Dhaka stocks rebound with increased turnover

August 31, 2014

DSE Weekly Review
Dhaka stocks rebound with increased turnover
Dhaka stocks rebounded last week after a decline in the previous week with an increased turnover as investors were expecting that the share prices might increase further.
The benchmark key index of the Dhaka Stock Exchange, DSEX, finished at 4,578 points, adding 0.68 per cent or 30.94 points. The daily average turnover of the DSE increased to Tk 690.21 crore last week compared with that of Tk 657.97 crore in the previous week.
As the bourse maintained a daily average turnover above Tk 600 crore for the last couple of weeks, investors became optimistic about the market prospect, market operators said.
Operators said that investors became hopeful that fresh fund would be injected into the capital market from the banking sector as the banks’ deposit rate declined significantly in recent times due to huge amount of idle money.
Regulatory pressure on the asset management companies to increase their investment at the capital market from the mutual funds was another reason for the increased investments at the capital market, they said.
The market, however, witnessed some short of volatility in the last three trading sessions of the week amid increased share selling by a section of investors to make some short-term gain, they said.
DS30, the blue-chip index of the DSE, finished at 1,726.48 points, increasing by 0.04 points.
The Shariah index of the bourse, DSES, also remained static at 1,066.12 points, increasing by 0.42 per cent or 4.42 points.
Of the 307 shares and mutual funds traded on the week, 136 advanced, 152 declined and 19 remained unchanged.
‘Holding up DSEX above 4,500-point psychological level for the last three weeks, the market observed increased investor participation,’ IDLC Investments said in its weekly market commentary.
‘Additionally, fresh fund injections, especially in large capitalised stocks aided further spike in market activities,’ it said.
Overall, the market observed investors’ favourable response to investment scenario, said IDLC.
‘Hence, after losing marginally at the opening session, the DSEX gained over lucrative price hunts in large caps like MJL Bangladesh, BSRM Steels and BEXIMCO in second and third session,’ it said.
But, investors’ intention to book profit and re-balancing of portfolio shaded the market sentiment slightly, closing DSEX red with lower turnover at the later part of the week, IDLC added.
BEXIMCO led the turnover leaders with its share worth Tk 248.32 crore changing hands last week.
MJL Bangladesh, BSRM Steels, Beximco Pharma, Grameenphone, Khulna Printing & Packaging, Lafarge Surma Cement, Square Pharma, Golden Son and ACI were among the other turnover leaders.
Agni Systems gained the most in the week with a 38.61-per cent increase in its share price.
Beximco Pharma, Salvo Chemical Industry, Golden Harvest Agro Industries, Fu-Wang Ceramic, Summit Alliance Port, Barakatullah Electro Dynamics, Rangpur Dairy and Foor Products, Golden Son and United Airways were among the other top gainers.
Pragati Life Insurance was the worst loser of the week with a 26.69-per cent decline in its share price.
Khulna Printing & Packaging, Southeast Bank 1st Mutual Fund, IFIL Islamic Mutual Fund-1, NLI First Mutual Fund, Square Pharma, GPH Ispat, Bangladesh Submarine Cable Company, Progressive Life and Provati Insurance Company were also among the top losers.

-With New Age input

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