Dhaka stocks gain for 2nd week on earnings reports
Image: Bizbangladesh.net
Dhaka stocks advanced in the past week, adding to the gains in the previous week, as investors went on buying shares of sector specific scrips considering better financial announcements.
DSEX, the key index of Dhaka Stock Exchange, gained 0.71 per cent, or 36.48 points, over the week to close at 5,169.74 points on Thursday, the last trading session of the week after inching up by 2.56 points in the previous week.
Before the two-week gains, the DSEX had lost 299.36 points in three weeks.
The market gained in four out of the five trading sessions as investors went on buying shares following better earning disclosures by a number of companies, especially the bank scrips, market operators said.
They said that most of the banks had declared profit growth for January-June period compared with the same period in the previous year that drew attentions of many investors.
Most of the multinational companies got investors’ attention in the week due to better earnings disclosures by a number of companies including GlaxoSmithKline, Singer Bangladesh and Marico Bangladesh.
Besides, share prices of many low capitalised and non-performing companies soared on the week.
Monno Ceramic shot by 51 per cent, Monno Jute Srafflers 43 per cent, Intech 30 per cent and BD Autocars 20 per cent over the week.
The market started to recover from the 31-month low on July 22 after the market regulator Bangladesh Securities and Exchange Commission had moved to revive investors’ confidence. It held a number of meetings with different intermediaries to find out the reasons behind the relentless fall.
The Bangladesh Bank also advised the banks to inject funds in the capital market that had also played a key role in recovering the market.
The concern over the financial market following the government decision to wind up the People’s Leasing and Financial Services appeared to be waned for the time being after better earnings disclosures and regulatory intervention.
Besides, share prices of Grameenphone advanced by 3.4 per cent in the week after four straight weeks of rout over feud with Bangladesh Telecommunication Regulatory Commission over unpaid audit claim.
Average share prices of telecommunication, pharmaceuticals, textile and bank sectors advanced 4 per cent, 1.8 per cent, 1.1 per cent and 0.2 per cent respectively.
The daily average turnover on DSE increased to Tk 440.44 crore in last week from Tk 399.68 crore in the previous week.
On the other hand, average share prices of mutual fund plummeted by 19.1 per cent on the week as the most of the funds declared lower than expected dividends for the year end June this year.
Share prices of food, non-bank financial institution and energy sectors dropped by 3.5 per cent, 1.8 per cent and 1.1 per cent respectively.
The EBL Securities in its weekly market commentary said ‘The market got it support level and investor got back confidence due to supportive monetary policy which directed for easing up money flow to the economy. Besides, ongoing earning declarations met investors’ expectations which encouraged them to take fresh position in sector specific scrips.’
Out of the 354 issues traded in the week, 154 declined, 182 advanced and 18 remained unchanged.
DS30, the blue-chip index of DSE, gained 0.13 per cent, 2.31 points, to close at 1,838.50 points.
Shariah index DSES added 1.57 per cent, or 18.46 points, to finish at 1,192.19 points.
Fortune Shoes led the turnover chart with its shares worth Tk 94.42 crore changing hands in the week.
United Power Generation Company, Bangladesh Shipping Corporation, Monno Ceramic Industries, Beacon Pharmaceuticals, Genex Infosys, JMI Syringe, Sinobangla Industries and Singer Bangladesh were the other turnover leaders.
Monno Ceramic Industries gained the most in the week with a 51.06-per cent increase in its unit prices while Vanguard AML Rupali Bank Balanced Fund was the worst loser, shedding 37.38 per cent.
Source: http://www.newagebd.net
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