Banks propel Dhaka stocks as turnover crosses Tk 15b

FE Report

Dhaka stocks edged slightly higher Sunday on major gains by the banking sector as turnover crossed Tk 15.0 billion-mark after more than two months, boosted by large pickings by institutional and retail investors.

The benchmark DSE General Index (DGEN) closed at 5626.15 with a gain of 10.86 points or 0.19 per cent, after closing slightly higher in the previous session.

The broader All Shares Price Index (DSI) gained 13.44 points or 0.29 per cent to 4629.99 while DSE-20 Index comprising blue chips was up by 36.56 points or 1.22 per cent to 3015.28.

Banking issues, which make up one-fourth of Dhaka stocks' market capitalisation, propelled the DSE with a four per cent increase despite declines in telecommunications, pharmaceuticals and energy, dealers said.

Investors pumped in new fund to take turnover past Tk15 billion for the first time since February 18. The amount was up 21.24 per cent over the last session.

Out of 250 issues traded, 133 closed positive, 112 negative and five remained unchanged.

"The market was up as the banking sector saw buying binge and strong growth," said Ahmad Rashid, managing director of Rashid Investment Services Limited.

Investors -- institutional and retail -- returned to the market en masse, buoyed by bullish trend in the previous week when banks rose six per cent, he said.

Ten banks gained more than five per cent with Prime Bank climbing highest 9.24 per cent, followed by Standard Bank 7.55 per cent, Southeast Bank 7.32 per cent and Bank Asia 6.0 per cent.

Telecommunications - which accounts for one-fifth of the total market -- lost 2.53 per cent as Grameenphone, lone listed company in this sector, closed at Tk 328.00 from Tk 335.00.

Fuel and power sector gained 1.15 per cent as the big players advanced. DESCO rose 1.81 per cent, Titas 1.74 per cent, Summit Power 2.84 per cent and Power Grid 1.88 per cent.

General insurers finished flat, up by only 0.10 per cent. Life insurers posted a 4.51 per cent rise following 3.54 per cent increase in the last two weeks.

Cement sector advanced 1.34 per cent as multinationals, Lafarge Surma Cement and Heidelberg cement, rose 1.22 per cent and 0.67 per cent respectively.

Leasing sector, known as non-banking financial institutions (NBFIs), declined 1.03 per cent on price correction, snapping a three-day rally. Mutual funds fell 0.37 per cent and pharmaceuticals 0.47 per cent.

Beximco Ltd continued to top the turnover list for sixth straight session with shares worth Tk 1.02 billion changing hands.

It was followed by Summit Power, EXIM Bank, DESCO, Social Islami Bank, Beximco Pharma, GP, Premier Bank, Bextex and Southeast Bank.

The day's other top gainers were Rahima Food, Popular Life Insurance, Standard Bank, Southeast Bank, Mercantile Bank, Summit Alliance Port, National Life Insurance, Shahjalal Bank and Bank Asia.

First Lease International was the biggest loser plunging 6.52 per cent on price correction despite the company declared 75 per cent stock dividend on the day.

Other prominent losers included Alpha Tobacco, Fidelity Asset, Modern Dyeing, Kay and Que, Legacy Foot Wear, Meghna Condensed Milk and Monno Fabrics.