DSE bullish over budget speculations
Saturday, 6 June 2009
FE Report
The Dhaka Stock Exchange (DSE) witnessed a bullish trend in the week that ended Thursday on expectation of favourable national budget announcements.
Pre-budget rally continued to attract investors during the week as the DSE General Index (DGEN) -- the bench mark index -- gained 94.76 points or 4.35 per cent to finish at 2683.48.
The investors took fresh positions in banks, non-banking financial institutions (NBFIs), fuel and power, insurance, IT, mutual fund and cement scrips.
The speculation that the national budget to be announced June 11 might allow investing untaxed money in the stock market spurred massive fund flow to the market.
Lowering of corporate tax in the next budget and the recent deposit rate cut by the commercial banks were also the key factors to make the market bullish, according to analysts.
In the last session Thursday, the total turnover at the prime bourse hit Tk 6.72 billion, beating the previous highest of Tk 6.52 billion set on May 4, 2009.
"Enthusiasm among the investors over the favourable developments related to the stock market in the budget has pulled the investors' confidence up," said a market expert.
All Shares Price Index (DSI) gained 3.60 per cent or 77.74 points to close at 2234.42. DSE-20 comprising blue chip was up by 4.35 per cent or 87.14 points to finish at 2092.33.
Gainers took a strong lead over the losers as out of 299 issues traded, 152 advanced, 106 declined, eight remained unchanged and 33 were not traded in the week.
The average turnover for the week was Tk 5.72 billion, down from the previous week's Tk 5.85 billion.
This week's performance of the index overshadows that of the previous week as the market rose significantly and the DGEN seemed to be on the verge of touching the 2700 mark.
This week turnover in NBFIs decreased while banking sector booked a gain of more than 60 per cent over last week, according to the weekly analysis of the Equity Partners Limited (EPL), an investment bank.
NBFIs which had been rising consistently for the last few days saw a slowdown in its appreciation. IT and General Insurance gave the strongest performance in the week.
Speculative investors run after Beximco Group stocks which accounted for more than 15 per cent of total turnover.
Summit Power was the week's top turnover leader with shares worth Tk 2.26 billion traded, accounting for 8.23 per cent of the total turnover of Tk 28.65 billion.
The next other turnover leaders were Beximco, Bextex, Beximco Pharma, Titas Gas and DESCO.
Central Insurance was the top gainer. Its stock prices gained 32.94 per cent.
The other top gainers of the week were Karnaphuli Insurance, Sonargaon Textile, Global Insurance, Northern General Insurance and National Housing and Investment Ltd.
Green Delta Insurance, the week's top loser, dropped by 46.11 per cent because of price adjustments after distributing dividends.
Reliance Insurance, Tulip Dairy and Food, Mithun Knitting, IFIC Bank and Anwar Galvanising were the other top losers in the week.
The A-category issues accounted for 80.01 per cent of the total turnover in value during the week, while B-category issues accounted for 4.16 per cent, N-category 9.19 per cent and Z-category 6.65 per cent.
The Dhaka Stock Exchange (DSE) witnessed a bullish trend in the week that ended Thursday on expectation of favourable national budget announcements.
Pre-budget rally continued to attract investors during the week as the DSE General Index (DGEN) -- the bench mark index -- gained 94.76 points or 4.35 per cent to finish at 2683.48.
The investors took fresh positions in banks, non-banking financial institutions (NBFIs), fuel and power, insurance, IT, mutual fund and cement scrips.
The speculation that the national budget to be announced June 11 might allow investing untaxed money in the stock market spurred massive fund flow to the market.
Lowering of corporate tax in the next budget and the recent deposit rate cut by the commercial banks were also the key factors to make the market bullish, according to analysts.
In the last session Thursday, the total turnover at the prime bourse hit Tk 6.72 billion, beating the previous highest of Tk 6.52 billion set on May 4, 2009.
"Enthusiasm among the investors over the favourable developments related to the stock market in the budget has pulled the investors' confidence up," said a market expert.
All Shares Price Index (DSI) gained 3.60 per cent or 77.74 points to close at 2234.42. DSE-20 comprising blue chip was up by 4.35 per cent or 87.14 points to finish at 2092.33.
Gainers took a strong lead over the losers as out of 299 issues traded, 152 advanced, 106 declined, eight remained unchanged and 33 were not traded in the week.
The average turnover for the week was Tk 5.72 billion, down from the previous week's Tk 5.85 billion.
This week's performance of the index overshadows that of the previous week as the market rose significantly and the DGEN seemed to be on the verge of touching the 2700 mark.
This week turnover in NBFIs decreased while banking sector booked a gain of more than 60 per cent over last week, according to the weekly analysis of the Equity Partners Limited (EPL), an investment bank.
NBFIs which had been rising consistently for the last few days saw a slowdown in its appreciation. IT and General Insurance gave the strongest performance in the week.
Speculative investors run after Beximco Group stocks which accounted for more than 15 per cent of total turnover.
Summit Power was the week's top turnover leader with shares worth Tk 2.26 billion traded, accounting for 8.23 per cent of the total turnover of Tk 28.65 billion.
The next other turnover leaders were Beximco, Bextex, Beximco Pharma, Titas Gas and DESCO.
Central Insurance was the top gainer. Its stock prices gained 32.94 per cent.
The other top gainers of the week were Karnaphuli Insurance, Sonargaon Textile, Global Insurance, Northern General Insurance and National Housing and Investment Ltd.
Green Delta Insurance, the week's top loser, dropped by 46.11 per cent because of price adjustments after distributing dividends.
Reliance Insurance, Tulip Dairy and Food, Mithun Knitting, IFIC Bank and Anwar Galvanising were the other top losers in the week.
The A-category issues accounted for 80.01 per cent of the total turnover in value during the week, while B-category issues accounted for 4.16 per cent, N-category 9.19 per cent and Z-category 6.65 per cent.