Stocks back in black

Stocks gained yesterday after a continuous four-day plunge, as investors started buying shares to take advantage of low prices.
The benchmark general index of Dhaka Stock Exchange (DGEN) achieved 148 points, or 2.44 percent, to close at 6243.52. DGEN had lost a total of 433.57 points in the past four trading sessions.
The selective price index of Chittagong Stock Exchange also achieved 254 points, or 2.3 percent, to close at 11,328 points.
Market insiders said uncertainty about the funds was gone as the Banking Division officials said the Investment Corporation of Bangladesh (ICB) is efficient in fund management.
However, the officials said, following the International Monetary Fund (IMF) concern, the ICB will operate the fund more cautiously.
Earlier, the IMF opposed the Tk 5,000 crore Bangladesh Fund as it could invite moral hazards and pose added risks to its sponsors, including state-owned commercial banks.
Investors went for buying shares as the ICB will submit the fund within this week for approval, said a stockbroker.
Trading volume increased on the day so it proves that investors regained some confidence, he added.
Salahuddin Ahmed Khan, who teaches finance at Dhaka University, said: "The market gained some points as investors wanted to avail themselves of the lower share prices."
The surveillance department of the Securities and Exchange Commission should work properly to find the unusual performances of the low-profile companies, he added.
Akter H Sannamat, a market analyst, said, "It is good for the stockmarket that trading volume has increased.”
Most of the major sector gained yesterday: banks 1.03 percent, fuel and power 3.89 percent and telecoms 3.06 percent.
Of the total 261 issues traded on the day, 239 advanced, 20 declined and two remained unchanged.
The daily turnover on the DSE was stood at Tk 790 crore, up Tk 165.59 crore from the previous day.
Beximco topped the turnover leaders with 12.59 lakh shares worth Tk 39.07 crore traded on DSE.
The other turnover leaders were RN Spinning, Peoples Leasing and Financial Services, Golden Son, Titas Gas, Keya Cosmetics, Bextex, United Airways, Maksons Spinning Mills and National Bank.