Dhaka stocks inched down on Monday amid volatile trading with an increased turnover due to profit-taking selling by investors after gains in the previous four trading sessions.
The benchmark general index of Dhaka Stock Exchange, DSEX, declined by 0.34 per cent, or 14.86 points, to finish at 4,263.23 points.DGEN, the old key index of the DSE, finished flat at 4,559.38 points, advancing by 0.01 per cent or 0.71 points on Monday.
The DSEX started positive as it gained 16 points in the first five minutes of the day’s trading.
It lost 20 points in the next 25 minutes to enter into the negative zone.
In the next 15 minutes the key index increased around 20 points to enter into the positive zone again, but it failed to sustain it due to the profit-taking move taken by the investors.
The DSEX had gained 173.45 points in the previous four trading sessions.
The turnover of the bourse increased to Tk 991.86 crore from the previous trading session’s Tk 858.25 crore.
Market operators said a section of investors on the day moved to book some profits which led the market to a flat finish despite a positive start.
They also said that another section of investors were active on the trading floor to buy shares from the very beginning of the day as they thought the market might rise further following recent refinance move taken by the government.
They said the recent behaviour of the market seemed very positive as the participation of all types of investors were increasing as their confidence in the market increased due to the different government decision to boost the market.
The blue-chip index of the bourse, DS30, closed at 1,600.32 points, advancing by 0.07 per cent or 1.17 points.
Of the 290 shares and mutual funds traded on the day, 96 advanced, 173 declined, and 21 remained unchanged.
‘Though the market ended flat, growing participation helped to absorb sell pressure like last few sessions,’ IDLC Investments said in its daily market commentary.
Fuel and power sector continued to dominate the market as the sector occupied 21.61 per cent of the day’s total turnover.
United Airways led the turnover chart with its shares worth Tk 87.19 crore changing hands on the day.
JMI Syringes and Medical Devices gained the most on the day as its share price increased by 9.96 per cent, while Third ICB Mutual Fund lost the most, shedding 7.74 per cent.
A finance ministry guideline which was sent to the Investment Corporation of Bangladesh and the Bangladesh Bank on Sunday said small-scale investors would get the government’s refinance fund at 10 per cent interest from the merchant banks and brokerage houses.
The ministry guideline also said that the BB would charge 5 per cent, while the ICB would disburse the fund at 6 per cent rate to the merchant banks and brokerage houses.
The BB will manage the fund through the ICB and the government will release the fund as interest-free loan on behalf of the BB, it also said.
The finance ministry on the day released Tk 300 crore, the first phase of Tk 900 crore in favour of the Bangladesh Bank.
The ministry will release the rest Tk 600 crore by December.
-With New Age input
