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MFs see investors' increased participation

FE Report | July 10, 2019 00:00:00

Listed mutual funds have been witnessing investors' increased participations amid the continuous price corrections witnessed by other major sectors.

The market insiders said investors' participations are increasing in the mutual funds amid expectation over some possible reforms in the sector.

The market opened the Tuesday's session with a negative note and the broad index of the Dhaka Stock Exchange (DSE) continued the declining trend for an hour.

After a recovery stance observed during mid session, the DSE broad index DSEX declined till closure extending the losing streak for third consecutive session.

At the end of the session, the DSE broad index DSEX closed at 5280.04 points with a loss of 0.72 per cent or 38.57 points.

The shariah based index DSES declined 0.71 per cent or 8.72 points to close at 1207.49 points.

The DS30 index comprising blue chip securities went down by 0.56 per cent or 10.64 points to close at 1875.52 points.

Amid continuous corrections of major sectors, investors' participations are increasing in the listed mutual funds.

A fund manager said the mutual funds which earlier repeatedly issued stock dividend (Re-investment Unit) are witnessing price hikes over the expectation of issuing cash dividend.

"The pending reforms should be implemented to restore investors' confidence in the mutual funds. Unit holders are not benefited following the extension of the tenures of the mutual funds," the fund manager said.

On Tuesday, investors' participation was mostly concentrated on the mutual fund sector which witnessed the highest price appreciation of 5.10 per cent.

Of the large cap companies, the share price of the Grameenphone declined playing a role behind the decline of the broad index.

Meanwhile, the Grameenphone has informed that its board meeting will be held on July 14 to consider, among others, un-audited financial statements for the second quarter (Q2) period ended on June 30, 2019.

The majority number of listed securities lost prices on Tuesday following investors' selling pressure, according to market operators.

Of total issues traded, 86 advanced, 242 declined and 24 were unchanged on the premier bourse DSE.

The turnover stood at above Tk 5.12 billion which was 20.79 per cent higher than the turnover of the previous session.

"The shaky investors started the session with early-hour sell pressure and there was no sign of intraday major reversal which led the benchmark index to close around 5,280 points," said a market review of International Leasing Securities.

Of the major sectors which witnessed correction, bank declined 0.3 per cent, engineering 1.4 per cent, fuel & power 0.2 per cent, pharmaceuticals & chemicals 0.6 per cent, telecommunication 1.2 per cent and textile 1.4 per cent.

Of the sectors which advanced, mutual funds and financial institutions rose 5.1 per cent and 0.3 per cent respectively.

Following investors' increased participation, mutual fund sector grabbed 13.70 per cent of the market turnover followed by pharmaceuticals & chemicals 13.60 per cent, general insurance 12.90 per cent, engineering 12.4 per cent, and textile 10.20 per cent.

Runner Automobiles topped the turnover chart with a value of Tk 189.75 million followed by Asian Tiger Sandhani Life Growth Fund, National Life Insurance Company and United Power Generation & Distribution Company.

EXIM Bank 1st Mutual Fund was the number one gainer with a rise of 10 per cent or Tk 0.60 to close at Tk 6.60 per unit.

Peoples Leasing and Financial Services was the worst loser after declining 10 per cent or Tk 0.40 to close at Tk 3.60 each.

All indices declined moderately on the Chittagong Stock Exchange (CSE) following investors' cautious stance.

The benchmark index CASPI shed 0.55 per cent or 90.25 points to close at 16200.27 points.

Of 276 issues traded, 74 advanced, 181 declined and 21 were unchanged.

And the turnover stood at above Tk 195.10 million on the port city bourse CSE.

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