Stocks stage strong rebound riding on large-caps

Dhaka,  Wed,  23 August 2017
Published : 13 Jul 2017, 22:26:46
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Stocks stage strong rebound riding on large-caps

DSEX hits record high, turnover jumps 10pc
FE Report


Stocks on Thursday rebounded strongly after a single-session break as investors showed their buying appetite on large-cap stocks like GrameenPhone (GP).

As the lone listed mobile phone company in the country's capital market, stocks of GP soared nearly 5.0 per cent to close at Tk 365.10 each following the news of its robust earnings growth and interim dividend declaration on the day.

The board of directors of the company, having the largest market-cap as a listed firm, recommended 105 per cent interim cash dividend for the year that will conclude on December 31, 2017.

After witnessing volatility in the first half of the trading session, the last half went up sharply - finally gaining more than 44 points.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), which replaced the DGEN nearly four and a half years back, 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 country's prime bourse launched the DSE Broad Index (DSEX) on January 27, 2013 with a base point of 4,055.90, replacing the DSE General Index (DGEN).

However, DGEN, the then key index of the DSE, rose to an all-time high at 8918.51 points on December 5, 2010, when the market had become bullish before the much-talked-about crash.

IDLC Investment, a merchant bank, said, "Remaining a bit slow in the first half of trading, the bourse gained momentum in the second half - accumulating a total of 44 points by the day-end".

It noted that the largest market-cap stock GP declared interim cash dividend of 105 per cent and its Q2 earnings, demonstrating a robust growth of 55.70 per cent year-on-year in Q2 earnings that resulted the script in gaining its market cap by 4.94 per cent and contributing to the overall positive mood of the market.

"The market rebounded strongly, led by the large-cap stocks, particularly GrameenPhone," commented AT Capital Partners, an asset management company, in an analysis.

The AT Capital noted that GP led the day's bull-run on the back of robust growth of 55.70 per cent year-on-year (YoY) in second quarter (Q2) earnings.

Along with core index, the total market capitalisation of the DSE also rose to an all-time high of over Tk 3,918 billion on the day - surpassing the previous high of Tk 3,893 billion recorded on Tuesday.

The two other indices -- DS30 index and DSE Shariah Index (DSES) -- followed the suit to close at 2,131 and 1,327 points, after advancing 15 points and 10 points respectively.

The DSE Shariah Index also reached its highest level since introduction on January 20, 2014.

Turnover, an important indicator of the market, also rose to Tk 10.10 billion, which was 10 per cent higher than the previous day's Tk 9.14 billion.

The port city bourse, the Chittagong Stock Exchange (CSE), also rebounded strongly with its Selective Categories Index - CSCX - gaining 88 points to settle at 10,939 points.

Gainers beat losers as 166 issues closed higher, 58 lower and 25 stayed unchanged on the CSE.

The port city bourse traded 22.80 million shares and mutual fund units worth Tk 543 million in turnover total.

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