DGEN crosses 2700 mark

FE Team | Published: October 08, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

The main index or DGEN on the Dhaka Stock Exchange crossed the 2700 mark Sunday amid institutional and retail investors' "mad rush" to buy shares of most sectors, reports bdnews24.com.
All the sectors, except for life and general insurances, moved up and drove the price-earnings (PE) ratio of the market to over 21, up from 20 last week.
A high PE, a measure of the price paid for a share relative to the income or profit earned by the firm per each share, suggests that investors are expecting higher earnings growth in future compared to companies with a lower PE
"Investors should not be overoptimistic. They should keep in mind that there are ups and downs in the market. They should be careful," said Salahuddin Ahmed Khan, chief executive of the Dhaka Stock Exchange.
The DGEN or general index surged 63.77 points or 2.38 percent to reach an all-time high of 2735.94. The index added 100 points in the six trading days from 2627.0 since Oct 1.
The DSI or all share-price index also hit its highest ever level at 2273 up 53.86 points or 2.42 percent from the previous day. The DSE-20 blue-chip index rallied 42.83 points or 2.08 percent to 2099.61.
Gainers outnumbered decliners 159 to 37. Some 11 issues held steady. Turnover touched Tk 2.32 billion from transactions of 2,12,24,942 shares.
"It was unexpected before Eid holidays," said Yawer Sayeed, who helps manage about Tk 800 million in funds at AIMS of Bangladesh.
Market operators said some investors with huge funds were investing in the shares despite high prices. A lack of investment avenues has encouraged many investors to invest in stocks, they added.
All the major indices on the Chittagong Stocks closed at an all-time high. As many as 91 scrips added, 20 dropped and seven ended stable.
A total of 24,79,800 shares of Tk 344.93 million traded.
Growth prospects of BRAC Bank, the most active issue, drove its prices 4.24 percent to Tk 1388.25. BRAC Bank earlier floated Tk 500 million bonds with a plan to raise funds through private placement.
The second most active issue, Trust Bank, listed on the bourses last week, gained for a second day and added 4.78 percent to Tk 891.75.
Speculation of making good profits pulled AB Bank 9.67 percent up to end at a high of Tk 3198.
Summit Power, the most active issue in the power sector, added 2.99 percent to Tk 1463.75.
UCBL rallied to its highest ever level to Tk 5043.25 adding 6.71 percent after it was reported that the hearing on pending AGMs would be held at Oct 10 at the high court.
UCBL had earlier said it earned Tk 228.96 each in January-June.
Prices of other active shares-AIMS 1st mutual fund, Grameen1 MF, Square Pharmaceuticals, Power Grid Company of Bangladesh and Southeast Bank-also increased.