Monday, July 22

Corporate disclosure, regulatory steps drive stocks upward

Key share price index in the country’s twin bourses—Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) – returned  to black yesterday, the last trading day of the week, report agencies.

Dhaka Stock Exchange (DSE) saw a sharp rebound yesterday upward with all market indicators substantially recovering the past two sessions’ losses. DSEX, the broader price index, regained 63.80 points to finish the week at 5173.2.

The two selective indices – the blue-chip DS30 and the Shariah DSES – returned to the positive zone with 30.15 points and 17.20 points gain respectively. The DS30 ended the week at 1949.47 when the DSES closed at 1220.04.

The market activities shoot up with nearly 33 per cent rise in the trade value and over 44 per cent in volume when 17.92 crore shares worth Taka 724.84 crore changed hands.

The higher activities pushed share prices up across the board with 213 securities gaining against 77 losing and 21 static issues.

“A number of quarterly declarations hit the market during the session and consequently the bourse reacted positively,” said IDLC Investment Limited.

Lanka Bangla Securities (LBS) also commented that the market ended the day with smart gain on the closing day of this week when investors watched streams of corporate declarations to grip the movement in index.

Quarterly earnings on financial sector kept the banking stocks in focus, while fuel and power, pharmaceuticals and other manufacturing stocks were also in buying radar, the LBS market update said. Some market analysts attributed the last session’s positive return to the recent regulatory action against share price manipulation.

On the closing day of the week banking sector gave 0.9 per cent return in market capitalisation following the significant growth of the banking stocks in the third quarter (Q3). However, in the sectoral front, cement gave the highest 3.9 per cent return in market capitalisation followed by fuel and power 2.4 per cent and textile 1.23 per cent.

On the other hand, NBFI lost 1.5 per cent when the life insurance by 1.8 per cent in market capitalisation.

Titas Gas was the most liquid scrip of the last trading session of the week with sharing 3.7 per cent of the day’s total return followed by SPPCL, KPCL, AB BANK and KPPL.

During the week ended yesterday, DSE experienced some volatility amid Q3 earning reports of a large number of companies. The benchmark index had hit 5111 level losing 42 points in first trading session and closed at 5173 at the end of the week registering 19 points of weekly gain.

The LBS analysis showed fuel and power stocks dominated the week registering 3.15 per cent gain in market capitalisation.

Average daily turnover during the week was Tk 553.50 crore, down by 15.45 per cent showing investors cautiousness about new investment.  The top gaining sectors of the week included paper printing, IT, miscellaneous and fuel and power when the top losing sectors were ceramic, travel and leisure, tannery and service and real estate.

Top gaining companies of the week were All Tex by 145 per cent, SPCL by 59.7 per cent and Modern Dye by 26.1 per cent gains. On the other hand, the top losing companies included First Lease Finance by 11.4 per cent, Lanka Bangla by 8.1 per cent and Zahin Tex -8.1 per cent loss.

The day’s top 10 gainers at the DSE were- Saif Power, Power Grid, AB Bank, Shurwid, Nitol Insurance, Mithun Knitting, Sino Bangla, SPCL, Navana CNG, and Keya Cosmetics.

The CSE key index, CSCX gained 105.10 points to reach 9700.13 at the close yesterday. Of the 234 issues traded, 146 advanced, 66 suffered loss and 22 remained unchanged.

The value of the traded issues was Tk 54.14 crore at the CSE yesterday.