Buying spree leads stock prices at DSE to rise
Monday, 12 November 2007
FE Report
Stock prices on the Dhaka Stock Exchange (DSE) registered a rise for the third consecutive trading session Sunday as both retail and institutional investors continued their buying spree.
The stocks under banking sector, Beximco Group issues, Eastern Lubricant and Padma Oil gained significantly though the losers dominated in the first trading session of the week.
Prices of banking issues continued to rise since the central bank asked the commercial banks to raise their capital base upto Tk 2.0 billion, according to market operators.
On the other hand, Beximco Group issues rose as the government softened its move on the detained business leaders and released Abul Khair Litu and Abdul Awal Minto.
All the Beximco issues-Bd Online, Beximco, Bextex, Beximco Pharma, Beximco Synthetics and Shinepukur- rose 4.18 per cent, 7.29 per cent, 6.00 per cent, 4.74 per cent, 2.34 per cent and 5.49 per cent respectively against the previous day.
Two fuel and power sector issues- Eastern Lubricant and Padma Oil- whooped 14.35 per cent and 8.85 per cent respectively on the news that two more power sector issues (Jamuna Oil and Meghna Oil) will be directly listed on the bourses by the end of this month.
The DSE general index or DGEN touched its highest 2980 points at the onset of the trading session. It later, however declined to 2954.45 points, 14.31 points higher against the previous trading day.
The other two market barometers-All share price index (DSI) and DS 20-gained 8.44 points at 2502.45 and 20.20 points at 2272.42 respectively.
Out of 211 issues traded on the day, 82 gained, 111 declined and 18 remained unchanged.
The total turnover rose to Tk 2.509 billion from Tk 2.497 billion while the total market capitalisation also rose to Tk 715.44 billion from the previous Tk 713.44 billion.
The BRAC Bank advanced by 3.19 per cent to close at 1565.25 and Lafarge Surma Cement Limited 3.50 per cent at Tk 449.75 per share.
Other turnover leaders on the day were PGCB, Summit Power, Trust Bank, Islami Bank, Beximco Pharma, Social Investment Bank Limited, Standard Bank Limited and Keya Cosmetics
Talking to FE, a market analyst said the investors could not be stopped to pump their funds in the existing stocks as they find no other shares where they can inject the fund.
"To tackle this situation, the government should float the shares of the state-owned enterprises. Otherwise, the market will go beyond control," he added.
Chief executive officer (CEO) of AIMS Yawar Sayeed said, "Actually the country's stock market is speculator-driven. Discreet speculators are buying the equities and taking away the profits."
Stock prices on the Dhaka Stock Exchange (DSE) registered a rise for the third consecutive trading session Sunday as both retail and institutional investors continued their buying spree.
The stocks under banking sector, Beximco Group issues, Eastern Lubricant and Padma Oil gained significantly though the losers dominated in the first trading session of the week.
Prices of banking issues continued to rise since the central bank asked the commercial banks to raise their capital base upto Tk 2.0 billion, according to market operators.
On the other hand, Beximco Group issues rose as the government softened its move on the detained business leaders and released Abul Khair Litu and Abdul Awal Minto.
All the Beximco issues-Bd Online, Beximco, Bextex, Beximco Pharma, Beximco Synthetics and Shinepukur- rose 4.18 per cent, 7.29 per cent, 6.00 per cent, 4.74 per cent, 2.34 per cent and 5.49 per cent respectively against the previous day.
Two fuel and power sector issues- Eastern Lubricant and Padma Oil- whooped 14.35 per cent and 8.85 per cent respectively on the news that two more power sector issues (Jamuna Oil and Meghna Oil) will be directly listed on the bourses by the end of this month.
The DSE general index or DGEN touched its highest 2980 points at the onset of the trading session. It later, however declined to 2954.45 points, 14.31 points higher against the previous trading day.
The other two market barometers-All share price index (DSI) and DS 20-gained 8.44 points at 2502.45 and 20.20 points at 2272.42 respectively.
Out of 211 issues traded on the day, 82 gained, 111 declined and 18 remained unchanged.
The total turnover rose to Tk 2.509 billion from Tk 2.497 billion while the total market capitalisation also rose to Tk 715.44 billion from the previous Tk 713.44 billion.
The BRAC Bank advanced by 3.19 per cent to close at 1565.25 and Lafarge Surma Cement Limited 3.50 per cent at Tk 449.75 per share.
Other turnover leaders on the day were PGCB, Summit Power, Trust Bank, Islami Bank, Beximco Pharma, Social Investment Bank Limited, Standard Bank Limited and Keya Cosmetics
Talking to FE, a market analyst said the investors could not be stopped to pump their funds in the existing stocks as they find no other shares where they can inject the fund.
"To tackle this situation, the government should float the shares of the state-owned enterprises. Otherwise, the market will go beyond control," he added.
Chief executive officer (CEO) of AIMS Yawar Sayeed said, "Actually the country's stock market is speculator-driven. Discreet speculators are buying the equities and taking away the profits."