Dhaka stocks hit new mark as GP rallies for fifth day

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FE Report
Dhaka stocks hit a new mark Sunday as the market heavyweight Grameenphone rallied for the fifth consecutive day and financials gained late on expectations of better-than-expected year-end performance of leading banks.
The DSE General Index (DGEN) --- the most representative of all three indices --- gained 46.25 points or 1.04 per cent to close at 4475.44, breaking the previous record set on December 14.
The broader DSE All Shares Price Index (DSI) rose 29.55 points or 0.80 per cent to 3695.41 while the DSE-20 blue chip index moved up 18.81 points or 0.74 per cent to 2557.05.
The market rose sharply in the opening as it gained 40 points within minutes and continued to climb slowly despite some minor bumps at close. Stock turnover rose 11 per cent to Tk7.55 billion.
Dealers said Grameenphone set the tone of the market in the morning as it climbed past Tk190 per share before settling at Tk189.70, up more than 3.95 per cent than the previous day.
It was the fifth consecutive rally for the country's largest mobile phone operator, which accounts for some 17 per cent of the DSE market capitalisation and more than 46 per cent of the country's 50.5 million cell phone users.
Last month, the company added 450,000 subscribers to take its total users to 22.75 million despite major falls announced by three other operators.
"Grameenphone and banks pushed the market to a new high," said Ahmed Rashid, managing director of the Rashid Investment Services Ltd.
"It's a good trend in the market. The investors are keen on buying shares of companies with strong fundamentals," he added.
Rashid said uncertainty over the securities regulator's recent orders has subsided and the investors have found new confidence in the market.
A senior merchant banker said financials gained after two days of bleeding on hopes that most of the private banks have a better-than-expected year-end performance.
He said the market would climb further when trading resumes a day after Monday's Ashura holiday.
Banking sector - the bellwether of the DSE --- snapped its two-day slide, gaining 0.76 per cent following a flurry of trading at the closing hours.
But state-owned Rupali Bank continued to fall with the highest daily slump of 12.38 per cent after the finance ministry last week rejected its proposal to issue right shares.
Non-banking financial institutions (NBFIs) advanced 0.43 per cent despite most of the issues went southwards.
Mutual funds continued to decline sharply losing six pet cent, as it continued to face the music of Securities and Exchange Commission's order to redeem non-tenured funds by 2011.
General insurers gained 1.93 per cent, life insurers 0.36 per cent, energy sector 0.15 per cent. Pharmaceuticals shed marginally.
Prime Bank, a leading private bank, topped the turnover list with shares worth Tk414.93 million changing hands.
Lanka Bangla Finance, AB Bank, Grameenphone, Beximco Ltd, Jamuna Oil, Maksons Spinning, Titas Gas, Shahjalal Bank and Exim Bank were the other top turnover leaders.
The leading gainers were Pragati Insurance, Berger Paintings Bangladesh Limited, Olympic Industries, Purabi General Insurance, Exim Bank,
Lanka Bangla Finance, Grameenphone, Prime Bank, EHL and Agrani Insurance.
Rupali Bank, ICB Islamic, 1st BSRS, ICB AMCL 1st Mutual Fund, Gulf Foods, Quasem Silk, Grameen One Mutual Fund, 6th ICB,Grameen Scheme Two Mutual Fund and 7th ICB were the major losres.