Stocks rebound from one-day fall
The stock market yesterday bounced back from a single-day fall caused by Bangladesh Bank's ongoing stand-off with the Bangladesh Securities and Exchange Commission (BSEC).
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), soared 56 points, or 0.78 per cent, to 7,196 after nosediving by 77 points the previous day. The upward trend continued for the first hour of yesterday's trading session.
"People have huge confidence in the stock market. So they were buying stocks despite the situation between the central bank and BSEC," said a top official of a merchant bank.
In a meeting on Monday, Bangladesh Bank informed the BSEC that listed banks and non-bank financial institutions (NBFIs) cannot comply with the market regulator's directives on the capital market stabilisation fund and cash dividend payments as they are inconsistent with the Bank Company Act. The commission recently allowed listed companies to declare cash dividends from the profits made in the just-concluded financial year despite having accumulated losses.
"The finance minister's statement on the BSEC's decision was that it was taken by the government to boost investors' confidence," the merchant banker said, adding that people are investing in good stocks now.
"If they invest in good stocks, then they would not be losers. However, their position in junk and low paid-up capital-based companies can harm their fund anytime," he said.
Turnover, an important indicator of the market, grew by about 0.33 per cent to Tk 2,104 crore while it was Tk 2,097 crore a day earlier.
Tamijuddin Textile topped the gainers' list, rising 9.94 per cent, followed by Paper Processing & Packaging, Dominage Steel Building Systems, IPDC and Desh Garments.
Kattali Textile shed the most, falling 6.50 per cent, followed by Meghna Condensed Milk, Safko Spinning, Walton Hi-tech Industries, and Renwick Jajneswar.
At the DSE, 167 stocks rose, 153 declined and 55 remained unchanged.
The market oscillated between red and green in the first two hours of the session, however, the buying pressure from an optimistic group of investors snapped the early gloominess and aided the upsurge in indices, said International Leasing Securities in its market review.
The investors preferred to take long positions as they created lucrative buying opportunities in several fundamentally strong issues, it added.
Among the major sectors based on market capitalisation, miscellaneous rose 3.2 per cent, financial institution increased 2.6 per cent and cement grew 2 per cent while engineering dropped 2.4 per cent, and general insurance fell 1.3 per cent.
Stocks of Beximco Limited traded the most, worth Tk 116 crore, followed by LankaBangla Finance, Beximco Pharmaceuticals, IPDC and Islamic Finance & Investment.
The Chattogram Stock Exchange (CSE) also increased yesterday as the CASPI, the general index of the port city bourse, shot up by 143 points, or 0.69 per cent, to 21,001.
Among 317 traded stocks, 126 advanced, 159 fell and 32 remained unchanged.