Stocks gain for 3rd week on large caps

Staff Correspondent | Published: 23:52, Nov 18,2017 | Updated: 00:01, Nov 19,2017


Dhaka stocks rallied last week, the third week in a row, with the key index hitting a fresh all-time high as investors increased their investments, especially in the large capitalised scrips including banks, Grameenphone and Square Pharmaceuticals ahead of their year closing.
DSEX, the key index of Dhaka Stock Exchange, advanced by 1.43 per cent, or 89.09 points, over the week to close at 6,282.09 points on Thursday.
The core index gained 263 points in the last three weeks.
The DSEX witnessed fresh records in the week after its launch with 4,055 points on January 28, 2013.
The equity market began the week with a bullish vibe that sustained until the end of the week with a two-day marginal loss as investors headed for investment, especially in large capitalised scrips.
With an expectation of strong earnings and dividends for the year ending in December, investors raised their stakes in the large capitalised stocks.
Market operators said that the market reached to a new high in the week as investors turned their focus on the large capitalised scrips, especially those of banks and Grameenphone.
Banks and Grameenphone remained in the centre of the investors’ attention for the second successive week amid their better third-quarter earnings results, they said.
The average share prices of banks increased by 0.9 per cent and GP shot up by 6.4 per cent that contributed most to the key index hitting a fresh all-time high in the week.
Besides, the share prices of Renata, Square Pharmaceuticals and British American Tobacco also surged by 6.7 per cent, 6.6 per cent and 6.3 per cent respectively.
Moreover, the share prices of AB Bank and Shahjalal Islami Bank shot up by 15 per cent and 6.4 per cent respectively in the week amid rumours that Chittagong-based S Alam Group would take control of the banks after the Group has taken control of a number of other listed banks through hostile takeovers.
Market operators said investors were buying shares of the banks based on the rumours hoping that if S Alam Group goes for the banks, the Group’s buying pressure would lead to the rise in the share prices of the banks.
On the other hand, the average share prices of textiles and cement dropped by 0.32 per cent and 0.3 per cent respectively.
The daily average turnover on the bourse advanced by 30.46 per cent to Tk 936.99 crore last week compared with that of Tk 718.22 crore in the previous week.
‘Investors’ sentiment regarding the market remained positive and buoyancy prevailed throughout the week,’ said EBL Securities in a weekly market commentary.
‘Meanwhile, earnings and corporate declarations from several companies satisfied investors’ expectations and hence investors kept buying fresh stocks to rebalance their portfolios,’ it said.
Of the 337 companies and mutual funds traded, 185 declined, 135 advanced and 17 remained unchanged.
DS30, the blue chip index of the DSE, however, soared by 1.58 per cent, or 35.54 points, to close at 2,279.65 points over the week.
The Shariah index of the bourse, DSES, gained 2.55 per cent, or 34.16 points, to close at 1,375.45 points.
BRAC Bank led the turnover chart in the week with its shares worth Tk 176.17 crore changing hands.
City Bank, Dhaka Bank, Grameenphone, AB Bank, Square Pharmaceuticals, Shahjalal islami Bank, LankaBangla Finance, IFAD Autos and IDLC Finance were the others turnover leaders.
Eastern Cables gained the most in the week with 19.28 per cent increase in its share price, while Eastern Lubricants was the worst loser, shedding 16.86 per cent.

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