Stocks soar for 4th week as banks, GP surge
Dhaka stocks jumped last week, extending the gaining streak to the fourth consecutive week, amid a strong participation of investors as they continued buying shares, especially from financial scrips and Grameenphone after their year-long losses.
The daily average turnover on Dhaka Stock Exchange soared by 37.36 per cent to Tk 985.12 crore in last week from Tk 717.18 crore in the previous week.
DSEX, the key index of DSE, soared 3.70 per cent, or 206.83 points, to close at 5,797.30 points on Thursday, the last trading session of the week.
The DSEX gained 545.45 points in last four weeks.
The market witnessed a bullish week amid increased turnover as investors kept purchasing shares after the December 30 national elections.
The investors who were in the side line last year for political anxiety returns their investment as the core index has been recovering from its early losses, they said.
Investors became active after the Awami League-led ruling alliance won a landslide with 288 seats in the national elections tainted by frauds and vote rigging while the opposition alliance led by Bangladesh Nationalist Party secured just seven.
As the opposition front failed to launch any movement against the vote rigging, investors sensed that there would be political calm in near future and went for investment, said market operators.
EBL Securities in its weekly market commentary said that stocks witnessed sharp gain as the optimistic investors, with growing confidence, continued their buying spree ahead of dividend declaration session.
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.
The financial sector led the surge for another week with a gain in share prices of non-bank financial institutions and bank dropped by 7.2 per cent and 4.8 per cent respectively.
Out of the 30 traded bank scrips, share prices of all of them except two advanced while out of the 23 NBFIs, 19 advanced, three declined and one remained unchanged over the week.
Among the large capitalised scrips, share prices of Olympic Industries, Investment Corporation of Bangladesh and GP shot by 18.7 per cent, 11.8 per cent and 6.4 per cent respectively.
Average share prices of telecommunication, energy and pharmaceutical sectors soared by 6.6 per cent, 2.8 per cent and 2.5 per cent respectively.
Out of the 347 traded issues, 261 advanced, 79 declined and 7 remained unchanged.
DS30, the blue-chip index of DSE, added 3.59 per cent, or 69.75 points, over the week to close at 2,011.74 points.
Shariah index DSES increased by 3.72 per cent, or 47.30 points, to close at 1,318.66 points.
BBS Cables led the turnover chart with its shares worth Tk 125.58 crore changing hands in the week.
Olympic Industries, BRAC Bank, Bangladesh Export Import Company, JMI Syringes & Medical Devices, Paramount Textile, Active Fine Chemicals, Singer Bangladesh, Khulna Power Company and Dragon Sweater and Spinning were the other turnover leaders.
United Insurance Company gained the most in the week with a 23.51-per cent increase in its share prices, while Pragati Life Insurance was the worst loser, shedding 5.32 per cent.
Source: http://www.newagebd.net