Dhaka stocks rise amid volatile trading
Saturday, 25 April 2009
FE Report
Stock prices at the Dhaka Stock Exchange (DSE) improved for the second straight week that ended Thursday amid volatile trading.
The benchmark index DSE General Index (DGEN) gained 45.92 points to end at 2596.06. The All Shares Price Index (DSI) ended at 2150.66 with a rise of 35.54 points and the DSE-20 blue chip index finished at 2014.04 with a gain of 32.59 points.
The indices, however, gained for the first two sessions and then declined in the rest of the sessions on profit taking. The stock prices in the outgoing week became more volatile compared to the last few weeks.
The price movement in the week was rational and volatility was created because of portfolios rebalanced by the investors, analysts say.
The losers took a strong lead over the gainers as out of 299 issues traded, 53 advanced, 202 declined, four remained unchanged and 40 were not traded in the week.
The daily average turnover increased to Tk 4.96 billion, up by 23 per cent from the previous week's Tk 4.02 billion.
Increase in the turnover also reflected the intense interest of investors in banking sector as more than 33 per cent of the total trade accounted for this sector alone.
Like the previous week, the banking sector also posted gain.
At the beginning of this month banking sector reached its lowest price level losing about 38 per cent from 31 Dec 2008.
Since then the sector as a whole became extremely cheap and investors started to became aware of that which reflected its continuous gain, according to the Equity Partners Limited (EPL), an investment bank.
Another reason for price appreciation in the bank sector was that there was a rumour of a corporate tax cut for banks, which will eventually increase the profitability of the sector, there was, however, no such confirmation.
As government has a positive intention to solve the power problem of the country, people were expecting a fair reflection of this positive attitude toward this sector in the upcoming budget, the EPL said.
Speculation prone sector like IT, Engineering, Textile has declined significantly as market is experiencing a correction to the speculative investment.
The market capitalisation remained steady at Tk 1.04 billion.
Summit Power was the top turnover leader with shares worth Tk 1.74 billion traded and accounted for about 7.03 per cent of the week's total market turnover of Tk 24.80 billion at the prime bourse.
The other turnover leaders were Beximco, AB Bank, Titas Gas, Uttara Bank, Social Investment Bank, , Aftab Automobiles, Summit Alliance Port Ltd, ACI Ltd and Beximco Pharma.
During the week, the top gainers were Social Investment Bank, IFIC Bank, First Security Bank, Premier Bank Ltd, Dutch-Bangla Bank, AB Bank and One Bank.
Sonali Aansh, Desh Garments, Beimco Synthetics, BD Thai Aluminum, Standard Ceramic, Tallu Spinning, Dhaka Fisheries, Padma Printers, Anlima Yarn and Purabi General Insurance were the top losers.
The A-category issues accounted for 85.91 per cent of the total turnover in value during the week, while B-category issues accounted for 2.04 per cent, N-category 10.04 per cent and Z-category 2.02 per cent.
Stock prices at the Dhaka Stock Exchange (DSE) improved for the second straight week that ended Thursday amid volatile trading.
The benchmark index DSE General Index (DGEN) gained 45.92 points to end at 2596.06. The All Shares Price Index (DSI) ended at 2150.66 with a rise of 35.54 points and the DSE-20 blue chip index finished at 2014.04 with a gain of 32.59 points.
The indices, however, gained for the first two sessions and then declined in the rest of the sessions on profit taking. The stock prices in the outgoing week became more volatile compared to the last few weeks.
The price movement in the week was rational and volatility was created because of portfolios rebalanced by the investors, analysts say.
The losers took a strong lead over the gainers as out of 299 issues traded, 53 advanced, 202 declined, four remained unchanged and 40 were not traded in the week.
The daily average turnover increased to Tk 4.96 billion, up by 23 per cent from the previous week's Tk 4.02 billion.
Increase in the turnover also reflected the intense interest of investors in banking sector as more than 33 per cent of the total trade accounted for this sector alone.
Like the previous week, the banking sector also posted gain.
At the beginning of this month banking sector reached its lowest price level losing about 38 per cent from 31 Dec 2008.
Since then the sector as a whole became extremely cheap and investors started to became aware of that which reflected its continuous gain, according to the Equity Partners Limited (EPL), an investment bank.
Another reason for price appreciation in the bank sector was that there was a rumour of a corporate tax cut for banks, which will eventually increase the profitability of the sector, there was, however, no such confirmation.
As government has a positive intention to solve the power problem of the country, people were expecting a fair reflection of this positive attitude toward this sector in the upcoming budget, the EPL said.
Speculation prone sector like IT, Engineering, Textile has declined significantly as market is experiencing a correction to the speculative investment.
The market capitalisation remained steady at Tk 1.04 billion.
Summit Power was the top turnover leader with shares worth Tk 1.74 billion traded and accounted for about 7.03 per cent of the week's total market turnover of Tk 24.80 billion at the prime bourse.
The other turnover leaders were Beximco, AB Bank, Titas Gas, Uttara Bank, Social Investment Bank, , Aftab Automobiles, Summit Alliance Port Ltd, ACI Ltd and Beximco Pharma.
During the week, the top gainers were Social Investment Bank, IFIC Bank, First Security Bank, Premier Bank Ltd, Dutch-Bangla Bank, AB Bank and One Bank.
Sonali Aansh, Desh Garments, Beimco Synthetics, BD Thai Aluminum, Standard Ceramic, Tallu Spinning, Dhaka Fisheries, Padma Printers, Anlima Yarn and Purabi General Insurance were the top losers.
The A-category issues accounted for 85.91 per cent of the total turnover in value during the week, while B-category issues accounted for 2.04 per cent, N-category 10.04 per cent and Z-category 2.02 per cent.