Dhaka stocks gained on Tuesday riding on shares with ‘sound fundamentals’ as the Securities and Exchange Commission clamped down further on junk and non-fundamental shares.
‘Buying pressure of shares with sound fundamentals like banking, non-banking financial and insurance issues, pulled the market on the day as the commission tightened its move on non-fundamental shares,’ said a stock broker.
Besides, a huge jump in prices of mutual funds fuelled by the High Court verdict that declared illegal a SEC decision on not allowing AIMS first mutual fund to issue stock dividend and rights offers also helped the DSE rise for the 10th consecutive days, he said.
The benchmark general index of the Dhaka Stock Exchange advanced by 64.80 points, or 0.90 per cent, to close at 7,327.31 points.
The turnover stood at Tk 2,197.29 crore, down by Tk 339.25 crore from the previous trading day.
Of the total 253 issues traded on the day, 97 advanced, 141 declined and five remained unchanged.
Market operators said that the SEC decision taken on Monday for sending securities which had been in Z category for the last two years to over-the-counter market, a platform for junk share trading, encouraged investors to go for shares with good fundamentals like earning per share and net asset value.
The commission on Tuesday ordered sending of four junk issues to the OTC market with effect from October 20.
Prices of shares of the four companies fell heavily.
Mohammed Nasir Uddin Chowdhury, senior vice-president of DSE, said that the market was positive on Tuesday as investors bought fundamental shares.
‘Prices of most of the issues, however, declined on the day. It’s a price correction for current market situation as the investors bought banking and insurance shares and offloaded non-fundamental issues,’ he added.
Capital market analyst, Salahuddin Ahmed Khan, said investors went for good shares as they wanted security.
‘The volatile market needs more fundamental shares, so the SEC and asset management companied should work properly to increase supply of such shares on the market,’ he added.
Peoples Leasing and Financial Services topped the turnover leaders with 45.33 lakh shares valued Tk 102.50 crore traded on the day.
The other turnover leaders were The Premier Bank, Jamuna Bank, BSRM Steels, Square Pharmaceuticals, Prime Finance and Investment, Beximco, BATBC, EXIM Bank and Golden Son.
Aims First Mutual Fund was the day’s biggest gainer posting a rise of 19.97 per cent while Monno Fabrics was the leading losers of the day.
