Stocks soar amid budget expectations

Image: Bizbangladesh.net
Dhaka stocks soared on Tuesday as investors went for bargain hunting amid the investors’ expectations that the new budget for the fiscal year of 2019-20 would extend incentives to the market.

DSEX, the key index of Dhaka Stock Exchange, surged by 1.43 per cent, or 75.21 points, to close at 5,328.76 points on Tuesday after gaining 0.21 in the previous session.

The market started climbing from the beginning of the day and maintained the trend until the end of the session as investors went for bargain hunting in a bearish market ahead of the announcement of the national budget for the next fiscal year, market operators said.
Besides, the market will remain closed for nine days (May 31-June 8) due to Eid-ul-Fitr holidays and weekly holidays. Most of the investors were reluctant to sell off shares as they couldn’t get their sales proceeds before the Eid holidays end.

Investors were taking position with an expectation that the market might rebound after Eid-ul-Fitr, they said. Finance minister AHM Mustafa Kamal is scheduled to place in parliament the national budget for the next fiscal year on June 13. Earlier, Kamal pledged that there would be many incentives for the stock market in the upcoming budget.

EBL Securities in its daily market review said, ‘The capital bourse of the country observed another winning session today [Tuesday] as investors are expecting a good boost to the capital market after Eid holidays.’

The core index remained positive throughout the day with active participation of investors ahead of the announcement of national budget for the fiscal year of 2019-20, it said.

The average share prices of all the large capitalised sectors advanced on the day. The share prices of telecommunication advanced by 2.4 per cent, energy by 1.6 per cent, bank by 1.51 per cent, pharmaceuticals by 1.5 per cent and non-bank financial institution by 0.8 per cent.

Out of the traded 30 bank scrips, 22 advanced, three declined and five remained unchanged. The market has been struggling to rebound from the continuous fall as the financial sector is going through a severe fund shortage that affected the capital market.

The financial sector remained volatile with fund crisis, huge bad loans, increased lending rate and pressure of exchange rate. Out of the 346 shares and mutual funds traded, 225 advanced, 70 declined and 54 remained unchanged. Turnover at the bourse rose to Tk 403.13 crore from Tk 351.44 crore in the previous session.

DS30, the blue-chip index of DSE, advanced by 1.80 per cent, or 33.06 points, to close at 1,861.37 points. DSE Shariah index DSES added 1.57 per cent, or 18.74 points, to close at 1,207.83 points. Square Pharmaceuticals led the turnover chart with its shares worth Tk 12.43 crore changing hands.

United Power Generation Company, BRAC Bank, Premier Bank, British American Tobacco, Global Insurance, First Security Islami Bank, National Life Insurance, Uttara Bank and Eastern Bank were the other turnover leaders.

New Line Clothings gained the most on the day with a 16.66 per cent increase in its share prices while Sonar Bangla Insurance was the worst loser, shedding 10.40 per cent.
Source: http://www.newagebd.net

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