Dhaka stocks gain amid volatility

DSEX, the key index of the Dhaka Stock Exchange (DSE) ended at higher note posting a 47 points or 0.74 per cent gain on Tuesday amid volatile trading in the early hours.   

The trading session opened at 6,482 points and went down to 6,423 points but DSEX, the benchmark index, ended at 6,530 points.

Daily turnover at the DSE increased by 53.65 per cent to Tk600 crore. The miscellaneous sector representing different types of business dominated the turnover chart, covering 15.71 per cent of the total turnover.

The services and real estate, fuel and power, and ceramics sectors closed positive, while the IT, jute, and paper and printing sectors faced prices corrections on the day.

The DSE 30 Index, comprising blue chips, rose 26.43 points to finish at 2,436 points and the DSE Shariah Index (DSES) advanced 14.72 points to close at 1,443 points.

Gainers took a modest lead over the losers, as out of 378 issues traded, 195 advanced, 132 declined, and 51 remained unchanged on the DSE trading floor.

“The market started low but bargain hunters favored taking positions in selective issues, taking advantage of the past two days’ lows, while some investors are still on the sidelines awaiting upcoming earnings disclosures that will help them assess the impact of price instabilities on company financials,” said EBL Securities in its daily market commentary.

Market insiders said that the new fund from the Capital Market Stabilization Fund (CMSF) and BRAC Bank invested in the capital market on the day.

It also said that the stocks rebounded with renewed investors’ optimism as panicked sales stopped following the news that the securities regulator suspended 15 authorised traders for violating securities rules.

The traders were guilty of flouting the Bangladesh Securities and Exchange Commission (BSEC) code of conduct while dealing in the shares of some companies.

The traders ordered the sale of large sums of shares without quoting any price or “market price” or “zero price” order.

The liquidity crunch in the capital market might worsen further amid growing consumption in Ramadan and the upcoming spending spree centering on Eid-ul-Fitr. Persistent pessimism kept investors inactive, as they lost their appetite for risk-taking in the negative market.

The suspended traders are five from ICB Securities, two from Rashid Investment Services, two from Shyamol Equity Management, and one trader each from Parkway Securities, Quayum Securities, Mercantile Bank Securities, TA Khan Securities, JKC Securities, and Kazi Equities Limited.

The port city’s bourse, the CSE, is also settled on green terrain. The selected indices (CSCX) and the All Share Price Index (CASPI) have advanced by 61.3 points and 101.4 points, respectively.