Stock prices gain amid buying spree

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FE Report
Stock prices, led by banks, power and insurance issues, gained Monday for the second consecutive trading day on the Dhaka Stock Exchange (DSE) amid buying spree from the retail and institutional investors.
Trading resumed on the day after a three-day gap due to weekly holidays (Friday and Saturday) and Victory Day (Sunday).
The market operators attributed the upswing trend of the market to completion of loan adjustment by the institutions and anticipation of declaration of dividend and right share issue by banks in the near future.
Around 55 per cent buying orders came from retail investors and 45 per cent from institutional investors, a DSE source told the FE.
The total turnover rose to Tk 1.21 billion in the day's trading, dominated by gainers, from Thursday's Tk 1.08 billion. The total market capitalisation also climbed to Tk 733.42 billion from Tk 727.28 billion.
All the market barometers -- DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 Index (DS20) - gained 29.40 points, 25.11 points and 8.54 points to close at 2965.57, 2500.03 and 2350.54 respectively.
Out of 219 traded issues, prices of 108 advanced, 91 declined and 20 remained unchanged.
"Stock prices gained Monday as the investors bought shares to get good return from the banks as they anticipate that the banks might declare dividend and issue right share for the coming years," said a stock broker.
In addition, most of the institutions have already completed their loan adjustment of the year-end to start fresh buying, he added.
Brac Bank was the top turnover leader on the day with shares worth Tk 153.86 million changing hands. Stock prices of the bank opened at Tk 1567.25 and closed at Tk 1634.
United Commercial Bank (UCB) was the second turnover leader shares worth Tk 77.98 million followed by Prime Bank Tk 53.90 million, NBL Tk 50.44, Shahjalal Bank Tk 49.69 million, Southeast Bank Tk 39.15 million, Uttara Bank Tk 38.71 million, IBBL Perpetual Bond Tk 37.33 million, Power Grid Company of Bangladesh (PGCB) Tk 36.46 million and Standard Bank Limited Tk 34.03 million.
The price of Aziz Pipes, a Z-category issue, whopped 10.88 per cent to close at Tk 188.50 per share propelled by a rumour that Investment Corporation of Bangladesh (ICB) will be included in the management of the company.
However, in response to a DSE query, the company has informed that there is no undisclosed price sensitive information of the company for recent unusual price hike, according to DSE website.
Share prices of Dutch Bangla Bank increased by 7.05 per cent, AB Bank by 5.09 per cent, Purabi General Insurance by 5.74 per cent, Paper Processing by 5.88 per cent and Saleh Carpet by 6.25 per cent.
Meanwhile, Fuwang Food will be placed in "B" category from existing "A" category with effect from today (Tuesday) as the company declared five per cent cash dividend for the year 2006-2007.