FE Report

Dhaka stocks perked up on Sunday as the investors reacted positively to the proposed budget that allows investment of undisclosed money in the stock market.

The DSE General Index (DGEN) -- the benchmark index -- finished at 2774.39 with a gain of 0.98 per cent or 27.12 points, lifted by the rally of Beximco and pharmaceuticals stocks.

The market began in an upbeat mood as the benchmark index jumped 43 points in first 15 minutes, boosted by the combined in all sectors across the board. But the initial gain failed to sustain on profit taking in fuel and power sectors.

"Investment opportunity of undisclosed money in the budget has sent the market into the positive territory," said Moin Al Kashem, managing director of the Prime Finance Asset Management Company Ltd.

Asked if the gain sustainable, he said, "Let's see how things shape up in days to come."

On Thursday, the budget for the 2010 fiscal year proposed to allow disclosure of undisclosed money by paying 10 per cent tax if invested in share market, infrastructure, specific industrial sectors and real state.

A capital market expert, asking not to be named, warned that huge fund flow might make the market overpriced in the shallow market.

"The supply of securities is required right in this moment in the wake of demand created by huge fund flow. Otherwise, the investment might risky," he added.

All Shares Price Index (DSI) gained 29.99 points to close at 2318.23 while DSE-20 Index (DS 20) comprising blue chip rose 50.84 points to end at 2226.08.

Turnover got a big boost on the day as it stood at Tk 6.97 billion, up from previous day's Tk 6.72 billion. Out of 239 issued traded, 136 advanced, 101 declined and two remained unchanged.

The top five most traded issues were Titas Gas (Tk 660.34 million), Beximco Pharma (Tk 541.69 million), Summit Power (Tk 392.32 billion), Beximco Limited (Tk 341.67 billion) and Power Grid ( 262.23 million).

Power sector dominated the trading as Tk 43.0 billion, up by 48 per cent from the previous year, was allocated in power sector development in the proposed budget.

The market reacted to the budget declared quite positively, according to the Equity Partners Limited (EPL), an investment bank. The sectors more likely to be impacted positively by the proposed budget, gained noticeably today.

Banks ended mixed as most of them moved almost marginally. National Bank gained the highest 3.3 per cent.

On the other hand, most of the NBFIs lost on the day. BD Finance was the biggest loser at 3.8 per cent down. Most of the mutual funds and pharmaceuticals gained.

Square Pharma gained 1.3 per cent, Beximco Pharma 7.23 per cent, ACI Limited 4.6 per cent and ACI Formulations 5.2 per cent.

In the Cement sector, Heidelberg Cement gained 1.8 per cent and Lafarge Surma Cement 7.8 per cent.

In the Fuel and Power sector, Titas Gas gained 2.1 per cent. Power Grid lost 1.1 per cent, DESCO 2.4 per cent and Summit Power 1.0 per cent.

Insurance sector ended mostly mixed as most of the general insurance companies lost while most of the life insurance companies gained.

Among others, all stocks in the Beximco group enjoyed large gains. Beximco Limited gained 6.4 per cent.

1st BSRS was the top gainer posting a fall of 12.48 per cent while Rahman Chemical was the top loses with a loss of 11.91 per cent.