Share prices end higher

Stocks posted modest gains last week that ended Thursday as investors were on a spree buying shares of banks, non-bank financial institutions (NBFIs) and power sector companies.

The buyers evinced interest in banks, fuel and power and NBFI stocks as the sectors gained by 2.68 per cent, 1.87 per cent and 1.83 per cent last week.

However, most of the investors seemed cautious and kept an eye on the market movement ahead of the budget approval that will take place tomorrow (Sunday).

The week saw five trading sessions as usual and the first session saw a marginal loss while the last four closed positive.

Week-on-week, the DSEX, the prime index of Dhaka Stock Exchange (DSE), went up by 81.02 points or 1.87 per cent and crossed the threshold of 4,400 points to close at 4,409.43.

The other two indices also closed positive. The DS30 comprising blue chips moved up by 13.161 points or 0.82 per cent to close at 1,616.57 points. The DSE Shariah Index (DSES) gained 13.25 points or 1.13 per cent to close at 1,006.22 points.

The port city bourse, Chittagong Stock Exchange (CSE), also rose last week with its Selective Categories Index - CSCX-gaining 136.49 points or 1.65 per cent to close the week at 8,401.37 points.

The week's total turnover stood at Tk 14.37 billion on the main bourse of the country against Tk 13.97 billion in the previous week.

The daily turnover for the week averaged Tk 2.87 billion, registering an increase of 2.85 per cent over the previous week's average of Tk 2.79 billion.

Lanka Bangla Securities said: "Recent gains in the market can be called volatile. Only few fundamental stocks grasped the interest of investors".

Market resilience remained weak due to edginess hovering around the aftermath of the post-budget economic condition in the capital market, said the stock broker.

The benchmark index got some attraction of value investors as stocks were available on discount after the previous week's 80-point, said the stock broker.

The central bank raised the cash reserve requirement (CRR) for banks from 6.0 per cent to 6.5 per cent last week. But the increase in the CRR did not have much impact on the capital market as there was already excess liquidity in the banking system, said the stock broker.

"Substantial profit booking tendency reversed and subsequently turned into a motivation for investment last week," commented IDLC Investments, in its weekly market analysis.

Most of the individual investors started positioning in the hope of getting tax rebate on their income. They preferred selective lucrative issues, fundamentally as their safe investment, said the merchant bank.

"The market absorbed a significant downhill in last several sessions and bargain hunters started stepping forward and re-assessed significant upside potentials," the merchant bank said.

The market remained positive as out of 305 issues traded during the week, 210 advanced, 79 declined and 16 issues remained unchanged on the DSE floor.

All the major sectors edged up except telecommunication as the largest sector lost 0.56 per cent last week. Banks were the main market mover. It advanced 2.68 per cent. Fuel and power and NBFIs gained 1.87 per cent and 1.83 per cent respectively. Pharmaceuticals gained 1.06 per cent last week.

There were four listed companies-Meghna Life Insurance, National Life Insurance, Reckitt Benkiser (BD) Ltd. and Bangladesh Services Ltd-made corporate declarations last week.

Meghna Life Insurance declared 20 per cent cash and 10 per cent stock dividends, National Life Insurance recommended 20 per cent cash and 38 per cent stock dividends, Reckitt Benkiser (BD) Ltd declared 275 per cent interim cash dividend and Bangladesh Services Ltd declared 15 per cent stock dividend.

The market capitalisation of the DSE went up slightly by 0.99 per cent as it was Tk 2,866.26 billion on the opening day of the week and it stood at Tk 2,894.54 billion in the closing session of the week.

Lafarge Surma Cement topped the week's turnover chart with shares worth Tk 1.25 billion changing hands during the week followed by GP, BSRM Steels, Square Pharmaceuticals and BSCCL.

AIBL First Islamic Mutual Fund was the week's top gainer, posting a rise of 18.03 per cent while Delta Life Insurance was the week's worst loser, slumping by 19.40 per cent.