Dhaka stocks rebound on banks’ hike

Staff Correspondent | Published: 22:52, Sep 13,2017

 
 

Dhaka stocks rebounded on Wednesday after a decline in the previous two sessions despite a fall in the share prices of most of the scirps as banks continued gaining amid an increased participation from investors.
On the day, the turnover on the Dhaka Stock Exchange increased to Tk 1,424.36 crore, the highest since January 25 this year when it was at Tk 1,524.93 crore.
The turnover, a key indicator of the investors’ participation, was at Tk 1,203.70 crore on Tuesday.
The DSE’s key index, DSEX, advanced 0.57 per cent, or 35.17 points, to finish at 6,184.57 points on Wednesday after losing 18 points in the previous two trading sessions.
The market began with a bullish vibe that sustained till end of the session without any resistance as bank shares extended their bullish trend to another session, stockbrokers said.
Although most of the scrips declined on the day, the market came up with a bullish ending as a result of an increased share purchasing from bank and telecommunication sectors, they said.
The bank shares led the surge on the day with holding 43 per cent of the day’s total turnover, they said.
The average share prices of telecommunication, banks and pharmaceuticals decreased 2.36 per cent, 1.77 per cent and 0.63 per cent respectively that helped the market rebound on Wednesday.
Analysts opined that it was not expected to notice surge in share prices of banks as they were plagued with loss and scandals in recent time.
On the other hand, most of the scrips declined on the day as investors went for profit taking after increasing the share prices of their portfolios, market operators said.
The investors cashed some profit as they assumed that the equities could fall from higher level, they said.
As a result of investors’ prudent move, the average share prices of cement, engineering and energy plunged 1.4 per cent, 0.8 per cent and 0.7 per cent respectively.
Among the prominent stocks, Grameenphone, Square Pharmaceuticals and Rupali Bank were the highest positive index movers of the day.
As the market hit records for several time in recent weeks, investors, who were on the sideline observing the market, returned on the trading floor, brokers said.
‘The capital bourse of the country observed a winning session after experiencing a slight correction in the previous sessions,’ said EBL Securities in its daily market commentary.
‘Market started on the day with an upswing movement as investors kept on taking fresh positions on stocks, specially from Bank sector,’ it said.
DS30, the blue-chip index of the DSE, gained 0.51 per cent, or 11.41 points, to close at 2,212.14 points.
The Shariah index, DSES, added 0.48 per cent, or 6.64 points, to finish at 1,372.29 points.
Of the 331 companies and mutual funds traded, 174 declined, 125 advanced and 32 remained unchanged.
LankaBangla Finance led the turnover chart with its shares worth Tk 68.89 crore changing hands.
Al-Arafah Islami Bank, City Bank, First Security Islami Bank, Prime Bank, Mercantile Bank, Square Pharmaceuticals, Grameenphone, National Bank and IFIC Bank were the other turnover leaders.
Rupali Bank increased the most with a 9.85-per cent rise in its share prices, while Legacy Footwear was the worst loser, shedding 7.93 per cent.

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