Listed companies with an eye on the yearend started announcing their third quarter earnings last week. The financial results of the institutions, especially banks and non-bank financial institutions (NBFIs), showed huge profit growth. Much of the growth came from stock investment.
The growth in the earnings added excitement to the investors to rush for the financial sector securities, as speculation over similar growth in other stocks, which are yet to disclose their financial reports, has already gripped the market.
The key index and turnover also hit new highs.
Week-on-week, the benchmark index of the Dhaka Stock Exchange, DSE General Index (DGEN), advanced 321 points, or 4.22 percent, to its highest level at 7,937 points — showing a bull run for the sixth consecutive week.
The single-day turnover also reached a new high of Tk 2,946 crore on Thursday, beating the previous peak of Tk 2,836 crore set on Tuesday last.
Stockbrokers said the rally in the financial sector was backed by the third quarter earnings of the companies that showed a huge profit growth, most of which coming from investment in the stockmarket.
Seeing the third quarter earnings of the companies, investors were taking positions in other companies expecting a good return grounded on third quarter earnings, the stockbrokers said.
The banks saw an average gain of 5.91 percent, while the NBFIs 4.12 percent.
Energy and power sector moved up 4.61 percent, pharmaceuticals 1.21 percent and cement went up 1.75 percent.
On the downside, telecom was the only major sector finishing the week in the red, as Grameenphone, the sole constituent in the sector, declined 2.84 percent.
The total turnover jumped up by 60 percent to Tk 13,101 crore, while the daily average turnover went up 28 percent to Tk 2,620 crore. Market capitalisation stood at Tk 3,37,784 crore, up by 2.73 percent.
