Positive political development buoys up investors' mood
Monday, 24 November 2008
FE Report
Dhaka stocks bounced back Sunday with the highest single-day-rise of the benchmark DGEN in four months.
Market pundits attributed the rise to the latest positive political developments over national polls.
The bank, insurance and non-banking financial institutions issues led the gain.
Trading at the Dhaka Stock Exchange (DSE) started with buoyant mood from the very outset of the trade and the benchmark index gained by 101 points just before the final minutes of the trading.
The DSE General Index (DGEN) soared 100. 88 points or 3.85 per cent to close at 2716.80, its biggest single-day rise since July 24 last when it rose by 105 points.
The DGEN started sliding from the level of 2720 recorded on November 4 and was hovering just over the 2500 mark until Thursday.
Two other market barometers -- All Shares Price Index (DSI) and DSE-20 Index (DS20), -- gained 82.01 points and 87.43 points to end at 2244.01 and 2280.87 respectively.
"The market went up because of positive political development," said Salahuddin
Ahmed Khan, chief executive officer of the DSE.
A stockbroker expressed the hope that the market would be even better if the fresh schedule for elections was announced.
Investors queued up in large numbers to buy banking shares, which were in low demand for long, expecting better returns following their book closures scheduled for December 31 next.
On Thursday, the uncertainty over the holding of national polls, participated by all parties, hit the sentiment of the investors, pushing the DSE on a losing streak.
Of the total 224 issues traded on the day, 173 gained, 43 declined and eight remained unchanged.
The day's total turnover increased to Tk 2.70 billion from Tk 2.01 billion on Thursday while market capitalization rose to Tk 996 billion from Tk 959 billion.
Trading of National Bank Limited and Dutch-Bangla Bank Limited faced halt as their prices shot up to touch their respective circuit breakers.
Uttara Bank was the top turnover leader with shares worth Tk 277.81 million traded. Beximco Pharma, National Bank, Titas Gas, AB Bank, Brac Bank, GrameenS2, Beximco, Islami Bank and Dutch-Bangla Bank were the day's other turnover leaders in terms of value.
Top gainers of the day were National Bank, IFIC, Prime Insurance, BRAC Bank, Kay and Que, Apex Footwear, Shyampur Sugar, Renwick Jajneswar, AB Bank and Apex Spinning.
Top losers were National Tubes, Dandy Dyeing, Fine Foods, Metalex Corporation, ACI Formulations, Power Grid, Eastern Lubricant, Sonargaon Textiles, 8th ICB and BD Luggage.
Dhaka stocks bounced back Sunday with the highest single-day-rise of the benchmark DGEN in four months.
Market pundits attributed the rise to the latest positive political developments over national polls.
The bank, insurance and non-banking financial institutions issues led the gain.
Trading at the Dhaka Stock Exchange (DSE) started with buoyant mood from the very outset of the trade and the benchmark index gained by 101 points just before the final minutes of the trading.
The DSE General Index (DGEN) soared 100. 88 points or 3.85 per cent to close at 2716.80, its biggest single-day rise since July 24 last when it rose by 105 points.
The DGEN started sliding from the level of 2720 recorded on November 4 and was hovering just over the 2500 mark until Thursday.
Two other market barometers -- All Shares Price Index (DSI) and DSE-20 Index (DS20), -- gained 82.01 points and 87.43 points to end at 2244.01 and 2280.87 respectively.
"The market went up because of positive political development," said Salahuddin
Ahmed Khan, chief executive officer of the DSE.
A stockbroker expressed the hope that the market would be even better if the fresh schedule for elections was announced.
Investors queued up in large numbers to buy banking shares, which were in low demand for long, expecting better returns following their book closures scheduled for December 31 next.
On Thursday, the uncertainty over the holding of national polls, participated by all parties, hit the sentiment of the investors, pushing the DSE on a losing streak.
Of the total 224 issues traded on the day, 173 gained, 43 declined and eight remained unchanged.
The day's total turnover increased to Tk 2.70 billion from Tk 2.01 billion on Thursday while market capitalization rose to Tk 996 billion from Tk 959 billion.
Trading of National Bank Limited and Dutch-Bangla Bank Limited faced halt as their prices shot up to touch their respective circuit breakers.
Uttara Bank was the top turnover leader with shares worth Tk 277.81 million traded. Beximco Pharma, National Bank, Titas Gas, AB Bank, Brac Bank, GrameenS2, Beximco, Islami Bank and Dutch-Bangla Bank were the day's other turnover leaders in terms of value.
Top gainers of the day were National Bank, IFIC, Prime Insurance, BRAC Bank, Kay and Que, Apex Footwear, Shyampur Sugar, Renwick Jajneswar, AB Bank and Apex Spinning.
Top losers were National Tubes, Dandy Dyeing, Fine Foods, Metalex Corporation, ACI Formulations, Power Grid, Eastern Lubricant, Sonargaon Textiles, 8th ICB and BD Luggage.