DSE Weekly Review
Stocks return to positive zone
Dhaka stocks returned to a positive zone last week after declining in the previous one as institutional and large-scale individual investors became active in the market.
DGEN, the benchmark general index of Dhaka Stocks Exchange, gained 2.47 per cent, or 106.75 points, to close the week at 4,431.51 points.
Average daily turnover increased by 36.85 per cent to Tk 813.23 crore last week from the previous week’s Tk 594.22 crore.
Market operators said some large-scale investors and some institutions, buoyant by a month of gains, remained active last week.
They said the investors went for fresh buying last week after booking some profit in the week before.
The market remained volatile last week amid a continued uncertainty about Padma bridge loan and a rumour of resignation of finance minister Abul Maal Abdul Muhith, they said.
But the gradual rise in the turnover helped the investors to keep their nerve, they said.
The DGEN lost 122.11 points in the previous week amid profit taking sell-offs after gaining 352 points in a three-week gaining streak that started from August 4.
‘The small-scale investors are still trading on a short-term profit making motive,’ said a stockbroker.
He said that the large-scale investors would also go for sell-offs casing on the growing confidence of the small investors.
Market insiders said that there might be syndicated trading at the bourse as some newly-listed scrips dominated the turnover of the recent gaining streak.
‘The most traded and gained scrips in the last one month are all newly-listed companies. The investors do not have any track records in their hands of those companies to invest such huge amount of money on those,’ said a DSE director.
He said that the Securities and Exchange Commission needed to find the reason for such unusual rise in the prices of some scrips and take strict action if there are wrongdoings.
Out of the 278 issues traded last week, 188 advanced, 72 declined and 18 remained unchanged.
Banks and telecommunications continued to perform poorly and lost 1.24 per cent and 2.24 per cent respectively last week.
Fuel and power sector gained the most — by 6.37 per cent, non-bank financial institutions gained 7.76 per cent and pharmaceuticals gained 1.89 per cent.
Titas Gas topped the turnover leaders’ chart with its shares worth Tk 341.84 crore changing hands.
The other turnover leaders were Bangladesh Submarine Cable Company, Unique Hotel, United Airways, Jamuna Oil, Meghna Petroleum, RN Spinning, MI Cement, Saiham Cotton Mills and Keya Cosmetics.
Courtesy of New Age
