FE Report
Dhaka stocks rebounded Thursday, clawing back heavy losses in the previous session on securities regulator's latest move to restrict credit facilities.
Volume of share transaction dipped as selling pressure eased anticipating entry of undisclosed money in the market combined with cautious stance taken by the investors.
The benchmark DSE General Index (DGEN) closed at 6299.73, up by 0.79 per cent or 49.82 points, lifted by Grameenphone, banks and energy issues.
The broader All Shares Price Index (DSI) rose 0.88 per cent or 45.59 points to 5210.36. The DSE 20 index comprising the blue chip shares ended at 3668.71 with a gain of 0.66 per cent or 24.11 points.
"Easing of selling pressure and moderate buying helped the market to pull back," said Abdual Awal, managing director of the Multi Securities and Services Limited.
Undisclosed money holders might whiten their money by investing in stock market at the fag end of the current fiscal year on June 30, as the government did not allow such opportunity in the next fiscal year, he said.
"This anticipation cheered the investors' sentiment up," he said.
Turnover suffered heavily, plunging 32 per cent to Tk 16.9 billion, following Wednesday's all-time high.
"Investors maintained cautious stance in the wake of securities regulator's lowering price-earning (P/E) ratio to cool down the market, leading the turnover to fall sharply," said Awal.
Securities and Exchange Commission (SEC), in a directive issued Tuesday, ordered merchant bankers and stockbrokers not to provide any credit facilities to their clients to purchase the equity securities with P/E ratio of above 40 until further order. The directive will be effective from Sunday.
Grameenphone, the country's telecom giant and lone listed company in telecommunications sector, rallied 3.24 per cent after six consecutive sessions of losses.
Banking sector continued to flex muscle for the second straight session as most of the companies edged higher. The biggest gainer among banking issues was United Commercial Bank Limited, spiking 10 per cent.
Other major sectors -- leasing or non-banking financial institutions, mutual funds, pharmaceuticals and cement -- closed negative.
After closing lower, fuel and power sector was back on track riding on Khulna Power Company Limited and Titas Gas rose 2.8 per cent and 1.7 per cent respectively. But most of the other large market capitalisation companies finished lower.
Beximco Ltd, the flagship company of the country's largest industrial conglomerate, topped the turnover list with shares worth Tk 1.38 billion changing hands after the company made a deal to purchase 10 million shares of Tk 10.00 each at a premium of Tk 150.00 each totaling Tk 1.60 billion of Unique Hotel and Resorts Limited, the owner of The Westin, Dhaka.
Titas Gas, IFIC Bank, AB Bank, Shahjalal Bank, Islami Bank, Power Grid, LankaBangla Finance and City Bank were the other turnover leaders.
Newly listed RAK Ceramic --a Bangladesh and UAE joint venture --was the largest gainer registering a rise of 10.64 per cent.
It was followed by Rahima Food, Maksons Spinning, Bank Asia, Confidence Cement, Islami Bank and Prgati Life Insurance.
The major losers included Modern Industries, Reckit Benckiser, First Security Bank, Monno Stafflers, Legacy Footwear, Meghna Pet, Rahima Textile and Meghna Cement.
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