Square Pharma dividend halts DSE slide, market cap reaches new high
Tuesday, 17 July 2007
FE Report
Belying speculations about a serious negative impact of Awami League chief Sheikh Hasina's arrest on the market, stock prices were bullish in Dhaka Stock Exchange (DSE) Monday, thanks to an attractive dividend declaration by the Square Pharmaceuticals only an hour after the opening of day's transactions.
The trading at the DSE, however, began 10 am on the day in a subdued note and the DSE general index shed nearly 10 percentage points within an hour's time. But as soon as the dividend declaration by the Square Pharma hit the DSE brokers' monitors, there was a complete reversal in the trading pattern with the general index climbing up by nearly 45 points within next two hours.
The Square Pharma declared 50 per cent stock and 50 per cent cash dividends for the year ending on March 31, 2007.
The total market capitalisation on the day crossed Tk 500 billion-mark with the closing of the benchmark index at 2250 points due to buoyant trading of issues under pharmaceuticals, banking and insurance sectors.
On Monday's trading session the total market capitalisation increased to Tk 501.864 billion from Tk 498.732 billion on the previous day. The total turnover was Tk 1.905 billion on the day compared to that of Tk 1.658 billion on the previous day. The total market capitalisation crossed Tk 400 billion-mark on May 03 last.
Square Pharma shares closed at Tk 4163.25 per share, recording a whopping 9.89 per cent rise in prices on the day.
"The market capitalisation crossing the Tk 500 billion-mark is another milestone in the history of our capital market," said a senior official of the DSE Monday.
A strong buying support both from retail, institutional and portfolio investors propelled the daily average turnover to a new height, he said.
The news about possible floatation of shares by big companies like GrameenPhone and other power and energy companies propelled the buying spree in the stock market in recent days, market operators said.
On Monday DSE-20 Index (DS20), DSE General Index (DGEN) and All Shares Price Index (DSI) gained by 58.888 points, 20.019 points and 13.694 points close to 1986.033, 2249.409 and 1843.925 respectively.
Out of 202 traded issues, prices of 88 gained, 86 declined and 28 remained unchanged.
Southeast Bank was the turnover leader with a volume of 173.187 million followed by BRAC Bank with Tk 148.934 million, Square Pharma with Tk 110.914 million, Power Grid with Tk 107.863 million, Shahjalal Bank with Tk 101.645 million, Prime Bank with Tk 75.821 million, Square Textile with Tk 64.750 million, UCBL with Tk 60.776 million, Grameen One with Tk 55.398 million and Heidelberg Cement with Tk 54.092 million.
Prices of Southeast Bank gained by 4.34 per cent to close at Tk 516.25 per share, Square Pharma by 9.89 per cent to Tk 4163.25, Shahjalal Bank by 4.85 per cent to Tk 259.00, Prime Bank by 2.41 per cent to Tk 775.25, Square Textile by 4.97 per cent to Tk 114.00 and UCBL by 2.35 per cent to Tk 3044.25.
Prices of BRAC Bank declined by 0.53 per cent to Tk 786.00, Power Grid by 1.18 per cent to Tk 582.00, Grameen One by 2.58 per cent to Tk 52.70 and Heidelberg Cement by 1.19 per cent to Tk 1217.25.
BRAC Bank will be placed in "A" category from existing "N" category with effect from July 17 as the Bank reported payment of Stock dividend at 20 per cent for the year 2006.
Belying speculations about a serious negative impact of Awami League chief Sheikh Hasina's arrest on the market, stock prices were bullish in Dhaka Stock Exchange (DSE) Monday, thanks to an attractive dividend declaration by the Square Pharmaceuticals only an hour after the opening of day's transactions.
The trading at the DSE, however, began 10 am on the day in a subdued note and the DSE general index shed nearly 10 percentage points within an hour's time. But as soon as the dividend declaration by the Square Pharma hit the DSE brokers' monitors, there was a complete reversal in the trading pattern with the general index climbing up by nearly 45 points within next two hours.
The Square Pharma declared 50 per cent stock and 50 per cent cash dividends for the year ending on March 31, 2007.
The total market capitalisation on the day crossed Tk 500 billion-mark with the closing of the benchmark index at 2250 points due to buoyant trading of issues under pharmaceuticals, banking and insurance sectors.
On Monday's trading session the total market capitalisation increased to Tk 501.864 billion from Tk 498.732 billion on the previous day. The total turnover was Tk 1.905 billion on the day compared to that of Tk 1.658 billion on the previous day. The total market capitalisation crossed Tk 400 billion-mark on May 03 last.
Square Pharma shares closed at Tk 4163.25 per share, recording a whopping 9.89 per cent rise in prices on the day.
"The market capitalisation crossing the Tk 500 billion-mark is another milestone in the history of our capital market," said a senior official of the DSE Monday.
A strong buying support both from retail, institutional and portfolio investors propelled the daily average turnover to a new height, he said.
The news about possible floatation of shares by big companies like GrameenPhone and other power and energy companies propelled the buying spree in the stock market in recent days, market operators said.
On Monday DSE-20 Index (DS20), DSE General Index (DGEN) and All Shares Price Index (DSI) gained by 58.888 points, 20.019 points and 13.694 points close to 1986.033, 2249.409 and 1843.925 respectively.
Out of 202 traded issues, prices of 88 gained, 86 declined and 28 remained unchanged.
Southeast Bank was the turnover leader with a volume of 173.187 million followed by BRAC Bank with Tk 148.934 million, Square Pharma with Tk 110.914 million, Power Grid with Tk 107.863 million, Shahjalal Bank with Tk 101.645 million, Prime Bank with Tk 75.821 million, Square Textile with Tk 64.750 million, UCBL with Tk 60.776 million, Grameen One with Tk 55.398 million and Heidelberg Cement with Tk 54.092 million.
Prices of Southeast Bank gained by 4.34 per cent to close at Tk 516.25 per share, Square Pharma by 9.89 per cent to Tk 4163.25, Shahjalal Bank by 4.85 per cent to Tk 259.00, Prime Bank by 2.41 per cent to Tk 775.25, Square Textile by 4.97 per cent to Tk 114.00 and UCBL by 2.35 per cent to Tk 3044.25.
Prices of BRAC Bank declined by 0.53 per cent to Tk 786.00, Power Grid by 1.18 per cent to Tk 582.00, Grameen One by 2.58 per cent to Tk 52.70 and Heidelberg Cement by 1.19 per cent to Tk 1217.25.
BRAC Bank will be placed in "A" category from existing "N" category with effect from July 17 as the Bank reported payment of Stock dividend at 20 per cent for the year 2006.