Stocks rebound after 3-week fall

Staff Correspondent | Published: 00:07, Nov 05,2017

 
 

Dhaka stocks rebounded last week after fall in three consecutive weeks as investors went for fresh investments riding on better financial announcements.
DSEX, the key index of Dhaka Stock Exchange, advanced 1.34 per cent, 80 points, over the week to close at 6,099.02 points on Thursday after losing 184 points in the previous three weeks.
The equity market began the week with negative move that rebounded next session and remained positive during the rest of the sessions as investors got the enthusiasm back amid the companies’ financial disclosers.
They said that most of the companies’ announced dividends and earnings results were close to the expectation of the investors.
As a result, better earnings and dividends provoked investors to inject fresh fund in the capital market, they said.
Most of the banks also disclosed better earnings including Rupali Bank, City Bank, Prime Bank and Southeast Bank that attracted most investors to the bank sectors.
Therefore, an average share price of banks increased by 1.1 per cent over the week that contributed most to rebound the market.
Moreover, Khulna Power Company, Shajibazar Power and Olympic industries provided better dividends for the year 2017 that resulted in a surge in their share prices on the week.
Besides, textiles, energy and pharmaceuticals gained 1.7 per cent, 1.63 per cent and 1.6 per cent respectively.
On the other hand, Social Islami Bank was the worse loser of the day, declining by 10 per cent on the week after the media reported that S Alam Group took control of the bank’s board as a seventh sequential invasions of banks that rose concern among economists and investors.
Grameenphone, BRAC Bank and British American Tobacco faced correction after surge in the previous week.
Non-bank financial institutions, telecommunication and Food declined by 1.1 per cent, 0.8 per cent and 0.6 per cent respectively.
As a result, the daily average turnover on the bourse also advanced by 6.28 per cent to Tk 605.52 crore compared with that of Tk 569.76 crore in the previous week.
Besides, food, telecommunication and engineering increased by 5.8 per cent, 4.8 per cent and 0.4 per cent respectively.
‘The investors were optimistic regarding the market as June closing stock declared earnings and dividend closely to the expectation of the investors,’ said EBL Securities.
‘Investors’ optimism kept the index moving upward gradually at the end of every session,’ it said.
Of the 335 companies and mutual funds traded, 192 advanced, 127 declined, and 17 remained unchanged.
DS30, the blue chip index of the DSE, however, plunged 1.27 per cent, or 27.57 points, to close at 2,201.46 points over the week.
The Shariah index of the bourse, DSES, added 0.96 per cent, or 12.63 points, to close at 1,329.11 points.
LankaBangla Finance led the turnover chart in the week with its shares worth Tk 133.58 crore changing hands.
BRAC Bank, City Bank, Bangladesh Export Import Company, BBS Cables, United Commercial Bank, IDLC Finance, Saif Powertec, Khulna Power Company and National Bank were the others turnover leaders.
Salvo Chemical Industry gained the most in the week with 16.92 per cent increase in its share price, while Hakkani Pulp and Paper was the worst loser, shedding 29.67 per cent. 

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