Stocks edge higher as GP keeps gaining

Stocks posted a moderate gain on Sunday as some investors continued to show their appetite on selective large-cap shares.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 20.78 points or 0.41 per cent over the previous session to close at 5,033.

The investors were active from the beginning of the session and had buying appetite throughout the session amid modest volatility in the mid-session.

Market analysts said the recent price correction tempted the bargain hunters to take position on the lucrative price level in large-cap stocks, particularly on telecom, banking and financial institutions.

Five most contributors are Grameenphone, Renata, Bangladesh Submarine Cable, Shahjalal Bank and GlaxoSmithKline, jointly contributed 14 points gain in index.

Grameenphone, the largest company in terms of market cap, gained 1.25 per cent to close at Tk 299.20 on Sunday after recent correction, despite growing concern stemming from a row between the telecom regulator and the GP over claims of unpaid dues.

The ongoing dispute between BTRC and GP took a new turn as the telecom regulator on Thursday issued show-cause notice on GP, asking the mobile operator to explain why their 2G and 3G licences would not be revoked for non-payment of audit claims and asked response within 30 days.

Terming the notice unjustified, the GP said through a web posting on Sunday, that yet another step by the regulator to refuse their invitation to seek and amicable solution related to a disputed audit claims.

The GP also informed that the management will take necessary measures to protect the rights of the company, shareholders and customers against unwarranted actions by the regulator.

Some institutional investors were also active in the market as the securities regulator informally requested them to support the market, said a leading broker, seeking anonymity.

Two other indices also edged higher. The DS30 index, comprising blue chips, advanced 8.55 points to finish at 1,766 and the DSE Shariah Index rose 4.41 points to close at Tk 1,171.

Turnover, a crucial indicator of the market, however, fell to Tk 3.71 billion, which was 13 per cent lower than the previous day's Tk 4.27 billion.

According to EBL Securities, the low turnover indicates that the investors are not yet confident enough to invest in the market.

International Leasing Securities said the bargain hunters showed their buying appetite on telecom and financial sector issues, taking the market in the green territory.

Accordingly, telecommunication booked the highest gain of 1.47 per cent, followed by non-bank financial institutions with 0.96 per cent, banking 0.89 per cent, pharmaceuticals 0.46 per cent, engineering 0.37 and power 0.17 per cent.

Only food & allied sector gained slightly by 0.20 per cent.

The port city's bourse, the Chittagong Stock Exchange, also ended marginally higher with its All Shares Price Index (CASPI)-gaining 28 points to close at 15,292 and the Selective Categories Index - CSCX - advancing 17 points to finish at 9,284.

The losers beat the gainers as 113 issues closed lower, 100 ended higher and 38 remained unchanged on the CSE.

The port city's bourse traded 5.10 million shares and mutual fund units worth nearly Tk 137 million in turnover.

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