Dhaka stocks remain in positive zone in most part of the week

FE Report Dhaka stocks remained in the positive zone in most part of the week that ended Thursday, breaking a long spell of losing streak. Last week, there was a significant rise in turnover as investors became optimistic centring the much talked-about stock market rejuvenation package. Market insiders said the investors regained their confidence and went for buying spree following the much talked-about stock market rejuvenation package. The Securities and Exchange Commission (SEC) Wednesday unveiled a 21-point stock market rejuvenation package which included greater participation of banks and other financial institutions, and formulation of a 'special scheme' aimed at helping the small investors recoup their losses. The measures included in the package are divided into three categories -- short, medium and long-term. As per SEC announcement the implementation of the short-term measures will start immediately, the medium- term measures in three months and the long-term measures in six months. Among other measures announced capital gain tax has been withdrawn for foreign institutions and Bangladeshi expatriates. The SEC also fixed a minimum level of shareholding for sponsors-directors, set at 30 per cent. Sponsor-directors of 46 companies will have to buy back shares within six months to comply with the directive. The market experts, bankers, bourses and insurers termed the rescue package positive, saying it will help bring back stability in the stock market in the long run. However, they emphasised the need for proper implementation of the package to stablise the market. The week witnessed five trading sessions as usual. Among them first three sessions gained sharply while one session lost and the last one closed flat. During the week, the DGEN, the DSE's benchmark index, gained 206.34 points or 3.99 per cent to close at 5,373.30. The broader All Shares Price Index (DSI) surged 173.95 points or 4.03 per cent to close at 4,495.53. The DSE-20 Index comprising blue-chip shares advanced only 15.30 points or 0.39 per cent to close at 3,908.34. Turnover improved remarkably in the week as Wednesday's turnover value crossed the Tk 10 billion-mark and stood at Tk 10.51 billion which was four-month high single-day turnover value. Total turnover value stood at Tk 33.80 billion in the week against Tk 14.8 billion in the previous week. Average daily turnover value was Tk 6.76 billion, up by 127.97 per cent compared to the previous week's average daily turnover value of Tk 3.0 billion. The market capitalisation was Tk 2,578.81 billion on the opening day of the week, and at the end of the week it stood at Tk 2,656.33 billion which was only 3.01 per cent higher. Out of the 266 issues traded during the week, 200 advanced and 61 declined while five remained unchanged. Beximco Limited topped the week's turnover chart with shares worth Tk 1.27 billion changing hands. The other turnover leaders were Grameenphone, Beximco Pharma, Mercantile Bank, SIBL, City Bank, UCBL, National Bank, Titas Gas and Lafarge Surma Cement. Companies having sponsor-director shareholding of less than 30 per cent share dominated the trade after the SEC made it mandatory to hold at least 30 per cent sponsor-director shares of listed companies. At present 46 listed companies' sponsor-directors out of 236 are holding less than 30 per cent shares. In the financial sector NBFIs advanced 7.79 per cent and general insurance gained 10.23 per cent while banks and life insurance gained 2.69 per cent and 1.19 per cent respectively. Among other sectors, cement and fuel and power sectors gained 7.16 per cent and 0.66 per cent while pharmaceuticals and telecommunications gained more than 2.0 per cent each. IT sector was the week's top gaining sector and advanced 29.39 per cent as In Tech Online Ltd was the week's highest gainer, posting a rise of 52.26 per cent as its sponsors-directors held only 2.56 per cent shares. The other top gainers of the week were Kay and Que, BD Com Online, Agni Systems Ltd, Fu-Wang Ceramics, BD Autocars, Metro Spinning, BD Finance, Mithun Knitting and Monno Ceramics. The week's worst losers included Atlas Bangladesh, Second ICB, MI Cement, Fifth ICB, Bangladesh Shipping Corporation, National Tubes, Reckitt Benckiser, Seventh ICB, ICB AMCL Second Mutual Fund and Gemini Sea Food. There were three companies that made corporate declaration during the week. Aftab Automobiles recommended 20 per cent cash and 20 per cent stock dividends, Bata Shoe recommended 145 per cent cash (interim) dividend and Gemini Sea Food recommended 15 per cent cash dividend. On Sunday, the market opened with gaining 146.26 points or 2.83 per cent as investors' confidence was boosted by the Prime Minister's pledges. Turnover increased to Tk 4.75 billion against Tk 4.16 billion in the previous session. On Monday, the market edged marginally higher amid volatile trading, maintaining the four straight sessions' of uptrend with significant rise in turnover. The DSE general index rose 9.45 points or 0.18 per cent while turnover value stood at Tk 5.19 billion. On Tuesday, the market climbed 274.27 points or 5.15 per cent to close at 5,596.96 with turnover crossing the Tk 8.0 billion-mark which was the highest in almost four months as optimism grew among the investors. On Wednesday, the market witnessed sharp fall and DGEN lost 224.30 points or 4.0 per cent ahead of the regulator's bailout package announcement. However, turnover crossed the Tk 10 billion-mark for the first time in nearly four months and stood at Tk 10.51 billion. On Thursday, the market closed flat amid extreme volatile trading with turnover declining substantially, a day after the announcement of a 21-point stock market rejuvenation package as majority of investors observed the market situation. The key index of the DSE rose only 0.64 points or 0.01 per cent to close at 5,373.30 while turnover declined to Tk 5.30 billion.