Dhaka stocks gain for 2nd day as post-budget momentum lasts

Staff Correspondent | Published: 23:00, Jul 04,2017

 
 

Dhaka stocks advanced for the second day on Tuesday as investors kept injecting fresh fund into sector-specific stocks, especially financial shares amid expectations of better market prospect.
Stockbrokers said positive bank earnings reports and the passage of national budget suspending the new VAT law for two years and lowering concise duty on bank balance encouraged investors to make fresh investment at the market.
The key index of Dhaka Stock Exchange, DSEX, advanced by 0.59 per cent, or 34.12 points, to close at 5,760.50 points on Tuesday, the highest after April 4 when the index hit 5,777 points.
The benchmark index gained 298.45 points in last nine trading sessions with a negative session.
The market maintained the bullish vibe on the day as share prices of the financial stocks continued surging on the back of the reports that operating profits of most the banks increased in the January-June period, stockbrokers said.
The prices of non-bank financial institution and bank stocks rallied by 1.74 per cent and 1.09 per cent respectively on the day.
The turnover at the DSE, on the other hand, crossed the Tk 1,200-crore mark after March 22 with an expectation of better market prospect with the start of the new financial year on July 1, stockbrokers said.
The turnover climbed to Tk 1,223.74 crore from that of Tk 1,046.31 crore in the previous trading session.
Besides the financial sector, telecommunication and cement also increased on the day.
The textile stocks also got investors’ attention following the corporate tax cut for the sector by 3 per cent from the proposed 15 per cent in the national budget, they said.
On the other hand, Investment Corporation of Bangladesh said earlier that it would inject Tk 4,500 crore in the capital market in the current financial year that pulled many investors to the market.
Grameenphone, Lafurge Surma and BRAC Bank also kept their positive marks on the day.
DS30, the blue-chip index of the DSE, added 0.40 per cent, or 9.06 points, to close at 2,114.42 points after rising by 26.61 points in the previous session.
The Shariah index, DSES, gained 0.28 per cent, or 3.77 points, to finish at 1,314.14 points.
Of the 330 companies and mutual funds traded, 195 advanced, 107 declined and 28 remained unchanged.
Like the previous session, LankaBangla Finance led the turnover chart on Tuesday with its shares worth Tk 42.60 crore changing hands.
Regent Textiles, Prime Bank, Argon Denims, Lafurge Surma, Fuwang Foods, Investment Corporation of Bangladesh, Paramount Textiles, Bangladesh Export Import Company and United Power Generation were the other turnover leaders.
Simtex Industries gained the most with a 9.79-per cent increase in its share price, while Beach Hatchery was the worst loser, shedding 8.67 per cent. 

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