Dhaka stocks return to green
Saturday, 17 March 2012
FE Report
Overcoming the possible political unrest emerging out of the opposition's March 12 grand rally, the Dhaka stocks returned to green last week with an improving turnover value, as the investors went for fresh buying in the latter part of the week.
The market operators said the week closed positive as the investors were somewhat optimistic following the National Board of Revenue's (NBR) reintroduction of tax rebate facility for the stock investors and momentary relief from political uncertainty.
The NBR issued a Statutory Regulatory Order (SRO) Sunday, stating, from the current month the investors in both initial public offerings (IPOs) and in shares, mutual funds and debentures in the secondary market can enjoy 10 per cent tax rebate.
"The market closed positive last week as the investors' confidence boosted up following the NBR's declaration about the tax rebate and the BNP-led alliance's programme on March 12 passed away relatively peacefully," commented a merchant banker.
"The market might have posted the large gain of 205.79 points or 4.77 per cent Monday and Tuesday following the news of reintroduction of tax rebate," stated BRAC-EPL, a stock broker, in its weekly market commentary.
"As the market was passing through a crisis moment, the investors were in cautious mood and eagerly waiting for the new leadership of the Dhaka Stock Exchange (DSE)," said an analyst.
Meanwhile, the 50th annual general meeting of the DSE was held in the city Thursday where the DSE board of directors elected Mr Md Rakibur Rahman president of the bourse for the next one year.
Mr Ahmad Rashid Lali and Mr Md Shajahan were elected senior vice president and vice president respectively.
The week witnessed five trading sessions as usual. Among those, two sessions gained heavily, one session closed flat while two sessions lost marginally.
In the week, the DSE General Index (DGEN), the yardstick of the market, went up by 198.43 points or 4.57 per cent to close at 4,543.45.
The broader All Shares Price Index (DSI) soared 163.68 points or 4.49 per cent to close at 3,808.14. The DSE-20 Index comprising blue-chip shares also advanced 61.38 points or 1.74 per cent to close at 3,584.63.
Meanwhile, the turnover value of the DSE hit almost 39 months low Sunday as most of the investors adopted wait-and-see policy centring BNP-led alliance's grand rally.
The total turnover value for the week stood at Tk 12.78 billion which was 11.9 per cent higher than the last week's value of Tk 11.43 billion.
The turnover was the lowest at Tk 1.27 billion Sunday and the highest at Tk 3.71 billion Thursday.
The average daily turnover stood at Tk 2.55 billion against Tk 2.28 billion in the previous session, indicating cautious trading by the investors and absence of institutional investors.
The market capitalisation of the DSE also advanced 3.40 per cent during the week as it was Tk 2,296.69 billion on the opening day of the week and at the end of the week it stood at Tk 2,374.67 billion.
Out of 269 issues traded during the week, 239 advanced, 24 declined and six remained unchanged.
All sectors closed higher on the week except food and allied.
The food and allied sector lost 4.04 per cent while the BATBC lost 8.22 per cent alone following its price adjustment after record date Thursday.
Among the major sectors, fuel and power posted the largest gain of 7.31 per cent, followed by telecommunications 6.01 per cent, NBFIs 5.20 per cent, pharmaceuticals 4.22 per cent and banks 3.49 per cent.
Seven companies---Summit Alliance Port, Ocean Container, Berger Paints, Summit Power, First Lease Finance, Green Delta Insurance and Linde Bangladesh disclosed their corporate declaration during the week for the year that ended December 31, '11.
Beximco Limited topped the week's turnover chart with shares worth Tk 1.0 billion changed hands.
The other turnover leaders were GP, Summit Power, Keya Cosmetics, Titas Gas, United Airways, Beximco Pharma, RN Spinning, BSRM Steels and MI Cement.
Samorita Hospital was the week's top gainer posting a rise of 25.80 per cent. It was followed by Central Insurance, United Insurance, Berger Paints, Ocean Containers, Beximco Limited, GQ Ball Pen, DESCO, CVO Petrochemical Refinery and BD Welding.
The week's worst losers included RN Spinning, LankaBangla Finance, Northern Jute, Rupali Bank, Third ICB, BATBC, Reckitt Benckiser, Union Capital, Kohinoor Chemicals and Usmania Glass.
Overcoming the possible political unrest emerging out of the opposition's March 12 grand rally, the Dhaka stocks returned to green last week with an improving turnover value, as the investors went for fresh buying in the latter part of the week.
The market operators said the week closed positive as the investors were somewhat optimistic following the National Board of Revenue's (NBR) reintroduction of tax rebate facility for the stock investors and momentary relief from political uncertainty.
The NBR issued a Statutory Regulatory Order (SRO) Sunday, stating, from the current month the investors in both initial public offerings (IPOs) and in shares, mutual funds and debentures in the secondary market can enjoy 10 per cent tax rebate.
"The market closed positive last week as the investors' confidence boosted up following the NBR's declaration about the tax rebate and the BNP-led alliance's programme on March 12 passed away relatively peacefully," commented a merchant banker.
"The market might have posted the large gain of 205.79 points or 4.77 per cent Monday and Tuesday following the news of reintroduction of tax rebate," stated BRAC-EPL, a stock broker, in its weekly market commentary.
"As the market was passing through a crisis moment, the investors were in cautious mood and eagerly waiting for the new leadership of the Dhaka Stock Exchange (DSE)," said an analyst.
Meanwhile, the 50th annual general meeting of the DSE was held in the city Thursday where the DSE board of directors elected Mr Md Rakibur Rahman president of the bourse for the next one year.
Mr Ahmad Rashid Lali and Mr Md Shajahan were elected senior vice president and vice president respectively.
The week witnessed five trading sessions as usual. Among those, two sessions gained heavily, one session closed flat while two sessions lost marginally.
In the week, the DSE General Index (DGEN), the yardstick of the market, went up by 198.43 points or 4.57 per cent to close at 4,543.45.
The broader All Shares Price Index (DSI) soared 163.68 points or 4.49 per cent to close at 3,808.14. The DSE-20 Index comprising blue-chip shares also advanced 61.38 points or 1.74 per cent to close at 3,584.63.
Meanwhile, the turnover value of the DSE hit almost 39 months low Sunday as most of the investors adopted wait-and-see policy centring BNP-led alliance's grand rally.
The total turnover value for the week stood at Tk 12.78 billion which was 11.9 per cent higher than the last week's value of Tk 11.43 billion.
The turnover was the lowest at Tk 1.27 billion Sunday and the highest at Tk 3.71 billion Thursday.
The average daily turnover stood at Tk 2.55 billion against Tk 2.28 billion in the previous session, indicating cautious trading by the investors and absence of institutional investors.
The market capitalisation of the DSE also advanced 3.40 per cent during the week as it was Tk 2,296.69 billion on the opening day of the week and at the end of the week it stood at Tk 2,374.67 billion.
Out of 269 issues traded during the week, 239 advanced, 24 declined and six remained unchanged.
All sectors closed higher on the week except food and allied.
The food and allied sector lost 4.04 per cent while the BATBC lost 8.22 per cent alone following its price adjustment after record date Thursday.
Among the major sectors, fuel and power posted the largest gain of 7.31 per cent, followed by telecommunications 6.01 per cent, NBFIs 5.20 per cent, pharmaceuticals 4.22 per cent and banks 3.49 per cent.
Seven companies---Summit Alliance Port, Ocean Container, Berger Paints, Summit Power, First Lease Finance, Green Delta Insurance and Linde Bangladesh disclosed their corporate declaration during the week for the year that ended December 31, '11.
Beximco Limited topped the week's turnover chart with shares worth Tk 1.0 billion changed hands.
The other turnover leaders were GP, Summit Power, Keya Cosmetics, Titas Gas, United Airways, Beximco Pharma, RN Spinning, BSRM Steels and MI Cement.
Samorita Hospital was the week's top gainer posting a rise of 25.80 per cent. It was followed by Central Insurance, United Insurance, Berger Paints, Ocean Containers, Beximco Limited, GQ Ball Pen, DESCO, CVO Petrochemical Refinery and BD Welding.
The week's worst losers included RN Spinning, LankaBangla Finance, Northern Jute, Rupali Bank, Third ICB, BATBC, Reckitt Benckiser, Union Capital, Kohinoor Chemicals and Usmania Glass.