Dhaka stocks rebound on foreign investment report

Staff Correspondent | Published: 23:21, Jul 09,2017 | Updated: 01:29, Jul 10,2017

 
 

Dhaka stocks rebounded on Sunday after a fall in the previous session as recent market surge coupled with report of increase in foreign investment in stocks prompted investors to inject fund in the market.
The key index of the bourse, DSEX, increased 0.42 per cent, or 24.63 points, to close at 5,774.29 points on Sunday after falling 32.99 points in the previous session.
The market regained its positive momentum at the very beginning of the session, rising 20 points within 40 minutes of the session that remained in the positive trajectory for the whole session, stockbrokers said.
They said that the market rebounded on the day as investors went on buying shares amid optimism following reports of buoyant growth of foreign investments.
The news reports on net foreign investment at DSE stocks gained by five-fold in the fiscal year 2016-17 compared to that in the previous year encouraged investors to invest in the market, they said.
According to DSE data, the net foreign investment totalled Tk 2,268.46 crore in FY17 while it was at Tk 451.64 crore in FY16.
The upbeat trend of the market, prevailing for few weeks, attracted many fresh investors to the market, market operators said.
The benchmark index gained 295 points in the last 11 trading sessions with two negative sessions.
The passage of national budget by changing some provisions including suspending new VAT law and cutting excise duty rate continuously drew investors’ attention to the market, stockbrokers said.
The textile stocks 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. The government also decided to reduce the tax at source on export of RMG, they said.
As a result share prices of the sectors gained 2.11 per cent and led the turnover chart of the day.
Non-financial sectors increased on the day while surge in share prices of engineering, pharmaceuticals and energy stocks contributed most in lifting the market, stockbrokers said.
‘The capital bourse of the country exerted a winning spell in the first session of the week as investors reacted positively to some key macroeconomic news.’ said EBL Securities in its daily market reports.
The turnover increased as well to Tk 1,160.41 crore from that of Tk 1,005.44 crore in the previous trading session.
DS30, the blue-chip index of the DSE, gained 0.22 per cent, or 4.7 points, to close at 2,108.27 points.
The Shariah index, DSES, gained 0.54 per cent, or 7.10 points, to finish at 1,314.07 points.
Of the 329 companies and mutual funds traded, 188 advanced, 100 declined and 39 remained unchanged.
Like the previous session, Keya Cosmetics led the turnover chart with its shares worth Tk 78.06 crore changing hands.
MJL Bangladesh, Confidence Cement, CNA Textiles, Bangladesh Export Import Company, Fu Wang Foods, LankaBangla Finance and Saif Powertec were the other turnover leaders.
Peninsula Chittagong gained the most with a 8.58 per cent increase in its share price, while Asia General Insurance Company was the worst loser, shedding 5.17 per cent. 

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