Institutional buying pushes share prices up
Monday, 5 November 2007
Stocks on Dhaka Stock Exchange (DSE) rebounded Sunday buoyed mainly by institutional buying, after a week of profit taking dampening the markets, reports bdnews24.com.
"It appears that merchant banks have adjusted their margin loans to some extent. The market is witnessing investors buying again after price correction last week. It's quite normal," said Salahuddin Ahmed Khan, chief executive of the DSE.
The market grew over 1.5 per cent early in the day amid a rush to buy. It calmed down midway but picked up toward the end of the day.
The DGEN or general index was up by 35.44 points or 1.24 per cent to 2871.76. The DSI or all-share price index climbed 31.98 points or 1.32 per cent to 2443.96. The DSE-20 blue chip index rallied 35.64 points or 1.62 per cent to 2230.30.
Gainers beat losers 123 to 76 while about 17 scrips remained unchanged.
A total of 12,810,602 shares worth Tk 2.11 billion changed hands.
Social Investment Bank ruled the turnover board on rumours that it would be removed from the central bank's list of problem banks. Social Investment Bank shares climbed 8.87 percent to Tk 502.75 each.
The bank said it had applied to Bangladesh Bank to be taken off the problem bank list. But it had not yet receive a consent letter from the central bank, Social Investment Bank officials said.
Sharif Ataur Rahman, a broker at SAR Securities with 30 years of experience said," Investors are upbeat. Now new shares are needed to cool down the demand."
The second most active issue, BRAC Bank, recovered from losses last week and grew 1.04 per cent to finish at Tk 1492.75.
Trust Bank ended at 1117.5, up 3.32 per cent
from that of the previous day.
Islami Bank also regained pace.
"It appears that merchant banks have adjusted their margin loans to some extent. The market is witnessing investors buying again after price correction last week. It's quite normal," said Salahuddin Ahmed Khan, chief executive of the DSE.
The market grew over 1.5 per cent early in the day amid a rush to buy. It calmed down midway but picked up toward the end of the day.
The DGEN or general index was up by 35.44 points or 1.24 per cent to 2871.76. The DSI or all-share price index climbed 31.98 points or 1.32 per cent to 2443.96. The DSE-20 blue chip index rallied 35.64 points or 1.62 per cent to 2230.30.
Gainers beat losers 123 to 76 while about 17 scrips remained unchanged.
A total of 12,810,602 shares worth Tk 2.11 billion changed hands.
Social Investment Bank ruled the turnover board on rumours that it would be removed from the central bank's list of problem banks. Social Investment Bank shares climbed 8.87 percent to Tk 502.75 each.
The bank said it had applied to Bangladesh Bank to be taken off the problem bank list. But it had not yet receive a consent letter from the central bank, Social Investment Bank officials said.
Sharif Ataur Rahman, a broker at SAR Securities with 30 years of experience said," Investors are upbeat. Now new shares are needed to cool down the demand."
The second most active issue, BRAC Bank, recovered from losses last week and grew 1.04 per cent to finish at Tk 1492.75.
Trust Bank ended at 1117.5, up 3.32 per cent
from that of the previous day.
Islami Bank also regained pace.