Blue chips turn market around after nine days

Stocks rebounded on Monday snapping a nine-day losing streak, as a majority of the blue-chip stocks experienced appreciation.
At the end of the session, the DSEX settled at 5310.51 points after a rise of 1.13 per cent or 59.66 points.
Buoyed by investors' increased participation, the DSE saw a 57 per cent rise in turnover to Tk 5.06 billion on Monday from the day before.
In the preceding nine sessions, most of the blue chips experienced correction, taking the market on a downward spiral. As a result, DSEX, the broad index of the Dhaka Stock Exchange (DSE), lost 446 points in the nine days.
Market operators said a recent meeting where the prime minister assured market stakeholders of supportive measures played as a catalyst to drive stocks up.
Asked about the Saturday's meeting, former president of the DSE Brokers Association of Bangladesh Richard D' Rozario said they had told the prime minister that there was no alternative to the capital market for fund mobilisation to facilitate expected growth of the public and private sectors.
In other countries, multinational companies (MNCs) have to share profits with citizens but many MNCs are making profits here without sharing profits, Mr Rozario said as having told the meeting.
Of the Monday's top 10 index movers, nine were blue chip stocks that added 24.1 points to the DSEX.
Of the companies, Beximco Pharmaceuticals solely contributed 6.3 points' rise following a stock price appreciation of 4.12 per cent. The share price of the company had declined 10 per cent in the previous five consecutive sessions.
Of the 30 blue chip stocks having significant influence on the broad index, 23 advanced, two declined and five remained unchanged.
Consequently, the DS30 index comprising blue chip stocks advanced 0.63 per cent or 11.93 points to close at 1900 points.
The market opened the day's session with a positive note but soon it started to slide as was the case in the previous sessions.
But after an hour of the Monday's trading, a recovery stance was observed that persisted until the day's closing.
Mr Rozario said he had urged PM Sheikh Hasina to take steps for mandatory listing of MNCs along with forming a coordination committee to utilise untapped opportunities of the capital market.
He said the PM had instructed people concerned to form a coordination committee to begin necessary steps for the market's development.
While speaking on the trend of the market, the operators said the newly-introduced 3 per cent daily correction limit of stocks was one of the reasons behind the market fall.
"Investors feel uncomfortable with any restriction," said DBA President Saiful Islam.
He said the market experienced trigger sales in margin accounts amid a falling trend as investors feared further losses.
On April 24, the Bangladesh Securities and Exchange Commission (BSEC) reduced the lower limit of the circuit breaker to 3 per cent from 10 per cent for all listed securities to stop free fall of the market.
The move failed to contain losses and resulted in a correction of 383 points until Sunday.
Managing Director of Prime Bank Securities Md. Moniruzzaman said many investors sold holdings and then purchased shares with sale proceeds. They did so to avoid possible losses in their portfolios.

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