H-1 earnings, likely pro-mkt MPS lift stocks

FE Team | Published: July 26, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Babul Barman
Stocks closed positive for the second week straight with improved turnover, spurred by better than expected half-yearly earnings and the potentially capital-market friendly monetary policy.
It was the last trading week on the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) before a nine-day Eid vacation. The Bangladesh Bank will announce its next monetary policy statement today (Saturday).
The week featured all five trading sessions as usual. Among them, the market closed positive three sessions while two sessions ended in the red.
Week-on-week, DSEX, the prime index of DSE crossed the 'psychological' threshold of 4,400 points and closed at 4,427.16 points, gaining 35 points or 0.80 per cent.
The DS30, comprising blue chips, went up by 23.58 points or 1.47 per cent to close at 1,626.52 points. The DSE Shariah Index gained 5.78 points or 0.58 per cent to close at 1,004.66 points.
The port city bourse also ended higher with its Selective Categories Index - CSCX - went up by 54.15 points or 0.65 per cent to close at 8,381.14 points.
Investors' participation increased significantly last week. The turnover value amounted to Tk 16.06 billion, which was Tk 10.39 billion in the week before.
The daily turnover for the week averaged Tk 3.21 billion, registering a 54.64 per cent increase over the previous week's average of Tk 2.07 billion.
"Increased turnover is indicating that market participants are taking more interest in the market," said an analyst.
With improved half yearly earning disclosure and expectations on the upcoming monetary policy statement (MPS), it ended the downcast tone prevailing in last couple of weeks, commented IDLC Investments, in its weekly market analysis.
Participation increased on the investors' meticulous re-balancing of portfolio ahead of Eid-ul-Fitr, the merchant bank said.
LankaBangla Securities, in its analysis said, the market seems to be getting back some sort of momentum helped by good corporate earnings of listed companies in Q2.
Multinational Companies performed well this quarter. Some of the banks and cement companies also did well. Earnings of some flagship companies like GP, BATBC, Lafarge Surma Cement, Bata Shoe and Heidelberg infused optimism into the investors, the stock broker said.
Most of the companies are yet to declare earnings. Overall earnings by listed companies will steer the market direction after Eid, the stock broker added.
"Declaration of better than expected half-yearly and quarterly earnings of most of the companies stimulated the investors to take position in the market," said International Leasing Securities.
"The investors' expectation regarding the next monetary policy statement also triggered the upbeat market sentiment to some extent," said the International Leasing.
The gainers took a modest lead over the losers as out of 307 issues traded during the week 148 advanced, 116 declined and 43 remained unchanged on DSE floor.
Among the major sectors -- pharmaceuticals was the only sector which closed in the red with 1.69 per cent loss.
All other large cap sectors closed in green. Telecommunication appreciated by a staggering 7.43 per cent - thanks to GP - which gained 7.9 per cent during the week.
Fuel and power and food and allied gained by 2.29 per cent and 1.14 per cent respectively. The financial sector - banks and NBFIs edged up by 0.93 per cent and 0.94 per cent respectively
Seven listed companies - Navana CNG, GP, Marico BD, Sun Life Insurance, Square Pharma, Linde BD and Apex Spinning Mills -- made corporate declaration last week.
The market capitalisation of the DSE went up by 1.47 per cent as it was Tk 2,894.37 billion on the opening day of the week and it stood at Tk 2,936.96 billion on closing day of the week.
Beximco Limited dominated the week's top turnover chart for four weeks in a row, with shares worth Tk 2.13 billion changing hands followed by GP, Square Pharma, Shahjibazar Power and Lafarge Surma Cement.
Shahjibazar Power Company was the week's top gainer, posting a rise of 31.03 per cent while Navana CNG was the week's worst loser, plunging by 9.54 per cent.