DSEX falls despite a bright day for mutual funds

In a rare instance, all 37 listed mutual funds rose at the Dhaka Stock Exchange yesterday although the benchmark index of the premier bourse fell.

Phoenix Finance First Mutual Fund topped the gainers' list with a 10 per cent rise. The unit price of all mutual funds rose more than 5 per cent on the day.

SEML Lecture Mutual Fund, SEML IBBL Shariah Fund, First Prime Finance Mutual Fund, CAPM BDBL Mutual Fund, CAPM IBBL Mutual Fund, Asian Tiger Sandhani Life Growth Fund, and NLI First Mutual Fund also made it to the gainers' list.

The DSEX dropped 15.94 points, or 0.32 per cent to end the day at 4,883.69.

Most of the mutual funds traded at a discount, so investors go after the sector, said a merchant banker.

When a mutual fund unit is sold at a price lower than its net asset value, then it is considered a discount.

"Our mutual fund sector lagged behind due to their low performance," said the merchant banker.

The present commission of the stock market regulator has announced that it will bring discipline to the sector, he said.

"This announcement fuelled the stock investors' confidence in the sector."

Recently, the chairman of the Bangladesh Securities and Exchange Commission asked investors to put money in the mutual funds.

"If the mutual fund sector runs properly, the sector will have a huge potential. So, we are investing in the sector," said Abdullah Koraishi, a stock investor.

"We hope the sector will provide good dividends in the coming years," he added.

Turnover, one of the important indicators of the stock market, hit Tk 975 crore yesterday, up from Tk 925 crore on the previous trading day.

Beximco Pharmaceuticals was the most traded stock with shares worth Tk 112 crore changing hands, followed by Beximco Ltd, Trust Bank First Mutual Fund, Eastern Insurance and Brac Bank.

Of the total 353 companies traded, 79 advanced, 186 declined and 88 remained unchanged.

Bangladesh Shipping Corporation shed the most with a 9.93 per cent fall followed by Global Insurance, Bangladesh National Insurance, Agrani Insurance and Shyampur Sugar.

Yesterday, the stock market watchdog approved the draft prospectus of Candlestone Rupali Bank Growth Fund.

The fund size is Tk 100 crore and sponsors will invest Tk 15 crore. The face value of the fund is Tk 10.

Candlestone Investments Partners is the asset manager of the fund and the Investment Corporation of Bangladesh and Brac Bank will be its trustee and custodian respectively.