Dhaka stocks on fire, cos linked with cabinet members soar

Staff Correspondent | Published: 00:00, Jan 09,2019

 
 

Dhaka stocks rocketed on Tuesday with more than 100 points increase, taking the total gain to 553 points in last 13 days as investors continued buying shares, especially those companies which are linked with some members of the new cabinet, market operators said.
DSEX, the key index of Dhaka Stock Exchange, soared by 2.04 per cent, or 115.58 points, to close at 5,770.77 points on Tuesday after losing 31.82 points in the previous session.
The key index gained 553 points in last 13 sessions despite a negative session on Monday.
The DSEX began to gain from the very beginning of the day and increased sharply soon after as investors went for buying shares heavily amid expectations over the new cabinet members having connection with the country’s capital market, market operators said.
They said that a number of businesspersons were elected members of parliament in the December 30 national polls and some of them were appointed as ministers.
The ministers have direct or indirect link with some listed companies that encouraged investors to buy shares of those companies, market operators said.
They said investors anticipated that financial health of those companies would improve and so would the share prices of the companies.
Share prices of Alif Manufacturing Company, which bought CMC Kamal Limited in 2014, soared by 35.78 per cent in last four trading sessions after AHM Mustafa Kamal, the then owner of majority stakes of CMC Kamal, was elected MP in the polls and appointed finance minister.
Although Mustafa Kamal and his family members have no stakes in Alif Group, there was a rumour at the market that the newly appointed finance minister and his family members still had link with Alif that pulled investors to the company in recent days, said market operators.
Share prices of Alif finished at Tk 12.9 on Tuesday, which was at Tk 9.5 on January 2.
Share prices of Asia Pacific General Insurance soared by 12.35 per cent in last two days after Mustafa Kamal was appointed as finance minister.
Mustafa Kamal’s wife Kashmiri Kamal is vice-chairman of the company and daughters Nafisa Kamal and Kashfi Kamal are directors of the company.
Share prices of Aramit gained 3.67 per cent to Tk 428.5 in last two trading sessions and share prices of United Commercial Bank soared by 8.52 per cent to finish at Tk 19.1 in last five trading sessions.
Family members of new land minister, Saifuzzman Chowdhury, own the two companies.
Besides, share prices of Jamuna Bank surged by 15.90 per cent in last five trading sessions.
Golam Dastagir Gazi whose family members have stakes in the bank was appointed as textiles and jute minister.
Share prices of Beximco and Beximco Pharmaceuticals continued surging in recent days.
Salman F Rahman, vice-chairman of Beximco Group, was elected MP in the polls.
The market got momentum after the December 30 elections as political tensions eased after the polls, market operators said.
In the national polls, the Awami League-led ruling alliance won 288 seats while the opposition alliance led by Bangladesh Nationalist Party secured just seven.
The turnover on the bourse advanced to Tk 1,010.03 crore on Tuesday compared with that of Tk 965.53 crore in the previous trading session.
Share prices of all the large capitalised scrips increased on the day while the financial sectors led the surge from the front with 4.1 per cent and 3.1 per cent gain in share prices of banks and non-bank financial institutions respectively.
Share prices of all the 30 bank scrips gained while out of the 23 NBFIs traded, 17 advanced, two declined and four remained unchanged.
Share prices of telecommunication, energy and pharmaceutical sectors also advanced on the day.
‘The capital market closed Tuesday with high positive tune observing a sharp winning spell throughout the session amid hopes and excitement among investors,’ said EBL Securities in its daily market commentary.
Of the 336 companies and mutual funds traded on Tuesday, 238 advanced, 85 declined and 23 remained unchanged.
DSE blue-chip index DS30 jumped by 1.89 per cent, or 37.29 points, to close at 2,001.18 points.
Shariah index DSES added 1.43 cent, or 18.51 points, to finish at 1,308.06 points.
BRAC Bank led the turnover leaders with its shares worth Tk 23.00 crore changing hands on the day.
JMI Syringe, Bangladesh Export Import Company, Alif Manufacturing Company, Olympic Industries, United Power Generation Company, Active Fine Chemicals, IFAD Autos, BBS Cable and Dhaka Bank were the other turnover leaders.
Rupali Bank gained the most on the day with a 9.89-per cent increase in its share prices, while Delta Spinners was the worst loser, shedding 9.87 per cent.

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