Stocks soar on PM comments, report on power projects

Staff Correspondent | Published: 23:05, Jan 09,2017

 
 

Dhaka stocks returned to positive strongly on Monday with the key index of Dhaka Stock Exchange, DSEX, crossing 5,200 points mark after October 2014 following prime minister Sheikh Hasina’s assurance to continue her government’s all-out support for the development of the stock market.
Benchmark DSEX increased 1.08 per cent or 55.90 points, to close at 5,214.60 points, the highest after 5,233.82 points on October 21, 2014.
Although there was some profit booking share sales pressure during first half-an-hour of trading, market witnessed investors’ heavy purchasing following the PM’s remark on Sunday, resulting in increase in share prices of more than two-third traded scrips at the end of the session, stockbrokers said.
‘The present government would continue its all-out support for the development of the stock market which would be a ‘dependable source’ of long-term funding in building a developed Bangladesh,’ Hasina said.
Apart from PM’s pledge to continue support for the development of capital market, a media report on Bangladesh Power Development Board’s initiative to award contracts on build-own-and-operate basis nine furnace oil-fired power plants to private companies, including three publicly listed companies, through bidding at different locations across the country, lured capital market investors in purchasing shares of those entities, they said.
Riding on investors’ optimistic purchasing, prices of energy scrips rose by 1.90 per cent on an average.
Supported by Investment Corporation of Bangladesh’s 10 per cent rise, average prices of shares of non-bank financial institutions rose by 5.10 per cent on the day.
On the other hand, prices of only four sectors — telecommunication, jute, paper and printing, and tannery— faced some correction, while rest others remained positive.
Turnover on the bourse increased to Tk 1,246.79 crore compared with that of Tk 1,075.12 crore in the previous trading session.
Of the 326 companies and mutual funds traded, 209 advanced, 74 declined and 43 remained unchanged.
‘After last session’s mild correction, market jumped back on the gaining momentum, with 209 issues advancing, whereas only 74 issues declined,’ IDLC Investments said in its market commentary.
‘Broad index broke major resistance of 5,200 points level with 55.91 points in the green on Monday,’ said LankaBangla Securities in its market report.
‘After a day of correction, index moved straight down to 5,147 points level in the first half-an-hour of the trading session. Index then started to move rapidly in a positive direction and closed at 5,214.60 points level,’ it said.
‘The next major resistance level lies at 5,400 points level,’ the stockbroker said.
DSES, the Shariah index of the bourse, increased 0.95 per cent or 11.61 points, to close at 1,230.21 points on Monday.
The blue-chip index, DS30, rose 0.99 per cent or 18.55 points, to finish at 1,879.12 points.
BEXIMCO led the turnover chart on the day with its shares worth Tk 69.42 crore changing hands.
Shasha Denims, BD Thai Aluminum, Shahjibazar Power Company, Confidence Cement, Appollo Ispat Complex, Beximco Pharmaceuticals, SAIF Powertec, IFAD Autos and Peninsula Chittagong were other turnover leaders.
Investment Corporation of Bangladesh gained the most on the day with a 10 per cent rise in its share prices, while Samata Leather Complex was the worst loser, shedding 6.27 per cent.

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