Stocks rebound after 2-week fall on bargain hunting

Staff Correspondent | Published: 00:00, Jan 28,2018

 
 

Dhaka stocks rebounded last week after a two-week fall as a section of investors went for bargain hunting targeting banks and Grameenphone with an expectation of better financial disclosures from the entities.
DSEX, the key index of Dhaka Stock Exchange, advanced by 1.53 per cent, or 93.57 points, over the week to close at 6,215.80 points on Thursday after losing 180.61 points in the previous two weeks.
The market opened the week with positive momentum and continued rising as investors went for bargain hunting, market operators said.
The market had declined in the previous two weeks and remained dull last week in terms of turnover as Bangladesh Bank earlier hinted that it might announce a contractionary monetary policy for the second half of the financial year 2017-18 and cut banks’ advanced deposit ratio, they said.
However, a section of investors gained confidence when the media reported on the first trading session of the week that the Association of Bankers, Bangladesh, an organisation of banks’ chief executives, requested the central bank not to cut the banks’ ADR, the operators said.
The association expressed concern that a cut in the ADR might create liquidity crisis at the financial market, they said.
Moreover, some investors went for purchasing shares with an expectation of better financial disclosures for last year, stockbrokers said.
Therefore, the average share prices of all the large capitalised sectors increased over the week while telecommunication and financial sectors led the vibe from the front, they said.
Telecommunication, non-bank financial institution and bank sectors surged by 5.5 per cent, 2.3 per cent and 1.2 per cent respectively.
The share prices of food and pharmaceuticals also increased over the week.
Among the prominent scrips, the share prices of Grameenphone, British American Tobacco and BRAC Bank soared by 5.7 per cent, 3.9 per cent and 3.5 per cent respectively that helped the market rebound in the week, stockbrokers said.
The daily average turnover on the bourse also increased to Tk 449.34 crore last week compared with that of Tk 374.68 crore in the previous week.
‘Issues like the government’s plan to slash tax rate and cooling down of private sector credit growth in the month of December have helped investors cultivate optimism regarding the market,’ said EBL Securities in a weekly market commentary.
Of the 338 companies and mutual funds traded, 146 declined, 160 advanced, and 32 remained unchanged.
DS30, the blue chip index of the DSE, hit an all-time high at 2,241.12 points on Thursday, soaring by 2.84 per cent or 63.57 points over the week.
Shariah index DSES also increased by 1.97 per cent, or 27.52 points, to close at 1,431.44 points.
Square Pharmaceuticals led the turnover chart over the week with it shares worth Tk 183.93 crore changing hands.
Grameenphone, IFAD Autos, Beximco Pharmaceuticals, Paramount Textile, BBS Cables, Dragon Sweater, National Bank, National Tubes and Golden Harvest Agro Industries were the other turnover leaders.
Usmania Glass Sheet Factory gained the most in the week with a 23.37-per cent increase in its share prices, while Oimex Electrode was the worst loser, shedding 7.94 per cent.

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