Dse Weekly Review
Upbeat bank shares keep stocks up for 2nd week
Dhaka stocks advanced last week, the second week in a row, after a four-week bear run as heavyweight bank shares maintained gains. In the week from November 3 to 7, the bank sector gained 9.95 per cent after rising by 6.61 per cent in the previous week.
DSEX, the benchmark index of Dhaka Stock Exchange, increased by 5.87 per cent, or 233.08 points, to close at 4,200.81 points on Thursday, last trading day of the week.
DS30, the blue-chip index of the bourse, finished at 1,453.33 points, advancing by 3.21 per cent or 45.18 points.
The DSEX and the DS30 gained 401.54 points and 92.29 points respectively in the last two weeks. The indices had lost 298.50 points and 151.40 points respectively in the previous four weeks.
Market operators said like the previous week the bank sector played a major role in pushing up the market last week as the sector includes the majority of the large capitalised scrips.
‘Although the week started with uncertainty in the political frontier, the bourse performed well riding on positive news regarding increase in net foreign investment, rather calmness in political arena, and recognition of lucrative price opportunities in bank sector,’ IDLC Investments said in its market commentary.
‘From the second session [of last week], the bank sector started to gain momentum in terms of value and return as high number of undervalued stocks presented lucrative investment opportunities. The following three sessions continued to mark the momentum in the bank sector, as the sector positioned itself as turnover leader and in the league of top gainers,’ it also said.
Market operators said some institutional investors and large-scale investors who were on the sideline for long became active on the trading floor last week.
Increased foreign investment in the capital market was another factor to make investors optimistic, they said.
The daily average turnover of the DSE increased to Tk 396.05 crore from that of Tk 349.25 crore in the pervious week.
Of the traded 294 shares and mutual funds, 220 advanced, 65 declined and nine remained unchanged.
A senior merchant bank official, however, said that the recent bullish trend seemed irrational as they saw no significant improvement on the economic and political fronts.
‘So, investors should invest cautiously,’ he said.
United Commercial Bank led the turnover leaders in last week with its shares worth Tk 73.70 crore changing hands.
Generation Next Fashions, Grameenphone, Envoy Textiles, IFIC Bank, Square Pharma, Padma Oil, Argon Denims, Heidelberg Cement Bd and Meghna Petroleum were other top turnover leaders.
IFIC Bank gained the most with a 36.60-per cent increase in its share price.
First Lease Finance and Investment, Popular Life, Uttara Bank, Samorita Hospital, Mercantile Bank, First Security Islami Bank, Phoenix Finance, City Bank and Aramit were also among the top gainers.
Daffodil Computers lost the most last week with a 20.61-per cent fall in its share price.
-With New Age input
