Dhaka stocks rise for 3rd week on budget expectations

Staff Correspondent | Published: 22:51, Jun 15,2019

 
 

Dhaka stocks in the past week gained for the third consecutive week with an increased participation of investors amid budget-centric expectations.

Finance minister AHM Mustafa Kamal on Thursday placed before parliament the proposed national budget for the fiscal year of 2019-20.

DSEX, the key index of Dhaka Stock Exchange, gained 1.80 per cent, or 96.56 points, over the week to close at 5,474.31 points on Thursday, the last trading session of the week.

The DSEX gained 243.5 points in last three weeks.

The market in the week witnessed a positive run in all but one session as investors kept buying shares amid expectations centring the national budget, market operators said.

They said investors injected funds in the capital market as they expected some incentives for the stock market in the budget.

Investors’ interest in sector-specific scrips also fuelled the price hike of the scrips, said market operators.

The average share prices of all the sectors except bank increased in the week.

Share prices of life insurance advanced by 12.29 per cent, general insurance by 6.72 per cent, energy by 4.13 per cent, telecommunications by 3.28 per cent and non-bank financial institutions by 2.80 per cent.

The index stayed flat in the second half of the week as investors rebalanced their portfolios prior to the trading debut of Silco Pharmaceuticals and budget announcement.

Some investors bought shares of Silco Pharm which made its debut on the country’s two stock exchanges on Thursday.

Share prices of Silco Pharma soared by 152 per cent to close at Tk 25.1 a share on Thursday. The issue price of the company’s shares was Tk 10 each.

Among the large capitalised scrips, share prices of United Power Distribution Company, British American Tobacco, Grameenphone, BRAC Bank and Khulna Power Company advanced in the week.

The daily average turnover on DSE rose to Tk 492.67 crore in the past week from Tk 368.29 crore in the previous week.

Out of the 350 issues traded, 260 advanced, 70 declined and 23 remained unchanged.

DS30, the blue-chip index of DSE, advanced by 1.57 per cent, or 29.70 points, to close at 1,918.73 points.

Shariah index DSES gained 2.45 per cent, or 29.80 points, to finish at 1,244.06 points.

United Power Generation Company led the turnover chart with its shares worth Tk 96.76 crore changing hands in the week.

BBS Cables, JMI Syringe, National Life Insurance, Eastern Housing, Khulna Power Company, SK Trims, BRAC Bank, British American Tobacco and Bangladesh Shipping Corporation were the other turnover leaders.

Global Insurance Company gained the most in the week with a 31.31-per cent increase in its share prices while Mercantile Bank was the worst loser, shedding 13.89 per cent.

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