Stocks gain for second week on budget hopes
Image: Bizbangladesh.net
Dhaka stocks advanced in the past week after a marginal gain in the previous week as a section of investors kept buying shares amid budget-centric expectations.
Finance minister AHM Mustafa Kamal is likely to place before parliament the national budget for the fiscal year of 2019-20 on June 13.
DSEX, the key index of Dhaka Stock Exchange, gained 2.47 per cent, or 127.15 points, over the week to close at 5,377.74 points on Thursday, the last trading session of the week, after gaining 19.81 points in the previous week.
The market witnessed positive run in all the sessions of the week as bargain hunters were active after the recent plunges in share prices, market operators said.
They said that a section of investors expected that the market might turn around soon as there would be some incentives for the stock market in the upcoming national budget.
The index stayed flat in the beginning of the week as investors rebalanced their portfolios prior to Eid closure of the market.
The market went into a nine-day recess on Friday and will remain closed till June 8 due to Eid-ul-Fitr holidays and weekly holidays.
The EBL Securities in its weekly market commentary said, ‘From the third session, DSE index started increasing with an anticipation of favourable budget declaration just after the Eid vacation. Investors kept buying in the final session as their confidence was restored following the news of some amendments to Bangladesh Securities and Exchange Commission (Public Issue) rules, 2015.’
Market regulator BSEC tightened public issue rules to prevent fraudulent activities in the capital raising process. The move was welcomed by investors and other stakeholders, market operators said.
Besides, some investors were reluctant to sell off shares just before the Eid holidays as they could not get the sales proceeds before the holidays end for the settlement framework, they said.
The average share prices of telecommunication sector advanced by 4.9 per cent, that of non-bank financial institution sector by 4.8 per cent, that of bank sector by 3.9 per cent and that of energy sector by 2.9 per cent.
All the multinational companies except two advanced in the week that supported the market to remain afloat.
The daily average turnover on DSE increased slightly to Tk 368.29 crore in the past week from Tk 358.60 crore in the previous week.
Market experts said the market was yet to recover from the bearish sentiment. The liquidity crisis in the financial sector must be resolved to boost the capital market, they said.
Out of the 350 issues traded, 199 advanced, 113 declined and 40 remained unchanged.
DS30, the blue-chip index of DSE, added 2.39 per cent, or 43.78 points, to close at 1,876.60 points.
Shariah index DSES gained 1.79 per cent, or 21.36 points, to finish at 1,214.26 points.
United Power Generation Company led the turnover chart with its shares worth Tk 64.27 crore changing hands in the week.
National Life Insurance, British American Tobacco, Square Pharmaceuticals, New Line Clothings, JMI Syringe, Eastern Cables, BRAC Bank, SK Trims and Fortune Shoes were the other turnover leaders.
National Life Insurance Company gained the most in the week with a 21.56-per cent increase in its share prices while Meghna Condensed Milk was the worst loser, shedding 15.60 per cent.
Source: http://www.newagebd.net