Bank shares lead stocks rally for 3rd week

Staff Correspondent | Published: 23:00, Aug 12,2017 | Updated: 01:39, Aug 13,2017

 
 

Dhaka stocks gained last week, extending bull run to the third week, despite a fall in share prices of most of the scrips as a surge in bank shares continued for the third week on investors’ optimistic buying of bank shares surrounding their corporate earnings.
The key index of Dhaka Stock Exchange, DSEX, increased 0.36 per cent, or 21.36 points, over the week to close at 5,901.81 points on Thursday.
The core index advanced 119.34 points in the previous three weeks.
The market started the week upbeat, breaking the psychological barrier of 5,900 points that slowed down from the next session as investors became concerned about the market’s peak position, market operators said.
They said that continuous surge in most of the share prices kept pushing investors to inject funds into the capital market.
Although the profit booking tendency from many investors was obvious as most of the traded scrips fell, the market closed positive mainly due to the surge in share prices of bank companies, they said.
Better earnings declaration and comparatively lower prices of most of the banks bolstered investors to purchase their shares, stockbrokers said.
The average share prices of bank sector increased 1.43 per cent over the week while they gained 7.81 per cent in the previous three weeks.
The record making rally in the market drew attention of many investors who were in the side-line for months, they said.
As a result, the average share prices of engineering and telecommunication also joined with the bank rally, gaining by 2.44 per cent and 1.44 per cent respectively on the week.
Of the 10 market capital leaders, 7 slumped and just 3 advanced due to cautious profit taking approach of the investors, they said.
Due to the cautious trading of the investors, the daily average turnover on the bourse declined 8.31 per cent to Tk 973.89 crore compared with that of Tk 1,064.38 crore in the previous week.
Of the 334 companies and mutual funds traded, 185 declined 129 advanced, and 20 remained unchanged.
DS30, the blue chip index of the DSE, however, dropped 0.28 per cent or 2.60 points to close at 2,125.72 points over the week.
The Shariah index of the bourse, DSES, added 0.46 per cent or 2.91 points to close at 1,314.54 points.
‘The positive earnings declaration of several large cap stocks along with dividend declaration of some major stocks could be the reason for such gain in index this week,’ LankaBangla Securities said in its weekly market report.
C & A Textiles led the turnover chart in the week with its shares worth Tk 187.64 crore changing hands.
BBS Cables, IFIC Bank, City Bank, IFAD Autos, LankaBangla Finance, Mercantile Bank, Generation Next Fashions, Fu Wang Foods and Fortune Shoes were other turnover leaders.
BBS Cables gained the most during the week with a 29.89-per cent increase in its share price, while Information Services Network was the worst loser, shedding 14.29 per cent.

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