Dhaka stocks rise for third day03 October 2022
Business Desk :
Dhaka stocks increased for the third day on Sunday as a section of investors continued buying shares while many others were worried about the current market trend.
DSEX, the key index of the Dhaka Stock Exchange, added 0.28 per cent, or 18.7 points, to close at 6,531.58 points on Sunday.
The DSEX shed 42.54 points in the past three sessions.
The market went through choppy session on Sunday, but finished the session in the positive trajectory as some investors continued buying shares while many others remained cautious on the trading floor, market operators said.
There was a mixed reaction over the Bangladesh Bank's decision to raise repurchase agreement rate, they said.
The Bangladesh Bank on September 29 raised its key policy rate or REPO by 25 basis points to 5.75 per cent in a bid to tackle inflationary pressure and revive stability on the foreign exchange market.
Many investors were worried as share prices of more than 180 remained stuck at their floor prices on Sunday, the market operators said.
The Bangladesh Securities and Exchange Commission on July 28 imposed floor prices on all companies to prevent share prices of the companies from falling beyond a certain level.
Out of the 371 issues traded on Sunday, 81 declined, 115 advanced and 177 remained unchanged on the DSE.
A huge amount of funds has got stuck due the floor price system as investors could not make an exit from the companies, the market operators said.
In recent months, the economy has been grappling with various issues, including inflation, volatile foreign exchange market, depleting reserve, record trade deficit and high external debt concerns.
EBL Securities in its daily market commentary said that the market opened higher and remained positive throughout the session, with investors being active on both sides of the trading fence, while late-hour selling pressure wiped out some of the early gains as investors opted to reshuffle their portfolios.
Moreover, the recent increase in repo rate by the Bangladesh Bank provided a slight indication of interest rate adjustments in foreseeable future that somewhat influenced the investors' psychology, it said.
The turnover on the DSE increased to Tk 1,533.4 crore on Sunday compared with that of Tk 1,216.95 crore in the previous session.
The DSE Shariah index increased by 3.82 points to close at 1,423.55 points and the DS30 index added 3.4 points to finish at 2,333.82 points.
Orion Pharma topped the turnover chart with its shares worth Tk 121.48 crore changing hands.
BEXIMCO, Eastern Housing, JMI Hospital, Bangladesh Building System, Coppertech Industries, Shinepukur Ceramics, BBS Cables, Intraco Refueling Station and Bashundhara Paper Mills were the other turnover leaders. International Leasing and Financial Services was the day's best performer, posting a gain of 10 per cent, while Sea Pearl Beach Resort & Spa Limited was the worst loser, shedding 7.12 per cent.