The latest cut in fuel oil prices drove upward the share prices of oil distributing companies at both Dhaka and Chittagong stock exchanges, slowing the falling trend that the market started to show from the beginning of the day`s trading.
The trading at Dhaka Stock Exchange (DSE) began in the negative, with the broader index plunging on falling share prices, but renewed and strong demand of energy issues halted the falling trend at the mid-day trading though the session closed in red.
"When all the major stocks followed the negative trend in market, oil distributing companies posted significant move to the upside, supporting the market to limit the day`s losses", said the Lanka Bangla Securities Limited.
The government on Sunday cut the prices of major petroleum products, ranging from 4.41 percent to 10.41 percent. As a result of the price cut, oil shares on DSE sow higher trade, making MJLBD and Jamuna Oil the two top performing companies.
Power Grid also secured the fourth position in the day`s top five mostly traded securities. The two other most liquid issues were BSRM Limited and ACI.
Due to the high demand, the day`s turnover in volume of oil and power issues together rose by 40.0 percent when the value increased by nearly 35.0 percent though the overall day`s transaction declined. On DSE, the trade volume fell by 16.05 percent, but the value rose marginally to Taka 331.29 crore.
Out of the day`s traded 311 issues, only 81 closed higher against 184 losing scripts. The higher number of lagging securities finally dragged the price indices down despite strong performance of energy issues. The boarder DSEX index of DSE finished the day 16.61 points down at 4321.62, with the blue-chip DS30 and the Shariah DSES followed it to close at 1658.53 and 1053.62 respectively.
Chittagong Stock Exchange (CSE) also closed the day in red, with its major CSCX index closing over 25 points down at 8077.25.
The daily turnover in value at CSE was Taka 19.82 crore for over 64 lakh shares when 139 issues suffered losses and 62 closed marginally up.
The major gaining sectors were fuel and cement when bank and pharmaceuticals were the most losing sectors.
The top five gaining companies were Aziz Pipe, Libra Infusion, Eastern Cables, Apex Food and Central Insurance. The major losers included Exim1stMF, BNICL, BSRM Limited, Eastern Insurance and Central PHL.
MJLBD topped the turnover list followed Jamuna Oil, Power Grid, ACI and Doreen Power.