0.22 per cent, or 4.33 points, to close at 1,892.66 points.
Shariah index DSES gained 0.08 per cent, or 1.10 points, to finish at 1,241.29 points.
United Power Generation Company led the turnover chart with its shares worth Tk 44.84 crore changing hands.
IFAD Autos, Nurani Dyeing, Khulna Power Company, Dragon Sweater, VFS Thread Dyeing, Stylecraft, Intech Limited, Monno Ceramics and BBS Cables were the other turnover leaders.
Pacific Denims gained the most on the day with a 10-per cent increase in its share prices, while Republic Insurance Company was the worst loser, shedding 9.37 per cent.
Source: http://www.newagebd.net