Dhaka stocks rally for 4th week on post-Eid expectation

Staff Correspondent | Published at 12:05am on August 26, 2018

Dhaka stocks soared in the past week, shortened by Eid holidays, extending the gaining streak to the four consecutive weeks, as investors continued buying shares, especially those of financial stocks amid post Eid expectation.
The week was shortened to just two trading sessions at the Dhaka Stock Exchange as Eid-ul-Azha, one of the biggest religious festivals of Muslims, was celebrated across the country on August 22 and trading at the DSE remained closed from August 21 to 25 due to the Eid holidays and weekly holidays.
DSEX, the key index of the DSE, advanced 1.89 per cent, or 103.45 points, over the week to finish at 5,571.20 points on Thursday, the last trading session of the week. The core index gained 266 in last four consecutive weeks.
The market was vibrant during the two sessions of the week because of the investors’ heavy share buying from the financial sectors.
Despite having any positive news, the financial stocks continued to pull investors’ attention as the stock exchanges and the market regulator continued its punitive measures against low profiled wrong-doing companies.
Following the DSE tough move against 15 junk companies after delisting two such firms, the Bangladesh Securities and Exchange Commission on August 15 suspended share trading of three low-profile companies and sent five others to spot market.
Besides, there was a speculation among investors that the market condition might improve ahead of prime minister Sheikh Hasina’s visit to the commission which also instigated a section of investors to invest in the market. Hasina is scheduled to visit BSEC on September on the occasion of 25th anniversary of BSEC.
The financial sectors led the rally over the week with a surge in share prices of non-bank financial institutions and bank by 5.43 per cent and 4.69 per cent respectively with strong trading.
Out of the 30 traded bank scrips, 27 advanced, just two declined and one remained unchanged while out of the 23 NBFIs, all but one advanced over the week.
Besides financial sectors, average share prices of miscellaneous, cement and pharmaceutical sectors also gained on the week.
On the other hand, average share prices of jute, textile and engineering declined by 1.66 per cent, 1.05 per cent and 0.74 per cent respectively.
The daily average turnover on the bourse dropped further to Tk 502.94 crore in the last week from Tk 656.89 crore in the previous week as investors focused on Eid celebration.
Out of the 337 traded issues, 151 declined, 157 advanced and 29 issues remained unchanged.
DS30, the blue-chip index of the DSE, soared by 1.72 per cent, or 32.89 points, to close at 1,948.16 points over the week.
Shariah index DSES added 0.86 per cent, or 10.74 points, to close at 1,257.64 points.
LankaBangla Finance led the turnover chart with its shares worth Tk 39.13 crore changing hands.
BBS Cables, City Bank, Dhaka Bank, BRAC Bank, United Power Generation Company, National Housing Finance, International Leasing and Finance Services, Mercantile Bank and Premier Bank were the other turnover leaders.
MIDAS Financing gained the most in the week with a 20.78 -per cent increase in its share prices, while Aziz Pipes was the worst loser, shedding 17.85 per cent.