BUSINESS

Stocks swing to the black in choppy trade

Investors take to the streets to protest a huge fall in early trading on the Dhaka Stock Exchange in Motijheel in the capital yesterday. The benchmark index closed higher later in the day. Photo: STARStar Business Report

Stocks bounced back yesterday, breaking a losing streak of seven days, on the back of a buying pressure from institutional investors.

DGEN, the main gauge of the Dhaka Stock Exchange, dropped around 150 points by midday, only to recover enough to pull the index back in the black by the close of the trading session.

The price-earnings ratio fell below 13 -- meaning it was a good time to buy -- which persuaded institutional investors to get in the act, market insiders said.

The DGEN eventually finished with 4,077 points, after gaining 88 points from the previous day.

IDLC, City Brokerage, ICB Securities, Salta Capital and NCCB Securities topped the list of net buy, their figures being Tk 8.75 crore, Tk 6.32 crore, Tk 4.12 crore, Tk 3.56 crore and Tk 1.84 crore respectively.

“Opportunist investors, who have reduced their portfolio exposure earlier and waited for favourable conditions, became active as prices looked rewarding for most of the investment grade stocks,” IDLC Investments Ltd said.

The merchant bank's Managing Director Md Moniruzzaman said an investment opportunity was created when the market fell below the 4,000-level, which, the investors grabbed with both hands.

Akter Hossain Sannamat, managing director and chief executive officer of Union Capital, said investors' low confidence led the market to fluctuate dramatically.

The market made a dramatic u-turn, thanks to the institutional investors, said Sannamat.

“They went on a buying spree as most of the good stocks became lucrative for long-term investments.”

He asked institutional investors to continue to be active in the market as it will enhance the confidence of small investors.

He also urged the government to take stockmarket-friendly actions to increase the flow of money.

Turnover, volume and trade were up by 8.81 percent, 12.51 percent and 18.31 percent respectively.

A total of 5.1 crore shares were traded, generating a turnover of Tk 201 crore.

On the DSE, 228 shares gained, 28 declined and 10 remained unchanged.

Source : The daily star

Govt urged to bust market syndicate in Ramadan

Economists, business and consumer rights leaders on Monday demanded that the government should take proper steps to crack down syndicates to keep the prices of essential commodities within the purchasing capacity of consumers in the month of Ramadan.
At a dialogue with commerce minister GM Quader, they also suggested the government to strengthen Trading Corporation of Bangladesh for making it capable to intervene into the market to keep it stable.
Private satellite channel Desh TV and Prime Bank Ltd jointly orssociation of Bangladesh, said, ‘Consumers are helpless and no one listens to them.’
‘The prices of essential commodities have increased abnormally ahead of Ramadan. So, the government should take steps to bring down the prices to the level of consumers’ purchasing capacity,’ he said.
He also emphasised on forming a strong, powerful and independent commission soon to implement competition law to ensure a healthy competition in business practices by breaking cartels and syndicates.
Federation of Bangladesh Chambers of Commerce of Industry president AK Azad suggested strengthening monitoring system and consumers’ awareness to protect their rights.
Manusher Jonno Foundation executive director Shaheen Anam said that the prices had alre come down in the coming days as the government would make several interventions to keep the prices within the purchasing capacity of consumers.
‘We have already opened import of eggs for all and imposed restriction on export of green chilli, onion, garlic and aubergine to bring the soaring prices down in Ramadan,’ he said.
He said that though the consumers were suffering because of exorbitant prices of commodities ahead of Ramadan, they would start to get benefits of the government’s interventions in coming days.
Quazi Faruque, president of the Consumers Association of Bangladesh, said, ‘Consumers are helpless and no one listens to them.’
‘The prices of essential commodities have increased abnormally ahead of Ramadan. So, the government should take steps to bring down the prices to the level of consumers’ purchasing capacity,’ he said.
He also emphasised on forming a strong, powerful and independent commission soon to implement competition law to ensure a healthy competition in business practices by breaking cartels and syndicates.
Federation of Bangladesh Chambers of Commerce of Industry president AK Azad suggested strengthening monitoring system and consumers’ awareness to protect their rights.
Manusher Jonno Foundation executive director Shaheen Anam said that the prices had already increased by 40 per cent though the government declared that businessmen could not make profit more than 10 per cent.
Former adviser to the caretaker government M Hafizuddin Khan, Bangladesh Krishi Bank chairman Khondkar Ibrahim Khaled and Nijera Kori coordinator Khushi Kabir, spoke, among others.
TCB chairman Sarwar Jahan Talukder, Bangladesh Tariff Commission chairman Mozibur Rahman and National Consumer Rights Protection Directorate director general Abul Hossain Mia were present.
Desh TV managing director Asaduzzaman Noor moderated the programme.

Source: The New Age