Dhaka stocks extend gaining streak to 3rd week on bank gains

Staff Correspondent | Published at 12:00am on August 19, 2018

Dhaka stocks advanced in last week, extending the gaining streak to the third consecutive week, as financial stocks and Grameenphone soared on the investors’ increased attention to the scrips.
The week was shortened to four trading sessions at the Dhaka Stock Exchange due to a public holiday on August 15.
DSEX, the key index of the DSE, advanced by 1.12 per cent, or 60.74 points, over the week to finish at 5,467.74 points on Thursday, the last trading session of the week.
The index gained 162 in last three weeks.
The market was mostly negative in the first two trading sessions of the week because of pre-Eid sales pressure from investors, market operators said.
However, the market surged in the last two sessions of the week as investors went for fresh investments amid optimisms over post-Eid market prospect, they said.
Eid-ul-Azha, one of the biggest religious festivals of Muslims, will be celebrated across the country on August 22 and trading at the DSE will remain closed from August 21 to 25 due to the Eid holidays and weekly holidays.
Although the losers surpassed the gainers in the week, the market posted modest gain due mainly to the investors’ heavy purchasing of financial stocks.
The share prices of banks and non-bank financial institutions soared by 5.2 per cent and 3.1 per cent respectively in the week.
Out of the 30 traded bank scrips, all but one advanced while out of the 23 NBFIs, 19 advanced, just two declined and two remained unchanged.
The investors’ focus shifted to bank stocks after the DSE declared to take tough action against 15 more junk companies after delistisitng two such firms, market operators said.
Besides the financial scrips, the share prices of Grameenphone shot by 3 per cent after hitting more than a year low in the previous week ended on August 9.
The media reported on Thursday that the Bangladesh Telecommunication Regulatory Commission estimated that GP’s monthly revenue would increase by 54.93 per cent to Tk 617.04 crore from Tk 398.26 crore because of the recently introduced uniform minimum call rate at Tk 0.45 per minute that overshadowed the BTRC’s claim on the mobile operator of Tk 11,530 crore in dues to the government.
On the other hand, the average share prices of the textile sector dropped by 4.2 per cent in last week after the sector surged by 6 per cent in the previous week as investors went for profit booking from the sector.
The share prices of miscellaneous, food and pharmaceutical sectors shed 3.85 per cent, 1.50 per cent and 1.07 per cent respectively.
The daily average turnover on the bourse dropped to Tk 656.89 crore in last week from Tk 687.48 crore in the previous week.
‘Positive macro indicators like robust growth in remittance and some sector-specific news like uniform call rate affecting large-cap scrips including GP have turned out to be decisive in closing the week on positive note,’ said EBL Securities in its daily market commentary.
Out of the 341 traded issues, 168 declined, 161 advanced and 13 issues remained unchanged.
DS30, the blue-chip index of the DSE, soared by 1.16 per cent, or 21.93 points, to close at 1,915.27 points over the week.
Shariah index DSES added 0.08 per cent, or 1.04 points, to close at 1,246.90 points.
BBS Cables led the turnover chart with its shares worth Tk 130.06 crore changing hands.
IFAD Autos, Shepherd Industries, Saiham Textile Mills, Hamid Fabrics, Dragon Sweater, AB Bank, Legacy Footwear, LankaBangla Finance and United Power Generation Company were the other turnover leaders.
MIDAS Financing gained the most in the week with a 22.60 -per cent increase in its share prices, while Padma Islami Life Insurance was the worst loser, shedding 22.08 per cent.