Stocks rise on some institutional investors’ year-end buy

December 31, 2014

Dhaka stocks advanced for the second trading session on Tuesday with increased turnover amid institutional investors’ active participation on the trading floor due to year end portfolio rebalancing. The key index of Dhaka Stock Exchange, DSEX, finished at 4,864.96 points, adding 1.05 per cent or 50.80 points. Market operators said that Tuesday’s market was mostly driven by some of the institutional investors due to year end portfolio rebalancing by the entities, stockbrokers said.
Besides, as no fresh programme was declared after the countrywide shutdown on Monday by BNP which might have made investors optimistic about the market prospect, they said.
Panic driven share sell-offs were almost absent on the day following Monday’s relatively peaceful countrywide strike, said brokers.
Investors were also expecting that the political situation might improve within a couple of trading sessions, they said.
DSE’s proposal to the Bangladesh Securities and Exchange Commission to allow single scrip netting also made investors hopeful of increased participation, stockbrokers said.
DS30, the blue-chip index of DSE, rose by 1.26 per cent to close at 1,803.05 points.
The Shariah index of the bourse, DSES, increased by 1.17 per cent, or 13.38 points, to close at 1,150.22 points.
Turnover of the bourse increased to Tk 265.40 crore on the day compared with that of Tk 189.58 crore in the previous trading session.
Of the 309 shares and mutual funds traded on the day, 228 advanced, 52 declined and 29 remained unchanged.
‘Since the trading will remain halted tomorrow due to bank holiday, investors rushed to year-end portfolio re-balancing amid lucrative prices,’ IDLC Investments said in its daily market commentary.
MJL Bangladesh led the turnover chart on the day as its shares worth Tk 10.76 crore changed hands.
Beximco Pharma, Grameenphone, Lafarge Surma Cement, IDLC Finance, DESCO, Square Pharma, Sammit Alliance Port, ACI Limited and Active Fine Chemicals were among other turnover leaders.
Al-Haj Textile gained the most as its share prices rose by 10 per cent, while Safko Spinnings was the worst loser of the day shedding 8.85 per cent.
Meanwhile, a DSE web post on the day said that trading of the bourse will remain closed on Wednesday due to year ending bank holiday.

-Input from New Age

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