Stocks gain for 3rd week on Bangladesh Bank move, post-Eid hope

Staff Correspondent | Published: 00:00, Aug 11,2019


Dhaka stocks gained in the past week, three weeks in a row, as investors, encouraged by the Bangladesh Bank’ move to improve liquidity situation in the country’s non-bank financial institutions, continued buying shares before Eid holidays.

A nine-day closure at the Dhaka Stock Exchange and the Chittagong Stock Exchange began on August 9 due to Eid-ul-Azha and weekly holidays.

DSEX, the key index of the DSE, gained 0.61 per cent, or 31.68 points, over the week to close at 5,201.42 points on August 8, the last trading session of the week.

The DSEX gained 70.72 points in last three weeks.

The market gained in most of the sessions in last week as investors continued buying shares amid expectations that the market would maintain the trend after Eid-ul-Azha, market operators said.

Eid-ul-Azha, one of the largest religious festivals of the Muslims, will be celebrated across the country tomorrow.

Investors expected that the market scenario might improve further after the Eid vacation as companies of which financial year ended in June would declare dividends and earnings results.

Besides, Bangladesh Bank on August 5 decided to enhance borrowing capacity of NBFIs from the call money market that encouraged some investors to buy financial scrips.

Moreover, most of the banks declared profit growth for the January-June period compared with that for the same period in the previous year that drew investors’ attention.

Therefore, bank and NBFI sectors gained 1.3 per cent and 0.8 per cent respectively in last week.

EBL Securities in its weekly market commentary said that the DSE bounced back to 5,200 points and investors got back confidence due to supportive policy of Bangladesh Bank over NBFIs’ borrowing capacity from the call money market.

The share prices of controversial Coppertech Industries shot up abnormally on its debut trading day on August 5.

The prices of the company’s shares increased by 348 per cent to close at Tk 44.80 a share on August 5. But, the share prices of the company closed at Tk 39.10 a share on August 8.

The share prices of Grameenphone decreased by 5.8 per cent over the week amid regulatory measures against the mobile operator over audit claim payment.

According to media reports, Bangladesh Telecommunication Regulatory Commission may ask Grameenphone to explain why its licence would not be revoked for violating the licensing conditions by not paying the telecom regulator’s audit claim.

The commission also moved to stop renewing the existing voice and data packages of Grameenphone.

The daily average turnover on DSE increased to Tk 473.91 crore in last week from Tk 440.44 crore in the previous week.

On the other hand, the average share prices of mutual fund sector plunged by 2.7 per cent in the week as most of the funds declared lower-than-expected dividends for the year ended June this year.

Out of the 355 issues traded in the week, 141 declined, 195 advanced and 19 remained unchanged.

DS30, the blue-chip index of DSE, however, lost 0.04 per cent, 0.75 points, to close at 1,837.75 points.

Shariah index DSES added 0.001 per cent, or 0.03 points, to finish at 1,192.22 points.

United Power Generation Company led the turnover chart with its shares worth Tk 101 crore changing hands in the week.

Monno Ceramic Industries, Bangladesh Shipping Corporation, JMI Syringe, Fortune Shoes, Coppertech Industries, Square Pharmaceuticals, Khulna Power Company, Monno Jute Stafflers and Indo-Bangla Pharmaceuticals were the other turnover leaders.

Pragati Life Insurance gained the most in the week with a 26.48-per cent increase in its unit prices while SEML IBBL Shariah Fund Balanced Fund was the worst loser, shedding 25.86 per cent.

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