Dhaka stocks advanced for the third trading session on Thursday as investors became active in anticipation of another bubble at the capital market as the Awami League-led alliance is going to form government for another term, market operators said. They said the outgoing government run by AL-led alliance saw abnormal share price hike in early years of its five-year tenure that made investors optimistic that the market might increase in the coming days.
Anticipating another 2010-like surge, investors increased their participation on the trading floor, they said.
In 2009-2010, DGEN, the old benchmark general index of Dhaka Stock Exchange, increased abnormally after the formation of AL-led government. The same thing happened in 1996. On both occasions, the bubble burst.
On Thursday, the benchmark general index of the DSE, DSEX, increased to 4,407.82 points, adding 0.97 per cent or 16.55 points.
DS30, the blue-chip index of the bourse, advanced by 0.78 per cent, or 12.13 points, to finish at 1,555.60 points.
The DSEX and the DS30 increased 111.48 points and 49.57 points respectively in the last three trading sessions after the 10th general elections.
‘There are chances of such unusual hike in share prices or bubble at the capital market in the coming days as same market players remain active. But the Bangladesh Securities and Exchange Commission should be alert to prevent any short of unsustainable hike or wrongdoing,’ Mirza Azizul Islam, a former caretaker government adviser, told New Age.
Mirza Aziz, also a former BSEC chairman, said that it was observed that some small capitalised companies’ shares were increasing abnormally in recent time.
Investors should invest in stocks considering fundamentals of the companies, he said.
On Thursday, the turnover of the DSE declined to Tk 517.58 crore from Tk 539.70 in the previous trading session.
Of the 290 shares and mutual funds traded on the day, 167 advanced, 85 declined and 38 remained unchanged.
Golden Son led the turnover leaders with its shares worth Tk 20.69 crore changing hands.
Paramount Textile gained the most with a 6.37-per cent rise in its share price, while Modern Dying and Screen Printing lost the most, shedding 7.60 per cent.
-With New Age input
