Bangladesh stocks return to the black

By The Daily Star | Source: ANN
Bangladesh Stocks returned to the black yesterday, as investors went on a buying spree after the market reached its historic 40-month low on Monday with a further decline in turnover.

The general index of the Dhaka Stock Exchange ended at 3,654.75 points, gaining 44.32 points or 1.22 per cent. Turnover declined 5.71 per cent to 1.31 billion taka (US$16.7 million) than the previous day.

“Driven by lack of confidence, investors largely refrained from fresh investments despite prices reaching historical lows,” commented IDLC Investments in its regular market analysis.

Meanwhile, investment outlook stayed bleak over unchanged political dynamics, said the IDLC analysis.

“Stocks bounced back from two consecutive sessions of deep red as sellers were slightly reticent on the day,” said LankaBangla Securities, a stockbroker.

On the contrary, the declining turnover indicated that investors’ confidence was crumbling due to the ongoing political unrest in the country, said the stockbroker.

The nationwide strike called by the opposition parties also reduced investors’ participation, it said.

Of the 267 issues traded at the DSE, 224 advanced, 31 declined and 12 remained unchanged.

All the major sectors ended positive while the telecom sector with a 1.63 per cent gain topped the gainers’ list, followed by banks 1.58 per cent and power 1.51 per cent.

Pharma and non-bank financial institutions advanced 1.07 per cent and 0.23 per cent respectively. Cement gained 2.25 per cent as Premier Cement Mills topped the gainers chart with a price appreciation of 9 per cent.

Orion Pharma featured in the most traded stocks with 1.38 million shares worth 96.9 million taka (US$1.2 million) changing hands.

Singer Bangladesh was the day’s worst loser, slumping by 25.53 per cent following its price adjustments after a record date.

The Chittagong Stock Exchange closed positive with its selective categories index gained 101.52 points or 1.49 per cent, to close at 6,929.71 points.

Gainers beat losers 125 to 32 with 14 issues remaining unchanged on the port city bourse that traded 5.8 million shares and mutual fund units with 169.1 million taka (US$2 million) in turnover.