Stocks bounce back
Saturday, 18 August 2007
FE Report
Stock prices on the Dhaka Stock Exchange (DSE) bounced back in the week ended Thursday amid a fresh buying after fall in two consecutive weeks.
The indices -- DSE General Index or DGEN and All Shares Price Index or DSI -- gained 57.14 and 52.82 points respectively in the week.
The DSE20 blue-chip index, however, shed 37.99 points in the week.
DGEN, DSI and DSE 20 closed 2361.34, 1950.70 and 2023.66 points respectively.
The first two weeks of this month saw a bearish market sentiment amid price corrections and withdrawal of netting facility for A-category shares.
The intervention from the regulatory body to place trading of the shares of AB Bank, Power Grid, Summit Power, DESCO and BRAC Bank in the spot market and suspension of the financial adjustment facilities for A, B, G and N category shares affected the market during the period between July-end and August 9 last.
"But from the first day of this week the market bounced back with the buying spree from the institutional and retail investors," said Ahmad Rashid, senior vice president of the DSE.
He said the government decision to float shares worth Tk 650 million of state-owned Jamuna Oil and Meghna Oil also encouraged the investors.
"Fund flow from the refund warrants of initial public offerings (IPOs) of the companies like International Leasing and Phoenix Finance was another reason for the recent surge," another DSE source said.
A large amount of Tk 7.0 billion will be refunded to the investors by the Trust Bank Ltd in early next September.
Investors deposited Tk 8.0 billion against Tk 700 million worth of IPO of Trust Bank and the lottery will be held by the end of this month.
"Better half-yearly results of most of the listed companies and the attractive rights offer of Summit Power (80 per cent) were good news for the investors," a market operator said.
Out of 274 issues, 134 gained, 86 declined, 19 remained unchanged and 35 were not traded in the week.
The daily average turnover, however, declined 6.44 per cent in the week to Tk 1.19 billion from Tk 1.28 billion in the previous week.
Summit Power and DESCO were the top two turnover leaders, followed by BRAC Bank, Square Pharma, AB Bank, UCBL, Power Grid, southeast Bank, Pubali Bank and National Bank Ltd.
Summit Power gained 20.27 per cent in the week when the company offered 80 per cent rights share.
Z-category issues -- Mita Textile and Niloy Cement-- rose 110.08 per cent and 86.75 per cent in the week to become the top two gainers.
Bangladesh Shipping Corporation, Eastern Lubricants, Progressive Life Insurance, Pioneer Insurance, IFIC Bank, National Life Insurance, AB Bank and Dutch-Bangla Bank also surged.
Stock prices on the Dhaka Stock Exchange (DSE) bounced back in the week ended Thursday amid a fresh buying after fall in two consecutive weeks.
The indices -- DSE General Index or DGEN and All Shares Price Index or DSI -- gained 57.14 and 52.82 points respectively in the week.
The DSE20 blue-chip index, however, shed 37.99 points in the week.
DGEN, DSI and DSE 20 closed 2361.34, 1950.70 and 2023.66 points respectively.
The first two weeks of this month saw a bearish market sentiment amid price corrections and withdrawal of netting facility for A-category shares.
The intervention from the regulatory body to place trading of the shares of AB Bank, Power Grid, Summit Power, DESCO and BRAC Bank in the spot market and suspension of the financial adjustment facilities for A, B, G and N category shares affected the market during the period between July-end and August 9 last.
"But from the first day of this week the market bounced back with the buying spree from the institutional and retail investors," said Ahmad Rashid, senior vice president of the DSE.
He said the government decision to float shares worth Tk 650 million of state-owned Jamuna Oil and Meghna Oil also encouraged the investors.
"Fund flow from the refund warrants of initial public offerings (IPOs) of the companies like International Leasing and Phoenix Finance was another reason for the recent surge," another DSE source said.
A large amount of Tk 7.0 billion will be refunded to the investors by the Trust Bank Ltd in early next September.
Investors deposited Tk 8.0 billion against Tk 700 million worth of IPO of Trust Bank and the lottery will be held by the end of this month.
"Better half-yearly results of most of the listed companies and the attractive rights offer of Summit Power (80 per cent) were good news for the investors," a market operator said.
Out of 274 issues, 134 gained, 86 declined, 19 remained unchanged and 35 were not traded in the week.
The daily average turnover, however, declined 6.44 per cent in the week to Tk 1.19 billion from Tk 1.28 billion in the previous week.
Summit Power and DESCO were the top two turnover leaders, followed by BRAC Bank, Square Pharma, AB Bank, UCBL, Power Grid, southeast Bank, Pubali Bank and National Bank Ltd.
Summit Power gained 20.27 per cent in the week when the company offered 80 per cent rights share.
Z-category issues -- Mita Textile and Niloy Cement-- rose 110.08 per cent and 86.75 per cent in the week to become the top two gainers.
Bangladesh Shipping Corporation, Eastern Lubricants, Progressive Life Insurance, Pioneer Insurance, IFIC Bank, National Life Insurance, AB Bank and Dutch-Bangla Bank also surged.