Stocks rise for 3rd day on heavy buying of sector-specific scrips

Staff Correspondent | Published: 00:05, Nov 21,2017 | Updated: 22:46, Nov 20,2017


Dhaka stocks on Monday kept gaining for third day, despite fall in prices of most of the scrips, as investors continued with buying shares of sector-specific large capitalised companies, including AB Bank, Shahjalal Islami Bank and Square Pharma.
The key index of Dhaka Stock Exchange, DSEX, increased 0.19 per cent or 12.17 points to close at 6,319.12 points on Monday, stretching the record-breaking run to third day. DSEX gained 83 points in the last three consecutive sessions.
In line with the previous session, the market opened with bullish trend and remained in the positive trajectory for the whole session as heavy buying of sector specific scrips outperformed profit taking sales of some of the scrips.
The share prices of AB Bank, Shahjalal Islami Bank and Dhaka Bank soared by 7.1 per cent, 5.8 per cent and 3.2 per cent respectively on Monday with continued rumours that some groups were buying shares of the banks from the market aiming to take control of the banks.
Earlier, S Alam Group gripped control over Social Islami Bank and Islami Bank Bangladesh by buying shares of the banks from the market.
Before S Alam Group, United Group had attempted to take over SIBL by purchasing 31 per cent shares, but the group backtracked as S Alam Group had expressed its intention to hold the control of the bank.
The huge volume of share purchasing ultimately upped the share prices of the bank.
As a result, a section of investors assumed that if any group attempted to take over any of the banks, the share prices of the bank could shot up amid a huge volume of share buying by the group.
Besides, share prices of Square Pharmaceuticals surged for the six consecutive days after the company declared 42 per cent dividend for the financial year 2017.
Moreover, gains of majority of the non-bank financial intuitions and a marginal rise in average share prices of telecommunication, energy and pharmaceuticals also helped the market to remain positive on the day.
On the other hand, BRAC Bank and IDLC along with some scrips from food, engineering and cement sectors slipped on the day amid a profit taking move by some of the investors.
Turnover on the bourse, an important indicator of the investors’ participation, advanced to Tk 1,158.49 crore compared with that of Tk 970.78 crore in the previous session.
Of the 324 companies and mutual funds traded, 161 declined, 127 advanced, and 36 remained unchanged.
‘Wining session has been observed in the capital bourse of the country amidst optimistic behavior from the investors towards the market,’ said EBL Securities in its daily market commentary.
‘Investors’ buying binge continued on sector sopecific stocks, especially from Pharma & Chemicals, and Financial Institutions,’ it said.
DS30, the blue-chip index, however, declined 0.18 per cent or 4.23 points, to finish at 2,286.11 points.
The Shariah index, DSES, added 0.68 per cent, or 9.45 points, to close at 1,392.73 points.
AB Bank led the turnover chart on the day with its shares worth Tk 85.78 crore changing hands.
LankaBangla Finance, Dhaka Bank, Square Pharmaceuticals, Shahjalal Islami Bank, City Bank, BRAC Bank, FAS Finance, International Leasing and Financial Services and IDLC Finance were other turnover leaders.
Mithun Knitting and Dyeing increased the most with a 9.96 per cent rise in its share prices, while Pacific Denims was the worst sufferer of the day, shedding 12.38 per cent. 

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