DSEX surpasses 4,700-pt mark

Babul Barman | Published: April 26, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

Stocks cruised to a higher path for the second straight week and key index of the prime bourse crossed the 4,700-point mark with improved turnover, driven by banks and multinational companies.
All the five trading sessions of the week gained.
Week-on-week, DSEX, the benchmark index of Dhaka Stock Exchange (DSE), went up by 103.53 points or 2.25 per cent to close at 7-week high to 4,702.45 points.
The other two indices also closed positive. The DS30, comprising blue chips, finished the day at 1,720.20 points after surging 17.04 points or 1.00 per cent. The DSE Shariah Index rose by 5.31 points or 0.51 per cent to close at 1,040.24 points.
The port city bourse -- the Chittagong Stock Exchange (CSE)-- also went up sharply with its Selective Categories IndexÂ (CSCX) gained 215.84 points or 2.43 per cent to close the week at 9,084.55 points.
The total turnover amounted to Tk 24.72 billion on DSE which was 41.61 per cent higher than previous week's total value of Tk 17.46 billion as this week saw five trading sessions instead of previous week's four.
The average daily turnover for the week stood at Tk 4.94 billion, registering an increase of 13.29 per cent over the previous week's average Tk 4.36 billion.
"Market rally was mainly dominated by banking and multinational corporations (MNCs) stocks. Probably investors are sensing good first quarter results for banks and MNCs," commented LankaBangla Securities in its weekly market analysis.
"Banks with large treasury bond portfolio are supposed to observe healthy capital gain as interest rates of treasury bonds have gone down in recent auctions," it said.
The second highest return yielding sector was telecommunication, which was mainly driven by GP. MNCs remained lucrative to the investors this week as some of the MNCs have announced board meeting date for corporate declarations," the stock broker added.
"The bourses passed a positive week with the shuffle of investors' preference and subsequently swapping across sectors and scrips," commented IDLC Investments.
"Amid the major issues, GP's entrance in WiMax services and business re-structuring of two pharmaceutical giants stimulated investors much at the later part of week," said the merchant bank.
Meanwhile, Large Cap segment slowed a bit, while remaining Caps showcased better performance, it said.
"Throughout the week, investors also continued re-balancing their position on the basis of corporate declarations as well as first quarter's earnings expectation," the merchant bank said.
Starting with positive news of export growth especially in textile sector, market vibrated throughout the week. Stimulated with this, textile came in front line. Large Caps faced significant correction at the following day as investors booked some profit over recent bullish trend.
At the later part of week, the bourse moved up on the basis of corporate news--GP's entrance in WiMax services and Glaxo SmithKline and Novartis's business re-structuring, said the merchant bank.
The gainers took a lead over the losers as out of 302 issues traded during the week, 198 advanced, 97 declined and 7 issues remained unchanged on the DSE trading floor.
Among the major sectors, the banking sector attracted investors most as the sector rallied up during the week with the highest gain of 6.79 per cent followed by telecommunications 5.33 per cent and pharmaceuticals 2.42 per cent.
NBFIs advanced marginally by 0.57 per cent. Fuel & power lost 1.23 per cent and food & allied lost 1.23 per cent.
A total of 13 listed companies -- Fareast Finance & Investments, AFC Agro, National Housing & Finance, MJL BD, City General Insurance, Shajalal Islami Bank, Provati Insurance, Agrani Insurance, Active Fine, Central Insurance, BFIC, NCC Bank and Kay & Que -- made corporate declarations during the week.
The market capitalisation of the DSE went up by 0.186 per cent as it was Tk 2,947.66 billion on the opening day of the week and it stood at Tk 3,002.35 billion at the closing session of the week.
GP dominated the week's top turnover chart with shares worth Tk 1.88 billion changing hands during the week followed by Meghna Petroleum, Lafarge Surma Cement, Olympic Industries and Heidelberg Cement.
The investors' attention was mainly focused on bank, fuel & power and cement sectors, capturing 15.81 per cent, 15.40 per cent and 11.13 per cent respectively of the week's total market turnover.
Prime Bank was the week's top gainer, posting a rise of 19.40 per cent while Familytex (BD) was the week's worst loser, slumping by 42.35 per cent following its price adjustment after record date during the week.