Dhaka stocks returned to positive zone last week after declining for the last five weeks with significant rising turnover riding on better quarterly earning expectations of large capitalised company shares and bargain hunting. The key index of Dhaka Stock Exchange, DSEX, increased to 4,621.23 points over the week, adding 2.51 per cent or 113.17 points.DS30, the blue-chip index of the bourse, closed at 1,670.15 points, rising 3.84 per cent or 61.80 points.
Investors are expecting earning discloser, mostly from large capitalised company shares, of the listed companies ahead of the January-March quarter report discloser, market operators said.
They said bargain hunting by some investors following recent five-week fall was also another reason behind the upbeat vibe in the bourse.
The operators said that investors, who were shaky for the last five weeks due to institutional investors’ less participation on the trading floor following recent Bangladesh Bank directives, were expecting that the government might relax a condition of the refinance loans, which was hindering the refinance scheme implementation process, made the investors optimistic.
The investors are expecting that after the waiver of the condition, Investment Corporation of Bangladesh will start releasing refinance loans, said the operators.
Relaxation of a section of the margin rules which barred portfolios with 150 per cent price fall from share trading was another reason behind investors being optimistic, they said.
The shariah index of DSE, DSES, advanced by 2.73 per cent, or 26.84 points, to stand at 1,008.47 points.
Daily average turnover of the bourse increased to Tk 379.75 crore last week compared with Tk 285.74 crore in the previous trading session.
Of the 301 traded shares, 152 advanced, 133 declined and 16 remained unchanged.
The DSEX had declined by 216.88 points in the previous five weeks, while it had lost 326 points since February 6 when the index reached at its all-time high of 4,845.08 points.
‘With the support of “bargain hunters” and their preferable positioning in large capitals assisted the market to rebound,’ IDLC Investments said in its weekly market commentary.
‘Sequential price drop until the last week amid the lacklustre trading offered investors some space of reassessment.
‘The resultant impact was upbeat reversal of market sentiment.
‘Amid the major sectors, significant price increase of BATBC assisted food and allied sector to have major portion of return. Besides, Cement and Telecommunication sector gained 6.81 and 5.31 per cent respectively,’ IDLC said.
Lafarge Surma Cement led the turnover chart as its shares worth Tk 127.84 crore changed hands over the week.
Padma Oil, Grameenphone, Square Pharma, BSC, Familytex (BD), Heidelberg Cement BD, Eastern Housing, Meghna Petroleum and Bangladesh Submarine Cable Company were among other turnover leaders.
BATBC gained the most over the week by 19.71 per cent following its corporate declaration, while Pioneer Insurance lost the most shedding 17.94 per cent.
-With New Age input
