Stocks end higher after Eid vacation

Dhaka,  Monday,   2016-09-18
Published : 18 Sep 2016, 21:43:12

Stocks end higher after Eid vacation

Turnover hits 2-month low on premier bourse
FE Report


Stocks finished higher Sunday, the first day of trading after nine-day long Eid vacation, as some enthusiastic investors were active on sector specific stocks.

However, turnover on Dhaka Stock Exchange (DSE) fell to more than two months low as many investors are yet return to the market after Eid holidays.

Stocks end higher after Eid vacationThe trading on bourses remained closed for nine days from September 9 to September 17. However, trading will remain open on September 24 (Saturday) in line with government offices including financial institutions.

Brokers said the market continued to maintain the upward trend for the eight sessions in a row, which started before Eid vacation, as optimistic investors were active on banking stocks, taking the benchmark index to nearly eight months high.

The market started with a positive note and remained flat until the mid-session, which got some momentum on last hour buying spree, ultimately ended 22.89 points higher.

DSEX, the prime index of the DSE, went up by 22.89 points or 0.49 per cent to finish at 4,623.98, which is nearly eight months high level of DSEX since January 24. DSEX added about 100 points or 2.22 per cent in the past eight consecutive sessions.

LankaBangla Securities, a stockbroker, said, "The benchmark index started the morning session optimistic amid positive economic data and moved northward".

The stockbroker noted that sector specific stocks were traded actively whereas overall trading was lackluster as market was yet to become active after long holiday.

The two other in indices also closed higher. The DS30 comprising blue chips advanced 6.08 points or 0.35 per cent to settle at 1,765.74. The DSE Shariah Index (DSES) gained 2.46 points or 0.22 per cent to close at 1,111.12.

Turnover, the crucial indicator of the market, fell and the total turnover amounted to Tk 3.15 billion, which was 34.51 per cent lower than the previous day's Tk 4.81 billion.

Engineering sector emerged as turnover leader, capturing 20 per cent of the day's total turnover value, followed by pharmaceuticals and fuel and power, grabbing 14 per cent and 13 per cent respectively.

IDLC Investments, a merchant bank, said, "The market resumed the pre-Eid gaining trend pulling off a robust start after vacation. Activities were modest as many investors are yet to return to the market".

"The market started the week with positive note and created nearly eight months high since January of this year mainly backed by banks and cement stocks," said Sheltech Brokerage, in an analysis.

Asian Tiger Capital Partners, an asset management company, said, "The week started with positive tone following nine days long Eid vacation, continuing the pattern that it closed before the vacation".

Most of the large-cap sectors closed higher. The heavyweight banking sector was the highest gainer, posting a 1.29 per cent gain, followed by non-bank financial institutions 0.63 per cent.

Food and allied, engineering and telecommunication also advanced 0.29 per cent, 0.26 per cent and 0.08 per cent respectively.

Fuel and power sector posted the highest loss of 0.51 per cent, followed by pharmaceuticals 0.05 per cent.

The gainers took a modest lead over the losers as out of 318 issues traded, 139 closed higher, 130 closed lower and 49 remained unchanged on the DSE trading floor.

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