Investors take heart from year-end results

Dhaka,  Fri,  28 July 2017
Published : 13 Jul 2017, 22:25:13
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Investors take heart from year-end results

Analysis
FE Report


Stocks were back in the green Thursday, snapping the last session's profit booking amid increased participation of investors.

Market insiders said declining interest rate on bank deposits, possible interest rate cut on savings instruments, revision of budget, optimism generated by year-end earnings and dividend declarations have prompted investors to take fresh position.

The market witnessed a mild swing at the onset of the market and it lasted until the mid-session.

Since then, the key index of the premier bourse skyrocketed until  the end of the session, paring last session's heavy sell-off with the broad index reaching a new high.

During the first half of the session, the index remained below 5,800-level, commented LankaBangla Securities, a stockbroker, in its regular market analysis.

However, during the final half, the index continuously rose and closed green at 5,835.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 44 points or 0.76 per cent to settle at 5,835, which was the highest level of DSEX since its inception on January 27, 2013.

The two other indices also closed higher. The DS30 index, comprising blue chips advanced nearly 15 points or 0.70 per cent to finish at 2,131. The DSE Shariah Index (DSES) rose 10 points or 0.78 per cent to close at 1,327.

International Leasing Securities, said: "Following the previous day's major correction, the market started the session with downward trend as the investors liquidated their holdings. However, active presence of the bargain hunters helped revise the morning trend."

The stockbroker noted that the optimistic investors continued their buying spree mostly in telecom, food, textile and financial institution sectors.

Robust earning declaration in the second quarter of GP attracted the investors most, it added.

Trading activities has increased by 10 per cent over last session while top ten traded companies captured around 35 per cent of the day's total turnover.

"Top gainers' and losers' list comprised mostly small-cap stocks whereas the turnover list was dominated by the large-cap stocks," the stockbroker added.

A total of 0.141 million trades were executed in the day's trading session, generating a turnover of Tk 10.10 billion. Block trade contributed Tk 90 million to the total turnover.

Of the 330 issues traded on the DSE trading floor, 210 closed higher, 70 closed lower while 50 remained unchanged.

All large-cap sectors showed positive performance except pharmaceutical which faced 0.10 per cent correction.

Telecommunication sector posted the highest gain of 4.80 per cent riding on GP, followed by food & allied with 1.6 per cent, non-bank financial institutions 0.80 per cent, fuel & power 0.71 per cent, engineering 0.62 per cent and bank 0.54 per cent.

GrameenPhone topped the turnover chart with about 1.82 million shares worth Tk 656 million changing hands, followed by Keya Cosmetics, IFAD Autos, United Power and Generation Next Fashions.

Fu-Wang Food was the day's top gainer, posting a 9.73 per cent rise, while Agrani Insurance was the worst loser, plunging 4.24 per cent.

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