Stocks edge up for 3rd day

The indices of Dhaka Stock Exchange (DSE) continued to rise for a third consecutive day yesterday thanks to some investors being slightly upbeat in making purchases. 

The DSEX, the benchmark index of the top bourse in Bangladesh, edged up 4 points, or 0.13 per cent, from that on the preceding day to close at 6,341.

The DS30, the blue-chip index, increased 0.12 per cent to 2,197 while the DSES, the Shariah-compliant index, went up 0.34 per cent to 1,379.

However, turnover, a key indicator of the market, slipped 12 per cent to Tk 750 crore.

Among the major sectors jute, cement and travel and leisure closed in the positive while life insurance, general insurance and IT sectors faced corrections.

Trading in the market is now based on rumours and concentrated mostly on some stocks of companies exhibiting poor performances. There is a scarcity of buyers for stocks of companies staging a good performance, said a stock broker.

Meanwhile, trading is also concentrated to some brokerage houses. As a result, most of the other stock brokers are facing a serious challenging situation to meet their demands, he said.

The market become illiquid due to the floor price and such an illiquid stock market is unique in the world, he said. Due to the absence of buyers, many investors can not sell their shares and it is causing a problem for them, he added.

The floor price is the lowest price at which a share can be sold.

The BSEC set the floor price of every stock at the end of July last year to halt the free fall of the market indices amid global economic uncertainties.

The floor price was determined based on the average of the closing prices on July 28 of the year and the preceding four days.

Of the securities, 80 advanced, 106 declined and 185 did not show any price movement yesterday.

Fu-Wang Foods Limited made the highest gain of 10 per cent.

Lub-rref (Bangladesh) Ltd, Rupali Bank Limited, Olympic Accessories Limited and Khan Brothers PP Woven Bag Limited were among the top gainers.

Progressive Life Insurance Company Ltd lost the most, 9.9 per cent.

Rupali Life Insurance Company Limited, Prime Islami Life Insurance Limited, Meghna Insurance Company Ltd and Shyampur Sugar Mills Ltd were also on the list of those suffering significant losses.

Fu-Wang Foods Limited was the most-traded stock on the day with issues worth Tk 64 crore changing hands.

Delta Life Insurance Company Limited, Square Pharmaceuticals PLC, Lub-rref (Bangladesh) Ltd and Associated Oxygen Ltd also registered significant turnovers.

Caspi, the all-share price index of Chittagong Stock Exchange, gained 13 points, or 0.07 per cent, to close at 18,731.

Of the issues, 69 rose, 60 retreated and 83 did not see any price swing.

Turnover of the port city bourse rose 9 per cent to Tk 15.73 crore.