Half-yearly earnings, govt move on saving tools boost stocks
Saturday, 10 July 2010
FE Report
The Dhaka Stock Exchange (DSE) witnessed bullish mood in the week that ended Thursday, after profit taking fall in the previous session.
Better-than-expected half yearly earnings by financial institutions and the government's cutting interest rate on savings certificates have propelled the market in the week, said analysts.
Being concern over the market's becoming overvalued, the Securities and Exchange Commission reduced loan margin ratio to 1:1 from 1:1.5 to cool down the market.
The decision will come into effect tomorrow (Sunday). This is the fourth such adjustment by the regulator this year.
The benchmark DSE General Index (DGEN) closed the week at 6432.50, which is an all time high, with a steep gain of 4.53 per cent or 278.82 points.
The broader All Shares Price Index (DSI) was up by 4.59 per cent or 234.63 points to 5346.26, while the DSE-20 blue chip index gained 4.0 per cent or 142.29 points to 3792.33.
"The government's move fueled the already upbeat market on better-than-expected half yearly earnings," said a merchant banker.
On Sunday, the government has slashed interest rates on savings certificates to 11 per cent from 12.50 per cent. The new rates came into effect from July 1.
The prime bourse advanced in all the trading sessions during the week. Turnover picked up its pace in the week as daily average turnover value was Tk 21.7 billion, an increase of 30 per cent over the previous week.
Financial institutions did well during the week. Issues of banks, non-banking financial institutions and life insurance sectors rose 2.68 per cent, 5.65 per cent and 3.58 per cent respectively.
Euphoria over financial stocks was their healthy half-yearly operating results, according to BRAC-EPL, an investment bank, in its weekly market commentary.
Energy sector gained 5.04 per cent in the week riding on Titas Gas that rose significantly despite the news that the company may lose some of its distribution area and assets to Bakhrabad Gas.
Apart from financial and power sectors, all other major sectors advanced in the week.
Telecommunications advanced 1.65 per cent, and pharmaceuticals 1.59 per cent, cement 11.38 per cent and tannery 8.03 per cent.
Titas Gas topped the week's turnover leader with shares worth Tk 10.0 billion changing hands.
Other turnover leaders were AB Bank, Beximco Ltd, National Bank Ltd, Pubali Bank, One Bank Limited, Shahjalal Islami Bank, Peoples Leasing and Financial Services, BRAC Bank and LankaBangla Finance Company.
The week's top gainers included National Life Insurance, Progressive Life Insurance, Bay Leasing and Investment Ltd, Midas Finance, Prime Islami Life Insurance, Dafodil Computers, Rupali Life Insurance, BATBC, Fareast Islami Life and Meghna Life Insurance.
Aims 1st Mutual Fund, Chittagong Vegetable, Sandhani Life Insurance, 5th ICB Mutual Fund, 3rd ICB Mutual Fund, Rahima Food, Popular Life insurance, Libra Infusions and Kohinoor Chemicals were the week's prominent losers.
The Dhaka Stock Exchange (DSE) witnessed bullish mood in the week that ended Thursday, after profit taking fall in the previous session.
Better-than-expected half yearly earnings by financial institutions and the government's cutting interest rate on savings certificates have propelled the market in the week, said analysts.
Being concern over the market's becoming overvalued, the Securities and Exchange Commission reduced loan margin ratio to 1:1 from 1:1.5 to cool down the market.
The decision will come into effect tomorrow (Sunday). This is the fourth such adjustment by the regulator this year.
The benchmark DSE General Index (DGEN) closed the week at 6432.50, which is an all time high, with a steep gain of 4.53 per cent or 278.82 points.
The broader All Shares Price Index (DSI) was up by 4.59 per cent or 234.63 points to 5346.26, while the DSE-20 blue chip index gained 4.0 per cent or 142.29 points to 3792.33.
"The government's move fueled the already upbeat market on better-than-expected half yearly earnings," said a merchant banker.
On Sunday, the government has slashed interest rates on savings certificates to 11 per cent from 12.50 per cent. The new rates came into effect from July 1.
The prime bourse advanced in all the trading sessions during the week. Turnover picked up its pace in the week as daily average turnover value was Tk 21.7 billion, an increase of 30 per cent over the previous week.
Financial institutions did well during the week. Issues of banks, non-banking financial institutions and life insurance sectors rose 2.68 per cent, 5.65 per cent and 3.58 per cent respectively.
Euphoria over financial stocks was their healthy half-yearly operating results, according to BRAC-EPL, an investment bank, in its weekly market commentary.
Energy sector gained 5.04 per cent in the week riding on Titas Gas that rose significantly despite the news that the company may lose some of its distribution area and assets to Bakhrabad Gas.
Apart from financial and power sectors, all other major sectors advanced in the week.
Telecommunications advanced 1.65 per cent, and pharmaceuticals 1.59 per cent, cement 11.38 per cent and tannery 8.03 per cent.
Titas Gas topped the week's turnover leader with shares worth Tk 10.0 billion changing hands.
Other turnover leaders were AB Bank, Beximco Ltd, National Bank Ltd, Pubali Bank, One Bank Limited, Shahjalal Islami Bank, Peoples Leasing and Financial Services, BRAC Bank and LankaBangla Finance Company.
The week's top gainers included National Life Insurance, Progressive Life Insurance, Bay Leasing and Investment Ltd, Midas Finance, Prime Islami Life Insurance, Dafodil Computers, Rupali Life Insurance, BATBC, Fareast Islami Life and Meghna Life Insurance.
Aims 1st Mutual Fund, Chittagong Vegetable, Sandhani Life Insurance, 5th ICB Mutual Fund, 3rd ICB Mutual Fund, Rahima Food, Popular Life insurance, Libra Infusions and Kohinoor Chemicals were the week's prominent losers.