Dhaka stocks recover from Sunday's plunge

News Source: http://bit.ly/bVd4JB

Dhaka stocks after suffering the second biggest single-day decline in the previous session returned Monday to their gaining streak. 

The market opened positively with initial bumps and the momentum continued until the end. Panic among investors that prevailed in the previous day eased, with funds flowing like before, said dealers. 

The benchmark DSE General Index (DGEN) surged by 1.42 per cent or 103.89 points to close at 7396.43, lifted by heavyweight Grameenphone (GP) that rose more than four per cent. 

The broader All Shares Price Index (DSI) shot up by 1.37 per cent or 83.34 points to 6150.83. The DSE-20 Index, comprising blue chips, was up by 1.39 per cent or 60.08 points to 4374.42.

Institutional investors were more active than the retailers in buying stocks, sources in the bourse said.

Prices of around 80 per cent issues closed positive, as out of the 245 securities traded, 189 gained, 49 advanced, and seven remained unchanged. Turnover in terms of value fell by 18 per cent to Tk 15.64 billion.

Suspension of netting facilities has come into effect from Sunday after the Supreme Court (SC) vacated the High Court's stay order on the Securities and Exchange Commission's (SEC) directive, causing lower volume of trade. 

"Fund poured in like previous three weeks, helping the market to bounce back," said Ahmad Rashid, managing director of Rashid Investment Services Ltd. 

He said trigger sale in line with the SEC's directive was yet to take place, as the directive has come into effect after expiry of the loan adjustment period (September 30) due to the SC's vacation of the stay-order of the High Court Sunday (October 10). 

A merchant banker said, "Some of us have already cut down credit lower than the regulator's order." 

All the sectors advanced, except bank, which was marginally down by 0.13 per cent.

Telecommunications emerged as the top gaining sector, as GP, the lone listed company of the sector, soared 4.09 per cent. 

Insurance sector was up by 3.30 per cent, followed by NBFIs 2.95 per cent, and fuel and power 2.0 per cent.

Premier Bank continued as the top turnover leader with shares worth Tk 668.04 million changing hands. Other turnover leaders were Peoples Leasing, Uttara Bank, Summit Power, Standard Bank, Shahjalal Bank, Lanka Bangla Finance, Social Investment Bank, Beximco Ltd and Exim Bank.

Uttara Finance gained the highest 9.02 per cent, followed by BGIC, BD Finance, Sonargaon Textile, Peoples Leasing, Continental Insurance, Agrani Insurance, Meghna Life Insurance, First BSRS Mutual Fund and Central Insurance.

On the other hand, DBH First Mutual Fund, Kohinoor Chemicals, Libra Infusion, BSC, Style Craft, Monno Fabrics, Pharma Aids, Fu-Wang Ceramics, Ambee Pharma and First Security Bank were the leading losers.