DGEN crosses 8000-mark
Wednesday, 10 November 2010
FE Report
Dhaka stocks rose sharply Tuesday, as healthy buying on most sectors spurred the benchmark DGEN to cross the historic 8000-mark for the first time.
Share prices of most sectors came to the investors' expected level following price correction during the last few sessions, which initiated a buying spree among them, leading the market to a new height, analysts said.
Besides, other factors like continued fund flow, slower offloading of the state owned enterprises (SoEs), and waning apprehension of massive correction ahead of the Eid-ul-Azha contributed to the rise of the market.
The benchmark DSE General Index (DGEN) surged by 1.36 per cent or 108.97 points to close at a new high of 8083.01, outshining the previous all time high of 7988.71, recorded just two days back. The DGEN crossed the 8000-mark in the last three sessions also, but did not sustain.
The market started with a strong note on the day and the momentum continued until the closure, as the investors went for fresh buying mainly of telecommunications, banking, non-banking financial institutions (NBFIs), and cement issues.
The broader All Shares Price Index (DSI) moved up by 1.29 per cent or 85.83 points to 6712.69. The DSE-20 Index comprising blue chips was up by 0.66 per cent or 31.64 points to 4791.88.
"Investors took position afresh, as share prices came to their expected level after price correction in the last few sessions," said Akter H Sannamat, managing director of Prime Finance and Investment Ltd.
He was optimistic about sustainability of the market, saying, "I find no negative factors for future. Moreover, confidence is gaining increasingly."
A broker said factors like continued fund flow, delay in offloading the SoEs' shares, and waning apprehension of massive correction ahead of the Eid-ul-Azha were also behind the surge of the market.
However, the volume of trade was relatively low, as turnover declined four per cent to Tk 23.29 billion. Out of 235 issues traded, 142 advanced, 90 declined, and three remained unchanged.
Fuel and power sector bounced back after six sessions of loss, as the government's decision regarding offloading of the SoEs' shares is likely to be delayed further.
Grameenphone, the most weighted share in the DSE, was back on the track, rising 5.41 per cent after four straight sessions of fall.
Banking issues, the market's bellwether, continued to flex their muscle over the last five sessions.
Dhaka stocks rose sharply Tuesday, as healthy buying on most sectors spurred the benchmark DGEN to cross the historic 8000-mark for the first time.
Share prices of most sectors came to the investors' expected level following price correction during the last few sessions, which initiated a buying spree among them, leading the market to a new height, analysts said.
Besides, other factors like continued fund flow, slower offloading of the state owned enterprises (SoEs), and waning apprehension of massive correction ahead of the Eid-ul-Azha contributed to the rise of the market.
The benchmark DSE General Index (DGEN) surged by 1.36 per cent or 108.97 points to close at a new high of 8083.01, outshining the previous all time high of 7988.71, recorded just two days back. The DGEN crossed the 8000-mark in the last three sessions also, but did not sustain.
The market started with a strong note on the day and the momentum continued until the closure, as the investors went for fresh buying mainly of telecommunications, banking, non-banking financial institutions (NBFIs), and cement issues.
The broader All Shares Price Index (DSI) moved up by 1.29 per cent or 85.83 points to 6712.69. The DSE-20 Index comprising blue chips was up by 0.66 per cent or 31.64 points to 4791.88.
"Investors took position afresh, as share prices came to their expected level after price correction in the last few sessions," said Akter H Sannamat, managing director of Prime Finance and Investment Ltd.
He was optimistic about sustainability of the market, saying, "I find no negative factors for future. Moreover, confidence is gaining increasingly."
A broker said factors like continued fund flow, delay in offloading the SoEs' shares, and waning apprehension of massive correction ahead of the Eid-ul-Azha were also behind the surge of the market.
However, the volume of trade was relatively low, as turnover declined four per cent to Tk 23.29 billion. Out of 235 issues traded, 142 advanced, 90 declined, and three remained unchanged.
Fuel and power sector bounced back after six sessions of loss, as the government's decision regarding offloading of the SoEs' shares is likely to be delayed further.
Grameenphone, the most weighted share in the DSE, was back on the track, rising 5.41 per cent after four straight sessions of fall.
Banking issues, the market's bellwether, continued to flex their muscle over the last five sessions.