Stock prices bounce back on DSE

FE Team | Published: August 17, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The stock prices bounced back on the Dhaka Stock Exchange (DSE) recently with injection of fresh funds having been diverted from the gilt-edged securities on which the government imposed 10 per cent tax at source.
According to stock market sources, the small investors of gilt-edged securities preferred the stock market to get better yields.
"The investors, actually began to feel secure in investing in the stock market since the assumption of office by the present caretaker government in mid-January with the crackdown on a section of corrupt investors' account in the commercial banks, but in recent period funds are being diverted from the investment of saving instruments to the bourse," a DSE source told the FE.
The two indices-DSE General Index or DGEN and All Shares Price Index or DSI- gained 57.14 and 52.82 points this week ended Thursday over the previous week.
The index of blue-chip shares-DSE20, however, shed 37.99 points in the week.
DGEN and DSI gained 16.27 and 16.80 points Thursday to close 2361.34 and 1950.70 points respectively.
The first two weeks of this month, however, passed in bearish mood amid price corrections and withdrawal of netting facility of A-category shares.
The intervention from the regulatory body to place trading of the shares of AB Bank, Power Grid, Summit Power, DESCO and BRAC Bank in the spot market and suspension of the financial adjustment facilities for A, B, G and N category shares affected the market between the period of July-end and August 9 last.
"But from the first day of this week, the market bounced back with the buying spree from the institutional and retail investors," said Ahmad Rashid, senior vice president of DSE.
He said the government decision to float shares worth Tk 650 million of state-owned Jamuna Oil and Meghna Oil also encouraged the investors.
"Fund flow from the refund warrants of IPOs like International Leasing and Phoenix Finance was another reason for the recent surge," another DSE source pointed out.
A whopping Tk 7.0 billion will be refunded to the investors from the refund warrants of Trust Bank Ltd in early September.
Investors deposited Tk 8.0 billion against Tk 700 million in the IPO of Trust Bank and the lottery will be held by the end of this month.
"Better half-yearly results of most of the listed companies and the attractive rights offer of Summit Power (80 per cent) were other good news for the investors," a market operator said.
Out of 214 issues traded, 118 gained, 76 declined and 20 remained unchanged Thursday on the DSE.
The day's turnover stood at Tk 1.42 billion.
The daily average turnover, however, declined 6.44 per cent in the week to Tk 1.19 billion from Tk 1.28 billion in the previous week.
Summit Power and DESCO were the top two turnover leaders while BRAC Bank, Square Pharma, AB Bank, UCBL, Power Grid, southeast Bank, Pubali Bank and National Bank Ltd followed the rally.
Summit Power gained 20.27 per cent in the week when the company offered 80 per cent rights.
Z-category issues- Mita Textile and Niloy Cement- rose 110.08 per cent and 86.75 per cent in the week to become the top two gainers.
Bangladesh Shipping Corporation, Eastern Lubricants, Progressive Life Insurance, Pioneer Insurance, IFIC Bank, National Life Insurance, AB Bank and Dutch-Bangla Bank also surged.