Dhaka stocks finished up in volatile trading on Tuesday after a fall in the previous day as institutional buying in the late trading pulled up the prices of the stocks, market operators said.
The benchmark general index of Dhaka Stock Exchange, or DGEN, gained 40.81 points, or 0.66 per cent, to close at 6,165.26 points on Tuesday. The index had lost 33.06 points in the previous day after a five-day bull run.
Turnover of the bourse, however, dropped to Tk 875.60 crore from Tk 881.77 crore in the previous day.
A DSE stockbroker said a section of investors sold shares in the opening hour of the day's trading as they booked profits. Institutional buying in the late trading pulled the stocks prices, he said.
Turnover dropped in the last two trading days because of a decreased participation of institutional investors, he added.
Stock market analysts said investors in the past few weeks were in an optimistic mood following a number of moves taken by the government and the Bangladesh Bank.
Before Monday's fall, the DGEN had gained 223 points in the previous five trading days as the investors became active in trading and went for a buying binge following the government decision of allowing investment of undisclosed money in the capital market by paying 10 per cent tax.
The National Board of Revenue on Tuesday said the investors must keep the undisclosed money invested in stocks till June 2013 to avail the opportunity.
Bangladesh Bank's move of extending time for banks to limit their over exposure in the capital market and reassessing the credit-deposit ratio on source fund also brought back institutional inventors on the trading floor, the analysts said.
Akter H Sannamat, a capital market analyst, said, 'Tuesday's trading pattern was positive as it showed that the market was getting support when needed.'
'The market saw a selling pressure in the opening hour, but some institutional buying in the late trading helped it to finish in the black,' he said.
Asked about the NBR's provision concerning investment of undisclosed money in shares, Sannamat said, 'It is a good move by the government to ensure long term investment in the market.'
Of the 257 issues traded on the day, 175 advanced, 68 declined, and 14 remained unchanged.
United Commercial Bank topped the turnover leaders with Tk 28.21 crore. The other turnover leaders were Shajalal Islami Bank, City Bank, MI Cements, Beximco, National Bank, Islami Bank, Malek Spinning Mills, United Commercial Bank, and United Airways.
Source : New Age
