Dhaka stocks recover Tk 15,000cr in market cap in 9-day rally

Dhaka stocks advanced on Wednesday, stretching the gaining streak to the ninth consecutive session as investors continued buying shares after Sunday’s general election.
DSEX, the key index of Dhaka Stock Exchange, soared by 0.57 per cent, or 31.18 points, to close at 5,496.43 points on Wednesday. The DSEX gained 279 points in last nine sessions.
The market recovered Tk 15,000 crore in market capitalisation in the nine-day rally after losing Tk 44,878.44 crore in market capitalisation in 2018 (till December 17).
After a surge in the previous day, the market opened slow on Wednesday but rebounded strongly as investors increased buying in last hours, market operators said.
They said investors anticipated that the political environment would remain stable after the Awami League-led ruling alliance secured a landslide in the 11th parliamentary polls.
Political tensions surrounding the elections kept investors on the edge last year. DSEX plummeted by 858 points in 2018.
In the national polls, the Awami League-led ruling alliance won 288 seats while the opposition alliance led by Bangladesh Nationalist Party secured just seven.
Local and international media reported that the elections were marred by vote rigging and ballot stuffing and the opposition alliance demanded a fresh election.
Market operators said a number of businesspersons linked with certain listed companies were elected members of parliament in the elections that encouraged investors to buy the shares of those companies.
They said investors started investing at the market few days before the national polls as they expected that the market would be better after the polls.
EBL Securities in its daily market commentary said, ‘The capital market extended its gaining streak to the ninth consecutive session as investors reacted positive towards the market after the election results.’
The market saw some volatility in the middle of the session but the upbeat trend coupled with positive sentiment and expectation encouraged bargain hunters to take position, it said.
Some investors went for buying bank shares as the media reported that most of the listed banks made higher operating profits in 2018 compared with that in the previous year, market operators said.
The financial sectors led the surge with a gain in share prices of non-bank financial institutions (1.8 per cent) and banks (0.6 per cent).
Average share prices of energy, textile and pharmaceutical sectors increased by 2.0 per cent, 1.4 per cent and 0.1 per cent respectively.
Share prices of cement and telecommunications dropped by 0.7 per cent each.
The turnover on DSE advanced to Tk 696.45 crore on Wednesday compared with that of Tk 530.17 crore in the previous trading session.
Of the 336 companies and mutual funds traded on Wednesday, 225 advanced, 80 declined and 40 remained unchanged.
DSE blue-chip index DS30 increased by 0.25 per cent, or 4.78 points, to close at 1,912.97 points.
Shariah index DSES added 0.32 cent, or 4.00 points, to finish at 1,249.80 points.
BBS Cables led the turnover leaders with its shares worth Tk 30.51 crore changing hands on the day.
Paramount Textile, IFAD Autos, Saiham Cotton, Bangladesh Export Import Company, Khulna Power Company, JMI Syringes and Medical Devices, United Power Generation Company, BDCOM Online and Square Pharmaceutical were the other turnover leaders.
Quasem Industries gained the most on the day with a 9.89-per cent increase in its share prices, while AIBL 1st Islamic Mutual Fund was the worst loser, shedding 6.17 per cent.

Source: http://www.newagebd.net

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