Dhaka stocks’ surge continues as Lafarge soars on merger decision

Staff Correspondent | Published: 21:56, Dec 15,2016

 
 

Dhaka stocks declined for the third trading session on Thursday with the turnover crossing 1,000 crore market for the consecutive second trading session amid surge in Lafarge Surma Cement’s share prices after its decision to purchase entire shares of Holcim Cement (Bangladesh) Limited.
The key index of Dhaka Stock Exchange, DSEX, increased 0.38 per cent or 18.80 points, to finish at 4,925.72 points, the highest after 4,956.09 points on January 15, 2015.
Turnover on the bourse remained above Tk 1,000 crore mark but declined a bit to tk 1,023.05 crore compared with that of Tk 1,064.63 crore in the previous trading session.
Despite the decline in share prices of most traded scrips, market advanced on Thursday amid increase in share prices of some large-capitalised companies’ scrips, especially the Lafarge Surma Cement, stockbrokers said.
With a 6.16 per cent or Tk 5.10 rise in share prices of the Lafarge, a Tk 1,161.37 crore paid-up capital company, the entity was also the most traded scrips on Thursday with its shares worth Tk 77.61 crore changing hands.
Investors’ heavy attention on Lafarge shares was a result of the entity’s board decision to purchase full shares of HBL as part of group level merger of Lafarge SA of France and Holcim Limited of Switzerland.
Investors, who were making investments on the scrip, were expecting that the company’s performance in terms of profit generation might improve in the coming days, once combined operation of the entities starts, stockbrokers said.
Of the 321 companies and mutual funds traded, 118 advanced, 155 declined and 48 remained unchanged.
‘The third trading session of this week saw the market regain its upward momentum with an 18.8 point increase,’ said LankaBangla Securities in its market report.
‘The day saw the broad index move beyond the 4,900 points resistance level and reach 4,925 points level,’ it said.
Other than a few sectors, cement, ceramic, travel and leisure, general insurance, banks, non-bank financial institutions and telecommunication saw negative price movement, said LankaBangla.
‘However, index still moved positively due to Lafarge Surma Cement, being a large cap company, gaining 6.16 per cent along with leading the turnover list,’ it said.
DS30, the blue-chip index of the bourse, increased to 1,806 points, increasing 0.48 per cent or 8.64 points.
The Shariah index, DSES, increased 0.26 per cent or 3.15 points, to close at 1,172.18 points on Thursday.
Apart from Lafarge, Bangladesh Building System was the second highest traded scrip of the day with its shares worth Tk 54.02 crore changing hands.
Ratanpur Steel Re-Rolling Mills, FAR Chemical Industries, Eastern Housing, Keya Cosmetics, Appollo Ispat Complex, LankaBangla Finance, IFAD Autos and CMC Kamal Textile Mills were other turnover leaders.
Islamic Finance and Investment gained the most on the day, while Western Marine Shipyard was the worst loser.

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