Power, gas spur Dhaka stocks
Tuesday, 15 September 2009
FE Report
Dhaka stocks rose sharply Monday as bargain hunters snapped up energy heavyweights on a series of latest government moves to boost up power and gas output.
The benchmark DSE General Index (DGEN) added 42.28 points or 1.43 per cent to close at 2995.38 with state-owned gas and power utilities and private electricity generation company Summit leading the show.
The broader All Shares Price Index (DSI) rose 35.24 points or 1.41 per cent to end at 2518.26. The DSE-20 blue chip index was up by 17.52 points or 0.82 per cent to finish at 2145.47.
The market began with buoyant mood in the morning and the rising trend continued until the close as both institutional and general investors purchased energy shares in droves.
Analysts and stockbrokers said the government's floating of tenders to generate some 1400 megawatt power in the past few days and Petrobangla's move to augment gas supply lifted up the market.
"There is growing optimism that the government's latest moves will ease acute power and gas crisis in the country," Arif Khan, deputy managing director of the IDLC Finance Ltd.
The mood was further boosted by hints that Titas, the country's largest gas distribution company, would declare better-than-expected dividend to its shareholders, he said.
He rejected the idea that fund withdrawal for Eid shopping affected the market saying the trend has already ended and investors were now in buying mood taking stock of recent declines in share prices.
Titas was the top turnover leader with shares worth Tk 484.62 million changing hands and its share prices nudged up by 3.35 per cent to close at Tk 675.50 a share.
Summit Power, the private power generation company, came out second on the news that it has been short-listed for installing the 450 megawatts Bibiyana power plant in Sylhet.
Its stock prices gained 3.05 per cent to close at Tk 1340.00 with shares worth Tk 437.67 million traded.
Banking, non-banking financial institutions, pharmaceuticals and mutual funds issues also contributed the gain. Shares of all Beximco subsidiaries went north-ward.
The market was skewed towards gainers as out of 234 issues traded, 163 advanced, 69 declined and two remained unchanged.
Insurance shares were the main losers as almost every company declined.
The day's turnover has increased significantly as it stood at Tk5.16 billion, up by 17.6 per cent over the previous session, due to huge share trading of Titas and Summit Power.
The companies with low paid up capital have also witnessed significant gain on the day with Savar Refractories gaining highest 9.67 per cent.
It was followed by Anlima Yarn, BD Wielding, Rahima Food, Eastern Lubricants, Dulamia Cotton and Imam Button.
Jute Spinners, Northern Insurance, Mithun Knitting, Reliance Insurance, Monno Stafflers, Bangladesh Shipping Corporation (BSC), Northern Insurance and Prime Insurance were the major losers.
Dhaka stocks rose sharply Monday as bargain hunters snapped up energy heavyweights on a series of latest government moves to boost up power and gas output.
The benchmark DSE General Index (DGEN) added 42.28 points or 1.43 per cent to close at 2995.38 with state-owned gas and power utilities and private electricity generation company Summit leading the show.
The broader All Shares Price Index (DSI) rose 35.24 points or 1.41 per cent to end at 2518.26. The DSE-20 blue chip index was up by 17.52 points or 0.82 per cent to finish at 2145.47.
The market began with buoyant mood in the morning and the rising trend continued until the close as both institutional and general investors purchased energy shares in droves.
Analysts and stockbrokers said the government's floating of tenders to generate some 1400 megawatt power in the past few days and Petrobangla's move to augment gas supply lifted up the market.
"There is growing optimism that the government's latest moves will ease acute power and gas crisis in the country," Arif Khan, deputy managing director of the IDLC Finance Ltd.
The mood was further boosted by hints that Titas, the country's largest gas distribution company, would declare better-than-expected dividend to its shareholders, he said.
He rejected the idea that fund withdrawal for Eid shopping affected the market saying the trend has already ended and investors were now in buying mood taking stock of recent declines in share prices.
Titas was the top turnover leader with shares worth Tk 484.62 million changing hands and its share prices nudged up by 3.35 per cent to close at Tk 675.50 a share.
Summit Power, the private power generation company, came out second on the news that it has been short-listed for installing the 450 megawatts Bibiyana power plant in Sylhet.
Its stock prices gained 3.05 per cent to close at Tk 1340.00 with shares worth Tk 437.67 million traded.
Banking, non-banking financial institutions, pharmaceuticals and mutual funds issues also contributed the gain. Shares of all Beximco subsidiaries went north-ward.
The market was skewed towards gainers as out of 234 issues traded, 163 advanced, 69 declined and two remained unchanged.
Insurance shares were the main losers as almost every company declined.
The day's turnover has increased significantly as it stood at Tk5.16 billion, up by 17.6 per cent over the previous session, due to huge share trading of Titas and Summit Power.
The companies with low paid up capital have also witnessed significant gain on the day with Savar Refractories gaining highest 9.67 per cent.
It was followed by Anlima Yarn, BD Wielding, Rahima Food, Eastern Lubricants, Dulamia Cotton and Imam Button.
Jute Spinners, Northern Insurance, Mithun Knitting, Reliance Insurance, Monno Stafflers, Bangladesh Shipping Corporation (BSC), Northern Insurance and Prime Insurance were the major losers.