DSE Weekly review
Stocks gain for the second week
Dhaka stocks gained for the second week as the investors became optimistic after learning that the World Bank will revive the $1.2 billion loan for the Padma Multipurpose Bridge as soon as possible.
DGEN, the benchmark general index of the Dhaka Stock Exchange, gained 5.58 per cent, or 214.90 points, to close the week at 4,678.92 points.
The DGEN gained 14.20 per cent or 550.75 points in the last six weeks when it ended in the negative zone for only one week amidst profitable sell-offs.
The average daily turnover increased by 37.36 per cent to Tk 1,117.04 crore last week from the previous week’s Tk 813.23 crore.
Market operators said that investors remained optimistic, especially the institutional ones, after hearing that the WB will disburse the loan shortly as the government has fulfilled the conditions imposed upon it.
They said the institutional investors, banks and other financial institutions, are expecting the WB’s loan for the Padma Bridge to ease the prolonged liquidity crisis prevailing in the money market.
They also said the retail investors have also seemingly regained some
confidence because of the recent gaining streak in the market with healthy
turnover.
The WB on Friday officially announced that it would revive the Padma Bridge loan after scrapping it on June 29 due to an allegation of corruption in the bidding process.
‘The news will surely boost the market as the DSE index was already upbeat due to the hope of the loan’s revival before the formal announcement was made by the WB,’ said a stockbroker.
He, however, said that some large-scale individual investors, who became active in the last one month, could refrain from trading because the Securities and Exchange last week declared it would take action against some of them for engineering the 2011 stock market scam.
‘As people may have noticed, in the latest uptrend the market was stuck within some few shares which indicated a syndication of large-scale individual investors,’ he said.
Among the five trading sessions last week, the DGEN gained heavily in three sessions and lost marginally in two.
The most weighted sector of the Dhaka bourse, the banks, gained the most, 17.09 per cent, last week, followed by non-bank financial institutions that gained 5.53 per cent.
Telecommunications and pharmaceuticals gained more than 2 per cent each while power lost 3.50 per cent.
Of the 281 issues traded, 203 advanced, 76 declined and two remained unchanged last week.
Titas Gas continued to top the week’s turnover chart for the second time with shares worth Tk 284.15 crore changing hands last week.
The other turnover leaders were United Airways, RN Spinning, Bangladesh Submarine Cable Company, Unique Hotel, MI Cement, Saiham
Cotton Mills, Keya Cosmetics, BSRM Steels and Beximco Ltd.
-With New Age input
