Dhaka stocks, turnover mark rise

FE Report Dhaka stocks gained for the second consecutive session Thursday with all indices and turnover moved up substantially as investors' confidence was boosted by the news that the regulatory body is going to give approval to the Bangladesh Fund. With the positive sentiment of the investors the market began the day with a strong note, gaining 77 points within five minutes and the momentum continued until the closure, as the investors went for fresh buying on the available attractive price of shares and finally closed 102 points higher. After opening strongly, the DSE General Index (DGEN), yardstick of the market, rose 102.75 points or 1.64 per cent to 6,352.10. The broader DSE All Shares Price Index (DSI) shot up by 84.51 points or 1.63 per cent to 5,275.13. The DSE-20 blue chip index rose 59.95 points or 1.53 per cent to 3,968.38. The day's total turnover increased substantially to Tk 10.49 billion in value terms, up by 39.9 per cent, from Tk 7.50 billion in the previous session. It was the week's highest turnover. Overall 71.19 million shares changed hands on the day against 54.92 million in the previous session. The trade deals also increased to 194,480 against 151,652 in the previous session. The market capitalization slightly increased to Tk 2,855.30 billion against Tk 2,812.07 billion in the previous session. The gainers took strong lead over the losers as out of total 260 issues traded on the day, 226 registered gains, 27 declined and two remained unchanged. "The market got positive momentum as retail investors are more active following the SEC's positive news regarding the Bangladesh Fund," said Ahasanul Islam Titu, senior vice president of the Dhaka Stock Exchange (DSE). "The investors are becoming more optimistic, and they will be more confident in coming days, as there remains no uncertainty about the formation of the Bangladesh Fund," said Mr Islam. However, he said, the participation from institutional investors is yet to come to the expected level. Buying pressure, both from institutional and retail investors jacked the share price up of almost all the sectors. Among the major sectors banks, NBFIs, telecommunication and fuel and power gained 0.51 per cent, 2.41 per cent, 4.26 per cent and 0.99 per cent respectively. Other sectors like mutual fund 1.03 per cent, pharmaceutical 1.70 per cent, general insurance 1.54 per cent, life insurance 2.27 per cent cement 2.02 per cent, ceramics 1.01 per cent, textile 1.46 per cent and jute gained 5.42 per cent on the day. Among the 27 banks traded on the day, 22 gained, in the NBFIs sector out of 21 issues, 18 gained, among the 20 issues in pharmaceuticals sector, 19 gained, in the insurance sector 43 issues traded, 40 gained, in the fuel and power sector 10 issues traded and eight gained. Grameenphone, the lone listed company in the telecom sector, advanced by Tk 7.70 per share and closed at Tk 173.90 on the day. Peoples Leasing and Financial Services Limited topped the turnover list with shares worth Tk 537.53 million changed hands. The other turnover leaders were Aftab Automobiles, Beximco Limited, Titas Gas, RN Spinning, Bextex Limited, Fu-Wang Ceramics, Golden Sons, DESCO and Grameenphone Limited. Fidelity Assets & Securities Company Ltd was the day's top gainer posting 10.50 per cent rise following its corporate declaration on the day. The company recommended 15% stock dividend for the year 2010. It was followed by Hakkani Pulp and Papers, Aramit, Imam Button, Atlas Bangladesh, MBL First Mutual Fund, Ambee Pharma, Desh Garment, Sonargaon Textile and S. Alam Cold Rolled Steels Ltd. RN Spinning was the day's prominent loser. The company lost 19.06 per cent on the day following price adjustment of the record date for dividend entitlement. It was followed by Beacon Pharma, ACI 20% Convertible Zero Coupon Bonds, BD Welding, Dhaka Bank, Keya Detergent, Peoples Insurance, Asia Insurance Fifth ICB and IFIL Islamic Mutual Fund-1.