Dhaka stocks gain for 6th week as banks, NBFIs surge

Staff Correspondent | Published at 10:27pm on May 22, 2021

Dhaka stocks advanced in the past week, stretching the gaining streak to the sixth week, as investors kept buying shares, especially those of financial companies.

DSEX, the key index of the Dhaka Stock Exchange, gained 1.09 per cent, or 62.57 points, over the past week to close at 5,813.07 points on May 20, the last trading session of the week.

The DSEX gained 558 points in the last six weeks.

The key index advanced in three out of five trading days in the past week as investors increased buying shares, especially those of financial companies, market operators said.

Insurance companies also got the investors’ attention over the week as the media reported in the past week that the Bangladesh Securities and Exchange Commission had asked all market intermediaries, bourses and listed companies to provide health and life insurance to their employees.

Average share prices of bank, general insurance, mutual fund and non-bank financial institution sectors soared by 4.8 per cent, 2.2 per cent, 0.7 per cent and 0.6 per cent respectively.

Bank and general insurance together logged 35 per cent of the week’s total turnover.EBL Securities in its weekly market commentary said, ‘A gain in bank and NBFI sectors as a result of higher than expected earnings and in insurance sector as a result of regulatory mandate to bring capital market employees under health insurance has mainly contributed to the bullish trend on the market.’

The proposal to reduce corporate tax rates for both listed and non-listed companies also strengthened the investors’ confidence in the market, it said.

Besides, the investors’ worries over the Covid outbreak have waned in recent days amid a decline in infection and death rates.

The government has extended the ongoing restrictions on public movement and overall activities from May 16 to May 23 to contain the spread of Covid-19.

Share prices of many companies declined over the week as a section of investors went for profit booking after recent gains.

Average share prices of telecommunication, textile, energy and pharmaceutical dropped by 1.6 per cent, 1.1 per cent, 0.7 per cent, and 0.5 per cent respectively.

Share prices of all the multinational companies except British American Tobacco Company declined over the week.

The average turnover on the DSE also advanced to Tk 1,684.9 crore in the past week compared with that of Tk 1,402.98 crore in the previous week.

Out of the 371 issues traded in the past week, 169 advanced, 149 declined and 53 remained unchanged.

DSE’s blue-chip index DS30, however, shed 0.38 per cent, or 8.4 points, to finish at 2,178.47 points.

Shariah index DSES also lost 0.18 per cent, or 2.33 points, over the past week to close at 1,272.81 points.

BEXIMCO led the turnover chart in the past week with its shares worth Tk 700 crore changing hands.

Prime Bank, Saif Powertec, British American Tobacco, LankaBangla Finance, Robi, National Feed Mills, IFIC Bank, Genex Infosys, and Maksons Spinning Mills were the other turnover leaders.