DSE benchmark soars on buying binge
Thursday, 17 September 2009
FE Report
The benchmark index of the Dhaka Stock Exchange (DSE) hit the highest level in two and a half months Wednesday, crossing the psychological mark of 3,000 as mutual funds and insurance companies saw a buying binge.
The DSE General Index (DGEN) opened in the green zone with an initial gain of 35 points on debut trading of Marico Bangladesh Ltd. At close the index rose to 3044.10 with a gain of 52.48 points or 1.75 per cent, the biggest single-day gain this year.
The share price of the debutant Marico, a subsidiary of a Mumbai-based group, surged to Tk 351.50 after subsiding from the peak of Tk 368.
The initial value of its share was Tk 90 with the face value of Tk 10 and a premium of Tk 80. Its shares worth Tk 325.95 million were traded on the day making it the second top turnover leader.
As per its unaudited half-yearly accounts as of March last, it made after-tax profit of Tk 191.70 million with the earnings per share (EPS) recorded at Tk 6.76.
"Marico share price was illogically high on its debut day," said a stockbroker. The investors might have expected a healthy dividend as its account would be closed in the current month, he added.
"Every issue should come through the book-building system to check any abnormal hike in share price on a debut trading day," said a market analyst.
The broader All Shares Price Index (DSI) rose 41.24 points or 1.63 per cent to end at 2,557.20. The DSE-20 blue chip index was up by 5.37 points or 0.25 per cent to close at 2153.08.
The day's turnover also increased significantly to stand at Tk 5.43 billion, up by 11 per cent from that of the previous session.
Gainers took a strong lead over the losers as out of 240 issues traded, 183 gained and 57 declined.
"The market was bullish just before a long recess on the occasion of the Eid festival," said Yawer Sayeed, a top fund manager.
"It was not unnatural that the investors took position anticipating good return after the long nine-day recess on the occasion of the Eid-ul-Fitr festival," he added.
The banking sector closed mixed while most of the non-banking financial institutions (NBFIs) gained. Mutual funds continued their gaining streak and the pharma sector fared relatively better.
On the other hand, energy issues closed mixed and all the insurance companies, except two, gained significantly.
The state-owned gas distribution company Titas was the top turnover leader with shares worth Tk 342.95 million changing hands, ousting Summit Power, a private electricity generation company, which had occupied the top turnover position for two days.
Maksons Spinning, Beximco Ltd, Summit Power, Navana CNG, Grameen One Mutual Fund, Bextex and Grameen Scheme Two Mutual Fund were the next other turnover leaders.
Metro Spinning was the second highest gainer with a rise of 19.89 per cent after distributing its rights shares.
The benchmark index of the Dhaka Stock Exchange (DSE) hit the highest level in two and a half months Wednesday, crossing the psychological mark of 3,000 as mutual funds and insurance companies saw a buying binge.
The DSE General Index (DGEN) opened in the green zone with an initial gain of 35 points on debut trading of Marico Bangladesh Ltd. At close the index rose to 3044.10 with a gain of 52.48 points or 1.75 per cent, the biggest single-day gain this year.
The share price of the debutant Marico, a subsidiary of a Mumbai-based group, surged to Tk 351.50 after subsiding from the peak of Tk 368.
The initial value of its share was Tk 90 with the face value of Tk 10 and a premium of Tk 80. Its shares worth Tk 325.95 million were traded on the day making it the second top turnover leader.
As per its unaudited half-yearly accounts as of March last, it made after-tax profit of Tk 191.70 million with the earnings per share (EPS) recorded at Tk 6.76.
"Marico share price was illogically high on its debut day," said a stockbroker. The investors might have expected a healthy dividend as its account would be closed in the current month, he added.
"Every issue should come through the book-building system to check any abnormal hike in share price on a debut trading day," said a market analyst.
The broader All Shares Price Index (DSI) rose 41.24 points or 1.63 per cent to end at 2,557.20. The DSE-20 blue chip index was up by 5.37 points or 0.25 per cent to close at 2153.08.
The day's turnover also increased significantly to stand at Tk 5.43 billion, up by 11 per cent from that of the previous session.
Gainers took a strong lead over the losers as out of 240 issues traded, 183 gained and 57 declined.
"The market was bullish just before a long recess on the occasion of the Eid festival," said Yawer Sayeed, a top fund manager.
"It was not unnatural that the investors took position anticipating good return after the long nine-day recess on the occasion of the Eid-ul-Fitr festival," he added.
The banking sector closed mixed while most of the non-banking financial institutions (NBFIs) gained. Mutual funds continued their gaining streak and the pharma sector fared relatively better.
On the other hand, energy issues closed mixed and all the insurance companies, except two, gained significantly.
The state-owned gas distribution company Titas was the top turnover leader with shares worth Tk 342.95 million changing hands, ousting Summit Power, a private electricity generation company, which had occupied the top turnover position for two days.
Maksons Spinning, Beximco Ltd, Summit Power, Navana CNG, Grameen One Mutual Fund, Bextex and Grameen Scheme Two Mutual Fund were the next other turnover leaders.
Metro Spinning was the second highest gainer with a rise of 19.89 per cent after distributing its rights shares.