Stocks extend winning streak for 5th week

Babul Barman | Published: June 06, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

Stocks edged higher for the five straight weeks that ended Thursday as investors followed cautious stance about the national budget.
Finance Minister AMA Muhith Thursday proposed a set of fiscal measures, including increasing the threshold of tax-free dividend income and slashing corporate tax rate of listed companies for fiscal year 2015-16.
The week featured four trading sessions as the market remained closed Wednesday due to holy Shab-e-Barat. Of those, the market closed higher in three sessions while one session saw marginal correction.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 46.72 points or 1.03 per cent to end at 4,591.43 points. Â
The two other indices also closed higher. The DS30 index, comprising blue chips, gained 33.74 points or 1.95 per cent to close at 1,765.18 points. The DSE Shariah Index rose 18.17 points or 1.65 per cent to close at 1,117.60 points.
The port city bourse Chittagong Stock Exchange (CSE) also ended slightly, with its Selective Categories Index - CSCX - gained 24.15 points or 0.28 per cent to close the week at 8,607.15 points.
The total turnover for the week stood at Tk 30.15 billion against Tk 37.36 billion the week before as last week saw four trading sessions instead of previous week's five.
The daily turnover for the week averaged Tk 7.53 billion, registering an increase of 0.88 per cent over the previous week's averaged Tk 7.47 billion.
The investors' attention remained mostly focused on power, pharma and engineering - the sectors that accounted for 26 per cent, 16 per cent and 14 per cent respectively of the week's total turnover.
Analysts said that budgetary expectations coupled with interest rate cut on banks' deposit, savings instruments and calmness in political field spurred stocks rally further.
"Favourable-macro-phenomenon amid political stability assisted the bourse to hold positive trend," said IDLC Investments, in its weekly market analysis.
Some witty investors realised some profits as the index gained more than 500 points last month, said the merchant bank.
"Some investors re-balanced their portfolio to some large-cap stocks, leaving an overall positive indication in the market while some others were followed 'wait and- see' approach to look at what's new in the upcoming budget announcement," said the merchant bank.
Sheltech Brokerage, said, "With the boosting package from the budget most of the stocks are likely to go for a boost in the coming days".
"Index continued to post positive return in last week amid nerviness over measures under Budget FY'16," said LankaBangla Securities, in an analysis.
Week ended with marginal gain as mixed performance across the sectors made the index consolidating around 4,600 throughout the week, the stock broker said.
Among the large-cap sectors, cement registered the highest gain of 6.25 per cent, followed by banks 1.26 per cent and pharmaceuticals 1.80 per cent.
Telecommunication advanced by 0.93 per cent. Food and allied, NBFIs also gained 0.52 per cent and 0.11 per cent respectively. Fuel and power lost 0.43 per cent last week.
Losers, however, took a lead over the gainers as out of 321 issues traded, 189 declined, 106 advanced and 26 remained unchanged on the DSE trading floor.
The market capitalisation of the DSE went up slightly by 0.66 per cent as it was Tk 3,203.43 billion on the opening day of the week and it stood at Tk 3,225.16 billion on closing day of the week.
Summit Power was the week's top turnover leader with shares worth Tk 1.68 billion changing hands during the week followed by KPCL, Beximco, United Power and GP.
Summit Power was also the week's best performer, posting a rise of 28.65 per cent while Savar Refractories was the week's worst loser, plunging by 16.76 per cent.
Â Â Â babulfexpress@gmail.com