Stocks barely gain for 2nd week riding on banking sector

Staff Correspondent | Published at 10:32pm on August 11, 2018

Despite fall in share prices of two-thirds of scrips, Dhaka stocks gained in the past week mainly due to a surge in share prices of banking sector as the bourse took a hard line against 15 more junk companies.
DSEX, the key index of Dhaka Stock Exchange, added 0.13 per cent or 7.21 points over the week to finish at 5,407.01 points on Thursday, the last trading session of the week after gaining 94.62 points in the previous week.
The market remained negative in the first two sessions of the week but started to gain from the third session as investors turned their focus on bank stocks amid the easing of students’ protest.
The students’ protests that began after two students were killed by a speeding bus in Dhaka on July 29 took a violent turn on August 04 and the situation worsened in the following two days. The protests, however, began to wane on August 7.
Besides, a section of investors turned their focus to bank stocks after the DSE moved to crack down on 15 junk companies that have not been providing dividends for more than five years and the companies have become unqualified to remain listed at the bourse as per its listing regulations.
Bank sector led the week’s gains with a surge in average share prices of the sector by 3 per cent.
Beside bank, average share prices of textile, food and energy sectors gained 6 per cent, 0.8 per cent and 0.3 per cent respectively.
On the other hand, share prices of Grameenphone hit more than a year low after losing 7 per cent in the past week with the media reports that the Bangladesh Telecommunication Regulatory Commission would ask GP to pay the government Tk 11,530 crore in dues as an audit found the company did not pay the amount over the years.
Average share prices of telecommunication, cement, non-bank financial institutions and pharmaceuticals dropped by 3.4 per cent, 2.2 per cent, 1.6 per cent and 0.3 per cent respectively.
Before the two weeks’ gain, the DSEX lost 136 points in the five consecutive weeks amid concern on the financial market.
The daily average turnover of the bourse increased little to Tk 687.48 crore in the past week from Tk 685.80 crore in the previous week.
‘Active participation of investors from both side of the fence during this week indicated that investors regained confidence towards the capital market,’ said EBL Securities in its daily market commentary.
Out of the 341 traded issues, 211 declined, 103 advanced and 26 issues remained unchanged.
DS30, the blue chip index of the DSE, however, lost 0.31 per cent, or 5.90 points, to close at 1,893.34 points over the week.
Shariah index DSES, shed 1.29 per cent, or 16.24
points, to close at 1,245.86 points.
BBS Cables led the turnover chart with its shares worth Tk 164.33 crore changing hands.
AB Bank, United Power Generation Company, Saiham Textile Mills, Simtex Industries, Dragon Sweater, Legacy Footwear, Paramount Textile, Far Chemical Industries and Monno Ceramics were the other turnover leaders.
Prtovati Insurance Company gained the most in the week with a 19.57 -per cent increase in its share prices, while Savar Refractories was the worst loser shedding 30.60 per cent.