Grameenphone saves ailing stock market

Stocks took a nosedive amid profit-taking on Sunday but indices were saved, thanks to a sharp price rally in Grameenphone shares.

The market could have suffered a bigger loss by taking another hit of 100 points in the benchmark index, according to analysts. 

Share price of Grameenphone increased by Tk24 or 7.4 percent on Sunday as the company disclosed news on depositing Tk1,000cr to the telecom regulator, following the order of the Appellate Division on Grameenphone's civil review petition heard on February 20, 2020.

DSEX, the prime index of the Dhaka Stock Exchange, plunged 34 points or 0.7 percent to close the day at 4,699 points. 

The Shariah-based DSES index also gave up 4 points or 0.3 percent to settle at 1,086 points, while the blue-chip index DS30 lost a point or 0.1 percent to stand at 1,592 points. 

At the Chittagong Stock Exchange, the benchmark index Caspi shed 145 points or 1 percent to close at 14,380 points.

The market faced a sharp decline during the initial hours of trade but slightly picked up momentum after an hour. However, the indices again slipped points gradually at its intraday performance graphs, finally ending the day in the red territory. 

Investors remained skeptical and adopted a sideline approach to observe the market correction due to profit-booking sell offs, according to the Daily Market Review of EBL Securities Ltd. 

Trading activities mostly remained sluggish and total turnover at the DSE declined 13 percent to Tk668.5 crore on Sunday, from Tk770.6 crore in the previous session, the review added. 

On the other hand, turnover at the port city bourse faced a decline of 19 percent from Tk28.8 crore to Tk23.3 crore on Sunday.

The pharmaceuticals sector contributed the highest, 19.6 percent, to the total turnover value, followed by textile stocks adding 13.3 percent, and engineering sector adding 12 percent.
 
Most of the sectors faced price correction on Sunday, with only three sectors posting gains. 

The telecom sector exhibited the highest price appreciation of 7.7 percent, thanks to the 7.4 percent price gain of Grameenphone shares. 

Grameenphone dominated the turnover chart with a turnover value of Tk47 crore, closing the day at Tk319.6 per share. The stock was followed by Orion Pharma Ltd with a turnover value of Tk21.4 crore, closing at Tk48 per share.

Orion Infusion Ltd was the best performer on the gainers' table, advancing 10 percent, closing at Tk91.3 per share.

Prime Insurance Company Ltd was the day's worst loser due to its loss in earnings per share and declaration of no dividend, after plunging a massive 22 percent and closing at Tk20.2 per share, said the DSE website.

Losers were sharply ahead of the gainers as out of the 356 issues traded, only 70 advanced, 263 declined, and 23 remained unchanged on the DSE trading floor.