Dhaka stocks advanced on Wednesday after three sessions thanks to active participation of the institutional investors who were busy buying shares on the cheap.
The benchmark general index of Dhaka Stock Exchange, DSEX, finished at 3,954.48 points, adding 0.66 per cent or 26 points. DS30, the blue-chip index of the bourse, gained 0.46 per cent, or 6.64 points, to close at 1,441.67 points.
The DSEX and DS30 had lost 209.45 points and 88.25 points respectively in the last 11 trading sessions.
Market operators said that along with the Investment Corporation of Bangladesh some other institutional investors increased their participation on the trading floor on the day as they found shares available at lucrative prices after the recent downtrend.
The turnover of the bourse remained below Tk 300 crore as the retail investors were suffering from lack of confidence seeing no improvement on the political front, they added.
An amiable solution between the ruling party and the opposition alliance regarding the next polls-time government might boost the investors’ confidence in the market, the operators observed.
Sell-offs by a section of investors ahead of the Eid-ul-Azha might be another reason behind the lower turnover, they said.
‘Market came back into positivity with investors’ hub in lucrative scrips. Last few sessions’ continuous wane created some stimulus of undervaluation, which lured some of the witty participants to take position and create a natural re-bounce,’ IDLC Investments said in its daily market commentary.
‘As a result, the bourse ended green and regained 26.00 points after losing 84.89 points in last three straight sessions,’ it said.
IDLC said ‘in spite of increased turnover of 19.17% from that of the previous session, sluggishness in activity prevailed as investors were observing surrounding phenomenon.’
The turnover of the bourse increased to Tk 286.63 crore on the day from the previous session’s Tk 240.51 crore.
Of the 288 shares and mutual funds traded on the bourse, 208 advanced, 52 declined and 28 remained unchanged.
Envoy Textile Mills led the turnover chart as its shares worth Tk 12.45 crore changed hands while Bangladesh Submarine Cable Company, Argon Denims, United Airways, Square Pharmaceuticals, CMC Kamal, JMI Syringes and Medical Devices, Bangladesh Shipping Corporation, RN Spinning and Delta Life Insurance the day’s other turnover leaders.
Aamra Technologies gained the most on the day as the price of its shares increased by 9.96 per cent, while Third ICB Mutual Fund lost the most, 7.92 per cent.
-With New Age input
