Dhaka stocks on Thursday bounced back from the previous day’s steep fall with the benchmark general index of the Dhaka Stock Exchange gaining 128.60 points, or 1.52 per cent, to close at 8,580.19 points.
The market recovered fast as investors went on a buying binge after the Securities and Exchange Commission on Wednesday had postponed its directives on advance netting facility and share-trading with investors’ cheques not yet cleared by their banks, besides announcing a committee to probe the market plunge.
The DSE general index on Wednesday lost 547.43 points by midday for the first time in its history. The market however regained some poise in the afternoon following the SEC moves and managed to end the day with the index shedding but 134.28 points. The index had lost a total of 466.91 points since Monday to Wednesday following stringent and short-term directives issued by the securities market regulator.
Akter H Sannamat, managing director of the merchant bank Prime Financial Investment, said the commission’s declaration of instituting a committee to investigate Wednesday’s market plunge increased investors’ confidence and encouraged them to go for share-purchase on the last trading day of the week.
SEC member Farhad Ahmed heads the probe committee, with ATM Tariquzzaman, Mahbub Alam, and Tania Sharmin serving as the other members. The probe body is to submit its report by January 10.
‘I think the market should have an increased supply of shares to prevent any more single-day plunge,’ Sannamat maintained.
Institutional investors bought shares heavily on the day, a stockbroker said, adding that insurance companies, financial institutions, and fuel and power sectors also pulled the market.
Insurance companies gained as the central bank directed them to double their paid-up capital soon, explained another broker.
The eight listed state-owned enterprises also advanced on Thursday as investors became almost certain that the government was not going to offload more of its stakes in the SoEs, as declared by the finance minister on October 24, anytime soon, he added.
GrameenPhone, one of the trendsetting scrip, also helped the market rally on Thursday.
Salahuddin Ahmed Khan, a former DSE chief executive officer who returned to his original occupation of a finance teacher at Dhaka University, echoed Sannamat by saying that the SEC chief’s announcement to investigate Wednesday’s market fall boosted investors’ confidence. He said the capital market watchdog should issue long-term directives, not short-term ones, to rein in the bull run.
Of the 242 issues traded on the day, 220 advanced and 22 declined.
The daily turnover was Tk 1,622.75 crore, down by Tk 346.74 crore from that of Wednesday.
Shinepukur Ceramics topped the turnover leaders with 50.55 lakh shares worth around Tk 62.74 crore traded on the day and the scrip price rising by 6.37 per cent.
The rest of the turnover leaders were Malek Spinning, AB Bank, Decca Dying and Manufacturing, Titas Gas, Uttara Bank, NBL, Beximco, LankaBangla Finance, and United Airways.
The First Janata Bank Mutual Fund was the day’s biggest gainer, posting a 17 per cent hike in its share price, and Shahjalal Islami Bank was the worst loser.
