Dhaka stocks set new mark as benchmark index nears 6,000
Friday, 21 May 2010
FE Report
Dhaka stocks closed in on 6,000 Thursday after fifth consecutive session of record-breaking run as investors continued to be upbeat over the government's share splitting decision and rising hopes of a market-friendly budget.
The DSE General Index (DGEN) -- the main gauge of Dhaka stocks -- gained 1.01 per cent or 60.35 points to rocket to a new height of 5981.85, driven by leasing and insurance sectors.
The broader All Shares Price Index (DSI) ended at a record 4916.54 with a gain of 46.36 points or 0.95 per cent. The DSE 20 index comprising the blue chip shares gained 37.16 points or 1.11 per cent to highest ever 3358.23.
The market went up sharply at the beginning of the session but lost the momentum after one hour. It reached the day's high at 5998 points after steady gains in late hours before closing 20 points short of 6,000.
"Investors are still bullish over the government's decision to convert high-priced shares into the stocks valued at Tk10 each," said Md Rezaul Haque, senior vice president of the Prime Finance and Investment Limited.
The government last week took the share splitting decision, setting off a five days of record-breaking runs. Thanks to the decision, small ands retail investors can now afford to buy some of the best performing stocks.
Haque said the bull-run has attracted some new investors despite worries of overheating. There are also high hopes on the forthcoming budget amid indications that it will be market-friendly like last year.
Leasing and non-banking financial institutions witnessed steep 3.81 per cent rise as 11 companies out of 19 gained more than five per cent after finishing flat in the previous session.
Among the leasing firms, Prime Finance rose highest 6.75 per cent, followed by IDLC 6.05 per cent and LankaBangla 4.04 per cent.
General insurers and life insurers gained 1.77 per cent and 2.90 per cent respectively on hopes that the companies would soon declare rights offer to hike their paid-up capital made mandatory under the new insurance laws.
The new insurance laws were enacted in March, which has hiked up paid up capital of both life and general insurance companies by at least 300 per cent.
Banking sector closed marginally 0.24 per cent up after rising steeply over the weeks. Majority of the banks declined on profit taking.
Among the gainers, Pubali Bank rose 3.43 per cent, Al-Arafah Islami Bank 3.46 per cent and Prime Bank 1.46 per cent.
Grameenphone, the largest mobile operator by revenue and lone listed company in the telecommunications sector, closed flat at Tk 280.70, ending two sessions gain.
Fuel and power sector lost 0.49 per cent after robust gain in the previous session. Mutual funds gained 0.53 per cent, pharmaceutical 0.43 per cent and cement 1.00 per cent.
Shares worth Tk17.96 billion were traded, down slightly from Tk 18.0 billion on Wednesday.
Gainers took a strong lead over the losers as out of 241 issues traded, 166 closed positive, 70 negative and five remained unchanged.
Beximco Ltd, the flagship company of the Group, topped the turnover list with shares worth Tk 1.62 billion traded.
Dhaka stocks closed in on 6,000 Thursday after fifth consecutive session of record-breaking run as investors continued to be upbeat over the government's share splitting decision and rising hopes of a market-friendly budget.
The DSE General Index (DGEN) -- the main gauge of Dhaka stocks -- gained 1.01 per cent or 60.35 points to rocket to a new height of 5981.85, driven by leasing and insurance sectors.
The broader All Shares Price Index (DSI) ended at a record 4916.54 with a gain of 46.36 points or 0.95 per cent. The DSE 20 index comprising the blue chip shares gained 37.16 points or 1.11 per cent to highest ever 3358.23.
The market went up sharply at the beginning of the session but lost the momentum after one hour. It reached the day's high at 5998 points after steady gains in late hours before closing 20 points short of 6,000.
"Investors are still bullish over the government's decision to convert high-priced shares into the stocks valued at Tk10 each," said Md Rezaul Haque, senior vice president of the Prime Finance and Investment Limited.
The government last week took the share splitting decision, setting off a five days of record-breaking runs. Thanks to the decision, small ands retail investors can now afford to buy some of the best performing stocks.
Haque said the bull-run has attracted some new investors despite worries of overheating. There are also high hopes on the forthcoming budget amid indications that it will be market-friendly like last year.
Leasing and non-banking financial institutions witnessed steep 3.81 per cent rise as 11 companies out of 19 gained more than five per cent after finishing flat in the previous session.
Among the leasing firms, Prime Finance rose highest 6.75 per cent, followed by IDLC 6.05 per cent and LankaBangla 4.04 per cent.
General insurers and life insurers gained 1.77 per cent and 2.90 per cent respectively on hopes that the companies would soon declare rights offer to hike their paid-up capital made mandatory under the new insurance laws.
The new insurance laws were enacted in March, which has hiked up paid up capital of both life and general insurance companies by at least 300 per cent.
Banking sector closed marginally 0.24 per cent up after rising steeply over the weeks. Majority of the banks declined on profit taking.
Among the gainers, Pubali Bank rose 3.43 per cent, Al-Arafah Islami Bank 3.46 per cent and Prime Bank 1.46 per cent.
Grameenphone, the largest mobile operator by revenue and lone listed company in the telecommunications sector, closed flat at Tk 280.70, ending two sessions gain.
Fuel and power sector lost 0.49 per cent after robust gain in the previous session. Mutual funds gained 0.53 per cent, pharmaceutical 0.43 per cent and cement 1.00 per cent.
Shares worth Tk17.96 billion were traded, down slightly from Tk 18.0 billion on Wednesday.
Gainers took a strong lead over the losers as out of 241 issues traded, 166 closed positive, 70 negative and five remained unchanged.
Beximco Ltd, the flagship company of the Group, topped the turnover list with shares worth Tk 1.62 billion traded.