Dhaka stocks edged up on Wednesday in choppy trading as investors became jittery again because of a fresh liquidity crisis and the market regulators’ two latest directives on margin loan and face value of securities, market operators said.
The benchmark general index of DSE had a bumpy ride on the day and finished up by 28.16 points, or 0.39 per cent, to close at 7,309.14 points, led by bank issues.
The daily turnover came down to Tk 714.48 crore from the previous day’s Tk 983 crore as investors were hesitant in making investment following the downtrend in the previous two days and the issuance of two directives by the Securities and Exchange Commission.
The SEC on Tuesday decided that from now on merchant banks and stockbrokers, instead of the SEC, would set margin loan ratio for their clients.
The commission on Wednesday postponed conversion of face value of the listed companies to Tk 10 for an indefinite period.
Market expert said most of the investors became worried after the issuance of the new directive on margin loan as they feared that merchant banks would practice discrimination in providing loans to their clients, favouring large investors.
The commission’s move on splitting of face value of shares also created panic among the investors, while some institutional investors bought shares in bulk after a two-day fall, said experts.
Some investors also opted for a ‘wait-and-see’ policy on the day, they said.
A DSE stockbroker said banks dominated the day as investors anticipated good corporate declarations from the banks.
Out of 30 bank issues, 28 made progress on the day and share prices of other major sectors like NBFIs, insurance companies, fuel and power, pharmaceuticals and chemicals, textile and telecommunication dropped.
Professor Mahmud Osman Imam, who teaches finance at Dhaka University said, ‘The market gained on the day as some institutional investors bought shares in a bid to keep the market stable.’
The bourse’s turnover dipped as participation of investors was low, the stockbroker added.
Yewar Sayeed, managing director of Aims said, ‘The market finished the day upbeat led by bank stocks. Investors are waiting for good corporate results from banks.’
Market expert Akter H Sannamat said, ‘Investors are losing confidence on the market again after a brief period of recovery.’ ‘The commission should find rumour-mongers in the market,’ he added.
Of the total 256 issues traded on the bourse, 67 advanced, 182 declined and seven remained unchanged.
NBL topped the turnover leasers with 42.15 lakh shares worth Tk 73.78 crore traded on the day.
The other turnover leaders were United Commercial Bank, Bay Leasing and Investment, Peoples Leasing and Financial Services, Beximco, Titas Gas, Southeast Bank, Grameenphone, United Airways, and Mutual Trust Bank.
