Stock rally continues

DGEN hits new high
Stocks jumped more than 2 percent yesterday, as enthusiasm created by banks’ robust half-yearly operating profit rippled other sectors.
The banking stocks apart, other sectors, especially the non-bank financial institutions, also marked a rise as the investors speculate that good half-yearly financial disclosures will come from them.
The banks, especially those with capital market wings, made robust operating profit in the six-month period to this June.
Market insiders said the investors who stayed on the sidelines before the budget also became active after the budget got through.
They also said the institutional investors who realised capital gains ahead of the half-yearly disclosures of the banks have started taking positions on securities.
“Many investors took cautious approach before the budget, which slowed the market at that time. Now they are coming back to the market,” said an insider.
Some others, however, are worried about the current bullish trend in the market. “If the supply side is not properly addressed or increased, the market may heat up,” said Saiful Islam, senior vice-president of BRAC-EPL Investments Ltd.
Yesterday, the benchmark index of the Dhaka Stock Exchange — DSE General Index (DGEN) — went up by 137.6 points, or 2.21 percent, to 6,354.68. With the gain, the DGEN also hit an all-time high.
All the sectors advanced on the premier bourse with the telecom sector leading the gaining streak.
The telecom sector, comprised of lone Grameenphone, alone contributed more than 50 points to the DGEN, as its prices advanced around 6.5 percent on the floor.
The banks, energy and power companies, financial institutions and insurance companies also fuelled the gain in the key index.
Advancers outnumbered losers 204 to 40. However four securities remained unchanged on the DSE, which traded more than 6.7 crore shares and mutual fund units on a turnover of Tk 2,108.21 crore.
Titas Gas, the state-run energy company, topped the turnover leaders with more than 15.23 lakh shares worth Tk 164.59 crore being traded.
Chittagong stocks also posted a sharp rise yesterday. The benchmark CSE Selective Categories Index jumped by 281.3 points, or 2.4 percent, to 12,001.95.
More than 71.66 lakh shares and mutual fund units changed hands on the Chittagong Stock Exchange on a value of Tk 149.26 crore.
Of the traded issues, 141 advanced and 34 declined on the port city bourse.
Beximco Limited topped the turnover leaders with more than 6.61 lakh shares worth Tk 20.32 crore being traded.

Courtesy of The Daily Star