BB's positive move, good corporate results boost share prices

FE Team | Published: August 01, 2009 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
Share prices at the Dhaka Stock Exchange (DSE) saw an upward trend in the week that ended Thursday following good half yearly corporate performance reports and the central banks' positive move boosted the investors' confidence.
The benchmark DSE General Index (DGEN) closed at 2914.53 with a gain of 48.32 points or 1.69 per cent. The All Shares Price Index (DSI) gained 37.65 points or 1.57 per cent to close at 2441.32. The DSE-20 blue chip index edged up by 13.44 points or 0.61 per cent to finish at 2222.01.
The market has turned around after experiencing three straight week of bearish sentiments, with comparatively higher turnover which indicated that buying interest increased during the week.
Almost all the stocks driven by fundamentals came close to their reasonable prices in the week.
Among the high market capitalisation sectors, energy sector performed better than any others as the market was expecting their corporate declaration regarding profit figures and dividends
The capital market regulator and the central bank sat together on Tuesday and stated their commitment to develop the country's capital market and disclosure of half yearly results has sent the market into the positive territory, according to the Equity Partners Ltd (EPL), an investment bank, in its weekly analysis.
During the week, a few companies gained a significant amount as their interim dividend declaration came as a shock to the market since they do not match with their previous track record, it said.
Most of the companies in cement sector have been benefited except Lafarge as clinker price has gone down in the international market.
With low clinker prices, cement companies gross margin has increased significantly which has been reflected in the half year '09 disclosure.
Although turnover in banking sector went down to the floor, the sector was quite steady, not losing too much. Recently investors have shown interest on those, which had good half yearly results.
The average daily turnover of the week stood at Tk 4.95 billion, an increase of 14.72 per cent down from previous week's Tk 4.32 billion, indicating that the investors' confidence have been restored.
Out of 301 issues traded during the week, 185 gained, 58 declined and one remained unchanged while 57 were not traded.
The country's leading industrial conglomerate Beximco Ltd retained the top turnover leader position for the second consecutive week with shares worth Tk 1.68 billion traded, accounting for 6.74 per cent of the total turnover of Tk 24.79 billion.
The other turnover leaders were Titas Gas, Bextex Limited, AIMS Firs Mutual Fund, Jamuna Oil, Beximco Pharma, Summit Power and AB Bank.
Samorita Hospital was the week's top gainer posting a rise of 74.35per cent in its share price. In response to a DSE query, the company said that there was no undisclosed price sensitive information for its recent unusual price hike.
The other major gainers of the week were Gemini Sea Food , Savar Refractories, Reckitt Benckiser (Bd), Bangla Process, Kohinoor Chemicals and Jute Spinners.
Prime Life Insurance, IFIC Bank, Second ICB Mutual Fund, Meghna Cement, CMC Kamal, ACI Formulations Ltd, Rahim Textile and Aftab Automobiles were the other major losers during the week.