Dhaka stocks rebound on banking sector surge

Staff Correspondent | Published: 00:05, Apr 19,2018 | Updated: 23:04, Apr 18,2018

 
 

Despite fall in share prices of most of the scrips, the key index of Dhaka Stock Exchange, DSEX, rose sharply on Wednesday as investors turned their focus on large-capitalised banking sector which had remained subdued in previous few trading sessions.
DSEX gained by 0.77 per cent, or 45.04 points, to close at 5,822.99 points on Wednesday after losing 6.71 points in the previous session.
After an early downside move, DSEX began to surge into positive territory as the day progressed as investors went for heavy purchasing of shares of banks, said market operators.
The banking sector scrips remained in negative territory in previous few trading sessions amid declarations of lower-than-expected dividends by some of the banks, they said.
Some banks will declare annual dividends in coming days while they will also unveil financial reports for January-March quarter, they said.
Besides, the share price of another large capitalised scrip, Grameenphone, rose sharply as the company announced to hold its board meeting on financial disclosure of January-March quarter to be held on April 19, 2018.
Investors also received boost from the announcement of the National Board of Revenue chairman Md Mosharraf Hossain Bhuiyan’s made on Tuesday that the existing provision of legalising undisclosed money through investment in construction and purchase of residential building and apartment would continue in the next budget, said a stockbroker.
The banks were the main driver of the uptrend, gaining by 2.90 per cent on the day.
Out of 30 traded bank scrips, share prices of all the banks except Trust Bank advanced on the day.
Besides, average share prices of energy, telecommunication and miscellaneous increased 0.71 per cent, 0.64 per cent and 0.44 per cent respectively.
Among the large capitalised scrips, surge in share prices of Grameenphone, United Power Generation, BRAC Bank and Easter Bank helped the market rebound on the day.
On the other hand, average share prices of non-bank financial institutions, cement and pharmaceuticals declined by 0.78 per cent, 0.77 per cent and 0.36 per cent respectively.
The turnover at the bourse also advanced to Tk 561.48 crore on Wednesday compared with that of Tk 507.76 crore in the previous session.
‘The capital bourse of the country observed a winning session today and edged higher amid optimistic behavior from the investors,’ said EBL Securities in its daily market commentary.
‘Investors remained positive and engaged in taking fresh position on stocks especially from Bank, Telecommunication and Fuel & Power sectors,’ it said.
Of the 335 companies and mutual funds traded on the day, 166 declined, 129 advanced, and 44 remained unchanged.
DS30, the blue-chip index of the DSE, also advanced 0.67 per cent, or 14.62 points, to finish at 2,190.77 points.
Shariah index DSES, however, added 0.15 per cent, or 2.10 points, to close at 1,357.89 points.
Bangladesh Export Import Company led the turnover chart on the day with its shares worth Tk 41.23 crore changing hands.
Al- Arafah Islami Bank, BRAC Bank, United Power Generation, Usmania Glass Sheet Factories, Advent Pharmaceuticals, Alif Industries, LafargeHolcim Bangladesh, Grameenphone and Mercantile Bank were the other turnover leaders.
Exim Bank gained the most with a 6.66-per cent increase in its share prices, while Fareast Finance and Investment was the worst loser, shedding 7.95 per cent. 

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