Dhaka stocks on Tuesday rebounded as some institutional investors moved to halt a continuous plunge in share prices amid the market regulator’s intervention. DSEX, the key index of Dhaka Stock Exchange, soared by 2.24 per cent, or 111.31 points, to close at 5,077.75 points on Tuesday after losing 170 points in the previous three sessions.
The market began to soar from the very beginning of the day and continued with the momentum until the end of the session as the regulator moved to halt the downward trend after a plunge of 167 points in the previous two days, market operators said.
They said that the institutional investors were active throughout the session following their meetings with market regulator Bangladesh Securities and Exchange Commission.
As the index increased sharply, the general investors, who had been in a panic about the market in last few trading sessions, gave a pause in their sell-offs on Tuesday, market operators said.
The media on Tuesday reported that Bangladesh Bank had asked 19 banks to inject funds in the bearish capital market.
The BB move encouraged investors, market operators said.
The BSEC sat with top 20 brokerage houses on Monday and discussed the current market situation. It directed them to find out reasons for the recent plunge.
On Sunday, the commission had formed a committee to look into the role of market intermediaries in bearish market.
The regulator also on Tuesday met with the merchant bankers to find out reasons for the recent fall.
Out of the 353 scrips traded on Tuesday, 327 advanced, 15 declined and nine remained unchanged.
Market operators said that Tuesday’s surge had come with a decreased turnover as many investors still remained on the sidelines to observe the market behaviour.
Turnover on the bourse plunged to Tk 317.06 crore on Tuesday from Tk 464.18 crore in the previous session.
Before Tuesday’s gain, the DSEX had lost 455 points in just 15 trading sessions as investors, who had already been struggling with tax imposition on listed companies, gas price hike and Grameenphone tussle with the BTRC from the first day of July, got panicked after the government moved to wind up crisis-hit People’s Leasing And Financial Services Limited (PLFS).
Market experts said investors lost their trust and confidence in the market regulators due to their failure in governing the market properly.
They said the listing of Coppertech Industries, mired in controversies including data fabrication, exposed the bleak state of the country’s capital market.
They raised question about the regulator’s role in allowing such companies in the capital market.
EBL Securities in its daily market commentary said, ’The capital bourse of the country made a significant turnaround today [Tuesday] with a 111-points increase after a total 164 points decrease in the previous two sessions.’
’Bangladesh Bank has asked banks to invest in the stock market if they have not fully utilised the current investment limit in stock market,’ it said.
The average share prices of all the sectors advanced on the day.
The share prices of textile sector gained 4.76 per cent, non-bank financial institution sector 3.36 per cent, bank sector 1.51 per cent and energy sector 1.44 per cent.
DS30, the blue-chip index of DSE, advanced by 2.17 per cent, or 38.47 points, to close at 1,814.62 points.
DSE Shariah index DSES added 2.24 per cent, or 25.56 points, to close at 1,164.71 points.
Fortune Shoes led the turnover chart with its shares worth Tk 13.32 crore changing hands.
Sinobangla Industries, Square Pharmaceuticals, Doreen Power, United Power Generation Company, Beacon Pharmaceuticals, National Polymer, BRAC Bank, Sea Pearl Beach Resort and Monno Ceramics were the other turnover leaders.
Aziz Pipes gained the most on the day with a 9.96-per cent increase in its share price while Progressive Life Insurance was the worst loser, shedding 9.73 per cent.