Stocks end 2019 on a positive note
Dhaka stocks have been ending in the green for the past three consecutive days as some investors started to purchase lucrative stocks on their prices plummeting in the last couple of months.
The DSEX, the premier bourse’s benchmark index, rose 18.98 points, or 0.42 percent, to close at 4,452.93.
Market insiders said most of the blue-chip stocks plunged to three to four-year lows recently with the market slide.
So some investors bought stocks of those companies at low prices which ultimately had a positive impact on the index, they added.
A broker said stock prices of some high-performing companies became very low for which smart investors were going for those.
He said some blue chip companies’ price-earnings ratio was now under 10 and the rule of thumb was that lower the ratio, that is below 15, lower the risk.
So investments in these stocks are a safe bet, despite the risk of further fall, as they provide high dividends every year, the stock broker added.
A merchant banker said the stock market’s fall created the scope for investors to make a fresh start with these stocks.
However, most of the investors do not have enough money while others are fearful of a further fall.
Meanwhile, Dhaka Stock Exchange (DSE) informed stock investors that trading would be closed today for it being a bank holiday.
Turnover, another important indicator of the DSE, surged 6.1 percent to Tk 318.99 crore yesterday. Of the traded issues, 154 advanced, 142 declined and 59 closed unchanged on the premier bourse.
Khulna Power Company dominated the chart with a turnover of Tk 13.56 crore followed by Brac Bank, National Life Insurance, Beacon Pharmaceuticals and Square Pharmaceuticals.
Pragati Insurance was the day’s best performer with a 9.85 percent gain whereas Al-Haj Textile was the worst loser shedding 9.88 percent.
Among the major sectors, textiles increased 0.75 percent in market capitalisation followed by banks (0.70 percent) and non-bank financial institutions (0.36 percent).
The benchmark index of the Chittagong Stock Exchange -- the CSCX -- also rose. It went up 11.19 points, or 0.13 percent, to finish the day at 8,187.91.
Losers beat gainers as 107 issues declined, 84 advanced and 39 finished unchanged on the port city bourse, which traded shares and mutual fund units worth Tk 18.77 crore.
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