Weekly Review: Bangladesh’s stocks keep rising on budget hype

Last updated: June 3, 2017

Retailers trade at Dhaka Stock Exchange office. BBN file photo

Dhaka, Bangladesh (BBN) - Bangladesh’s stocks extended the winning spell for the two consecutive weeks that ended on Thursday as some investors showed their buying appetite on bank issues amid optimism.
Analysts said the market maintained the upward trend for the second week in a row amid budget hype despite no incentives for stock investors in the new budget for the fiscal year 2017-18.
Finance Minister AMA Muhith proposed to keep unchanged the existing tax rate for publicly traded companies at 25 percent and for non-publicly traded companies at 35 percent.
“The government recent decision to cut yield rates of savings instruments also prompted investors to take fresh position anticipating short-term rally,” said a stockbroker.
The week witnessed five trading sessions as usual. Of them, first two sessions faced correction while last four closed higher.
The prime index of the Dhaka Stock Exchange (DSE) went up by 24.89 points or 0.46 percent to settle at 5,439 points over the previous week.
The DS30 index, comprising blue chips, also advanced 11.37 points or 0.57 percent to close at 2023 points.
However, the DSE Shariah Index fell 1.63 points or 0.13 per cent to close at 1,259 points.

The port city bourse, Chittagong Stock Exchange (CSE), also edged higher with its Selective Categories Index, CSCX, advancing 49 points or 0.48 per cent to settle at 10,208 points.
“The stock market maintained its positive vibe amid rising confidence from the investors,” commented said International Leasing Securities.
The stockbroker noted that the optimistic investors showed their buying interest on large-cap stocks, especially from bank, fuel & power and telecom sectors that helped the indices to end the week in green.
The total turnover for the week came down to BDT 20.56 billion, registering a decline of 24 percent over the previous week’s BDT 26.99 billion.
The daily turnover averaged at BDT 4.11 billion, which was 24 percent lower than the previous week’s average of BDT 5.40 billion.
Large-cap sectors showed mixed performance. Bank posted the highest gain of 1.83 percent, followed by fuel and power 0.84 percent, telecommunication 0.20 percent, pharmaceuticals 0.06 percent and food and allied 0.05 percent.
Engineering and financial institutions sectors faced correction of 0.82 percent and 0.17 percent respectively.
However, the losers took a modest lead over the gainers as out of 332 issues traded, 173 closed lower, 128 closed higher and 31 remained unchanged on the DSE trading floor.
IFAD Autos topped the week’s turnover chart for the third straight week with about 5.58 million shares of BDT 747 million changing hands, closely followed by United Power, LankaBangla Finance, Brac Bank and Evince Textile.
Tosrifa Industries was the week’s highest gainer, posting a 12.11 percent rise, while Mutual Trust Bank was the worst loser, shedding by 11.85 percent.
One new issue- Nurani Dyeing & Sweater – made trading debut last week. The new comer’s share price jumped 108 percent to close at BDT 20.80 each on DSE from its issue price of BDT 10.

BBN/SSR/SR

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