Dhaka stocks end four-week bear run on New Year hope
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Dhaka stocks in the past week ended the four-week losing streak as a section of investors went for bargain hunting in anticipation of improved market conditions in the New Year.
DSEX, the key index of the Dhaka Stock Exchange, gained 40.45 points, or 0.92 per cent, during the past week to close at 4,459.29 points on Thursday, the last trading session of the week, after losing 313 points in the previous four weeks.
The trading in the week was shortened to four sessions as the market remained closed on December 31 due to the year-end bank holiday.
The market gained in all the sessions of the past week as investors expected the market to turn around in beginning of the year 2020.
Institutional investors in particular opted for buying shares after share prices of most of the companies had declined significantly during the recent plunges, creating an opportunity to optimise profits.
Out of the 12 multinational companies, share prices of 10 advanced while those of just two declined over the past week.
Despite gaining in all the four sessions in the past week, the market did not advance much as the slump in share prices of banks held up the uptrend.
Investors were concerned about the banking sector following the government move to bring down the banks’ lending rate to a single digit for every sector which would weigh on the banks’ profits.
Finance minister AHM Mustafa Kamal on December 30 announced that the banks would implement a 9-per cent lending rate for all sectors on April 1, instead of only for the industrial manufacturing sector.
EBL Securities in its weekly market review said, ‘Concerned over the government move to bring down the banks’ lending rate to single digit and soaring provision against the bad loans spooked the confidence of the investors on the sectoral giant, which caused -1.2 percent correction in the sector.’
The market has been in turmoil for the last 11 months causing the DSEX to fall by 1,500 points and the DSE market capitalisation by Tk 80,000 crore, which has hit the market sentiment.
Among the large capitalised companies, share prices of BRAC Bank, Grameenphone and United Power Generation Company declined most in the past week.
Average share prices of textiles, energy, non-bank financial institution and pharmaceutical sectors advanced by 1.6 per cent, 1.5 per cent and 0.9 per cent respectively.
Share prices of telecommunication and bank sectors dropped by 1.21 per cent and 1.20 per cent respectively.
The daily average turnover on the DSE increased to Tk 325.72 crore in the past week from Tk 269.76 crore in the week before.
Out of the 356 scrips traded in the past week, the prices of 232 advanced, 86 declined and 38 remained unchanged. Shariah index of the bourse DSES added 1.46 per cent, or 14.51 points, last week to close at 1,009.41 points.
DS30, the blue-chip index of the DSE, however lost 0.19 per cent, or 2.83 points, and closed at 1,506.13 points.
Khulna Power Company led the turnover chart with shares worth Tk 58.51 crore traded over the past week.
Standard Ceramic Industries, BRAC Bank, Square Pharmaceuticals, Beacon Pharmaceuticals, LafargeHolcim Bangladesh, Shurwid Industries, Daffodil Computers, National Life Insurance Company and Sinobangla Industries were the other leaders on the turnover chart.
Oimex Electrode performed the best during the past week with a 19.07 per cent increase in its share prices while Appollo Ispat performed the worst, losing 10 per cent points.
Source: https://www.newagebd.net
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