Stocks remain afloat

Dhaka stocks inched up on Wednesday after a surge in the previous session as a section of investors kept buying shares amid a number of market-related initiatives taken by the Bangladesh Securities and Exchange Commission while many others went for profit taking.

DSEX, the key index of the Dhaka Stock Exchange, added 0.05 per cent, or 4.19 points, to close at 7,060.77 points on Wednesday after gaining 115.21 points in the previous session.

The DSEX gained 131 points in the last three sessions.

The market went through a rough session with a few ups and downs before finishing the session with a slight gain as investors were active on both sides of the trading fence, market operators said.

They said that a section of investors kept buying shares following several market development-related decisions by the BSEC to increase fund flow on the market.

The BSEC on Tuesday allowed capital market stabilisation fund to lend the Investment Corporation of Bangladesh Tk 100 crore and permitted the CMSF to form a closed-end mutual fund worth Tk 500 crore for investment in the stock market.

On Monday, the BSEC issued a directive scrapping the index-based margin loan facilities and allowed stockbrokers and merchant banks to provide maximum 80 per cent of investors’ deposits as margin loans.

Market operators said that the new directive would increase fund flow on the market.

However, share prices of most of the companies declined on the day as a section of investors went for profit booking after a significant gain in the previous session, they said.

Share prices of BRAC Bank declined on Wednesday after a huge gain in the previous few sessions over the media reports that SoftBank, a Tokyo-based tech company, has decided to acquire 20 per cent shares of bKash, a subsidiary of BRAC Bank.

Besides, share prices of BEXIMCO, Square Pharmaceuticals, Robi and GPH Ispat dropped on Wednesday.

DS30, a composition of 30 large capitalised companies, however, lost 0.29 per cent, or 7.96 points, to close at 2,683.29 points on Wednesday.

Of the 373 scrips traded on the DSE on Wednesday, 177 declined, 152 advanced and 37 remained unchanged.

Share prices of ACME Pesticides Limited, which made its debut on Sunday, soared by the maximum limit allowed on the fourth day on Wednesday.

The market has remained volatile since September 9 due to a host of reasons, including a tussle between the Bangladesh Bank and the BSEC over issues related to the stock market, continued sales by foreign investors and an abnormal surge in share prices of many fundamentally-weak companies, market operators said.

Turnover on the DSE increased to Tk 1,507.02 crore on Wednesday from Tk 1,491.85 crore in the previous session.

Shariah index DSES also declined by 0.04 per cent, or 0.67 points, to settle at 1,484.14 points.

DSMEX Index, an index of the SME platform, declined by 0.05 per cent, or 0.56 points, to close at 1,024.16 points on Wednesday.

IFIC Bank led the turnover chart with shares worth Tk 120.4 crore changing hands on the day.

BEXIMCO, Delta Life Insurance, Orion Pharma, NRB Commercial Bank, Fortune Shoes, Genex Infosys, BRAC Bank, Mercantile Bank and Kattali Textiles were the other turnover leaders on the day.

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