Dhaka stocks rise for 7th day on budget hopes

Image: Bizbangladesh.net
Dhaka stocks advanced for the seventh session on Monday with a rise in the investors’ participation amid hopes of budgetary measures friendly to the capital market.

DSEX, the key index of Dhaka Stock Exchange, gained 0.53 per cent, or 28.62 points, to close at 5,431.59 points Monday.

The index gained 179 points in last seven sessions, ahead of the national budget to be announced by finance minister AHM Mustafa Kamal in parliament on Thursday.

In line with the previous day’s trend, DSEX started gaining from the very beginning on Monday but it went negative after two hours of trading as some investors went for profit taking the opportunity of last few days’ gain.

The key index, however, started gaining again after the mid-session because of buying pressure and ultimately closed the day positive, said market operators.

They said that the investors’ expectation for some incentives for the capital market in the upcoming budget along with budgetary measures for some sectors helped the market keep rising.

Amid recent volatility in the capital market, finance minister AHM Mustafa Kamal last month said that there would be some incentives in the FY 2019-20 budget for the capital market.

Besides, media reports that the government would give scope for legalising undisclosed money for investment in the industrial sector also encouraged investors on Monday, said market operators.

Investors’ interest in sector-specific scrips, which might get increased attention in the budget, also fuelled the price hike of the scrips, said market operators.

They said the share prices of the energy and power sector rose sharply as the sector would get increased budgetary allocation for implementation of the development programme while the textile sector advanced amid media reports that the government would increase cash incentives for the sector.

Because of the increased participation of investors, turnover at the bourse increased to Tk 484.89 crore on Monday from Tk 304.66 crore in the previous session.

Among the gaining sectors, the average share prices of power and energy sector advanced by 2 per cent, food sector 2 per cent, textile sector 1.8 per cent and cement sector rose by 1.5 per cent.

Share prices of the bank sector, however, fell by 0.9 per cent, non-bank financial sector by 0.7 per cent and telecommunication by 0.2 per cent as investors diverted fund to other sectors that gained.

Out of the 351 shares and mutual funds traded, 201 advanced, 102 declined and 39 remained unchanged. EBL Securities in its daily market update said, ‘The capital bourse of the country continued its shinning vibe today [Monday] following growing confidence among the investors.’

‘Investors kept buying shares on expectations over the upcoming budget declaration. Moreover, performance of the blue-chip shares remained positive as most of the buyers’ attention was concentrated to large-cap issues and also to the block market,’ it said.

DS30, the blue-chip index of DSE, gained 0.67 per cent, or 12.63 points, to close at 1,901.67 points. DSE Shariah index DSES added 0.98 per cent, or 11.95 points, to close at 1,232 points. United Power Generation Company led the turnover chart with its shares worth Tk 23.36 crore changing hands.

Khulna Power Company, BRAC Bank, British American Tobacco Bangladesh, National Life Insurance, Alif Industries, BBS Cables, JMI Syringe, Fortune Shoes and Aman Feed Ltd the other turnover leaders. Safko Spinning Mills gained the most on the day with a 9.7-per cent increase in its share prices while AIBL 1st Islamic Mutual Fund was the worst loser, shedding 9.8 per cent.
Source: http://www.newagebd.net

Tags :

Share this news on:

Previous Story

Trending Topics

Archive