DSE hails monetary policy statement

Dhaka bourse on Wednesday witnessed a moderate loss in broad index following price correction witnessed by major sectors.

According to some market operators, the market witnessed correction as many investors adopted wait and see policy to 'observe' the impact of the latest monetary policy statement unveiled by the central bank on Wednesday.

Of the major sectors, bank, financial institutions, pharmaceuticals & chemicals and telecommunication sectors witnessed price correction amid selling pressure.

The turnover, however, increased marginally on the Dhaka Stock Exchange (DSE).

At the end of the session, the DSEX settled at 5884.11 points with a loss of 0.68 per cent or 40.42 points.

Meanwhile, the Dhaka Stock Exchange (DSE) has hailed the monetary policy as the central bank has stressed on bond issues for term financing of corporate sector which is excessively dependent on banks.

"The BB support will definitely help the country's growing capital market to reach a new height," DSE said in a statement.

Besides, the central bank has laid importance on introduction of rules and regulations for alternative crowdfunding to facilitate the funding for small and medium entrepreneurs.

The central bank also said the index movement in the country's the capital market has already become consistent with that of MSCI emerging markets.

"This development will increase the flow of foreign portfolio investments (FPI)," said the governor of the central bank at the programme of unveiling the monetary policy.

Like the previous session, the market opened with positive note on Wednesday and added 18 points within the half an hour of the session.

But the wobbly investors' selling spree wiped out the early gains in later parts of the session, according to International Leasing Securities.

"The risk-averse investors exerted profit booking sell off in large cap sectors, especially in the stocks of bank, financial institutions, pharmaceuticals and telecom which pushed down the broad index," said the International Leasing Securities.

It said many investors also exposed their buying interest on general insurance, food& allied and fuel & power sectors in expectation of better return.

Finally, the DSEX closed the Wednesday's session with a moderate loss.

The shariah based index DSES declined 0.56 per cent or 7.57 points to close at 1324.04 points.

The DS30 index comprising blue chip securities went down by 0.71 per cent or 14.56 points.

Of 344 issues traded, 102 advanced, 213 declined and 29 were unchanged on the premier bourse.

The turnover stood at above Tk 10.24 billion which was 8.33 per cent higher than the turnover of the previous sessions.

Of total turnover, above Tk 754.02 million came from transactions executed in block board.

Of the major sectors which declined, bank lost 1.2 per cent, financial institutions 3.1 per cent, pharmaceuticals & chemicals 1.2 per cent and telecommunication 0.2 per cent.

Of the sectors which witnessed price appreciation, engineering advanced 0.1 per cent, fuel & power 0.2 per cent and general insurance 1.3 per cent.

General insurance sector grabbed 15.2 per cent of the total market turnover followed by bank 15 per cent, textile 12.3 per cent and fuel & power 10.3 per cent.

Premier Bank topped the turnover chart with a value of Tk 400 million followed by United Power Generation and Distribution Company Tk 371 million, Grameenphone Tk 231 million, Beximco Tk 181 million, and Eastland Insurance Company Tk 178 million.

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