Dhaka stocks advance for 5th day
Dhaka stocks advanced for the fifth trading session on Monday with the key index of the bourse hitting the highest value since its launch a year ago as investors are anticipating further rise in share prices as the Awami League-led alliance formed government for third time.
The benchmark general index of Dhaka Stock Exchange, DSEX, increased by 0.38 per cent, or 17.01 points, to finish at 4,454.83 points, the highest after its launch with 4,090.47 points on January 28, 2013.
DS30, the blue-chip index of the bourse, declined by 0.36 per cent, or 5.67 points, to close at 1,571.09 points.
The turnover of the bourse increased to Tk 650.68 crore from Tk 619.54 crore in the previous trading session.
The DSEX and DS30 have now advanced by 158.49 points and 65.06 points in last five trading sessions’ rise.
Of the 291 shares and mutual funds changing hands, 159 advanced, 103 declined and 29 remained unchanged.
According to market operators, investors are anticipating another bubble in the market after formation of the new Awami League-led government.
In 2009-2010, DGEN, the old benchmark general index of the DSE, increased abnormally after the formation of AL-led government. The same thing happened in 1996. On both the occasions, the bubble burst.
Declaration of corporate status of the listed companies by January-February was another reason behind investors’ optimism, they said.
Bangladesh Bank might declare relaxed monetary policy for January-June period which was another reason behind investors’ buoyancy, they said.
Market experts, however, suggested that investors should invest more prudently to save their capital from losses on the basis of companies’ fundamental strength.
‘Market took a pause today, passing a flat session, as investors stood wondering at the historical high level of DSEX, about the strength of the current rally,’ IDLC Investments said in its daily market commentary.
However, participation did not retract at all, it said.
‘Engineering captured 24 per cent of today’s [Monday] turnover, while fuel and power, textile and pharmaceuticals remained vibrant, too, reflecting diverse interest from the investors,’ said the IDLC.
Bengal Windsor Thermoplastics led the turnover chart as its shares worth Tk 28.37 crore changed hands on Monday.
Appollo Ispat, Golden Son, Orion Pharma, Olympic Industries, Bangladesh Building Systems, LankaBangla Finance, Summit Purbanchol Power Company, UCBL and Square Pharma were among other turnover leaders.
Renwick Jajneswar gained the most as its share prices increased by 9.94 per cent, while Samata Leather Complex lost the most shedding 7.69 per cent.
-With New Age input
