Stocks remained volatile with their limited gains yesterday due to the continuous political upheaval in the country.
The benchmark DSEX managed to settle at 4,802, inching around 14 points or 0.3% higher, extending slow pace of rally over the last one week.
The Shariah index DSES inched 8 points or 0.7% higher to 1,136. The blue chip comprising DS30 index was up 10 points or 0.6% to 1,788.
Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, closed at 8,931 with a rise of 33 points.
Political uncertainty is a vital trigger for the market in these days, as some moderate corporate earnings results even failed to generate buying mood, dealers say.
“Lower volume of trade also reflected that investors were still unconvinced over the market’s stability amid lingering political conflict that battered businesses and normal life of the people,” said a leading broker.
Total turnover at the Dhaka Stock Exchange was Tk250 crore only, down 8% over the previous session.
The market’s marginal gain was led by telecommunication that rose highest more than 2%, followed by pharmaceuticals 1.98% and power 1%. Non-banking financial and engineering institutions edged higher. Food & allied suffered most slumping 1.5%.
The day’s marginal gain was limited by the fall of heavyweight banking and cement issues.
Shahjibazar Power Company was the leading gainer with 10% rise, defying the fact that the company was under regulatory lens since November last year due to its abnormal price hike.
In an effort to check its share prices from climbing up, the Bangladesh Securities and Exchange Commission has sent it to the spot market. The power generation company also remained the most attractive issues, making it top turnover leader with shares worth Tk13.2 crore changing hands.
Lanka Bangla Securities said corporate earnings with moderate quarterly growth supported the market on the day. “Though, it is at the stage of mid-term lull to watch the political situation in future,” it said.
IDLC Investments said market failed to break out of slothfulness as the real economy became stagnant due to prevailing political deadlock and resulting country-wide blocked.
“Investors were losing hope and tried to re-assess their position, consequently turnover dropped.”
