Dhaka, Bangladesh (BBN)- Dhaka stocks closed higher with turnover improving significantly as new indices and monetary policy statements (MPS) made investors optimistic during the last week, market operators said.
The market witnessed five trading sessions as usual. Among those, four sessions gained 85.76 points, while one session lost marginally by 22.76 points.
Week-on-week, the benchmark general index of the DSE went up by 63.0 points or 1.51 per cent to close at 4,230.69 points.
The two new indices which have been launched on Monday last also posted gains. The DSE Broad Index (DSEX) rose 80.40 points or 1.98 per cent to close at 4,136.3, while DS30 advanced 28.26 points or 1.94 per cent to close at 1,488.56 points.
The total turnover at the DSE posted a significant rise following the launch of the new indices. The total turnover value for the week stood at BDT 13.7 billion, going up sharply by 86.6 percent from the previous week’s value of 7.3 billion.
Hence, this week had five trading sessions, the daily average turnover value also rose 86.6 percent to BDT 2.74 billion from previous week’s average BDT 1.46 billion.
All the major sectors posted gains in the week. NBFI gained 2.92 percent and it was the biggest mover of the week. It was followed by pharmaceuticals 1.88 percent and fuel and power 1.87 percent.
Meanwhile, banks also gained 1.85 percent, whereas telecommunications ended flat by gaining 0.02 percent.
The last week of the month started with a flat session as investors were waiting for the new indices namely, DSEX and DSE30, to be rolled out Monday last, stated IDLC Investments in its weekly market analysis.
On Monday DSE launched two new price indices— DSE Broad Index (DSEX) and DSE-30 Index (DS30)– based on free float and Standard and Poor’s (S&P) methodology, one of the world’s prominent credit-rating agencies, to replace the existing ones.
The new indices— DSEX and DS30– have been developed and designed by S&P.
Besides, Monetary Policy Statement (MPS) was announced on Thursday. These two events dominated investors’ psychology hitting the turnover to the highest level in the current year during the week, it said.
Sectorwise movements were more evident last week, as quarterly declarations started to hit the bourse, while the turnover level stayed over the BDT 2.0 billion mark throughout the week crossing the boundary of BDT 3.0 billion once.
“With improving turnover and lots of movements, market is now acting strong. More support zones are being identified. Besides, even after a correction phase and hartal market didn’t lose that much capitalisation or turnover. It can be regarded as a good sign,” commented Zenith Investments.
The market ended the week in positive territory as investors were slightly upbeat towards the monetary policy for the second half of the current fiscal year, commented LankaBangla Securities in its weekly market analysis.
During the week, a total of 283 companies and mutual fund units were traded. Among them, 200 issues advanced, 76 declined and seven remained unchanged.
The market capitalization of the DSE, increased slightly by 1.13 percent, as it was BDT 2,376.66 billion on the opening day of the week and at the end of the week it stood at BDT 2,403.67 billion.
United Airways dominated the week’s top turnover chart with shares worth BDT 1.01 billion changing hands.
The other turnovers leaders were Unique Hotel and Resorts, Generation Next Fashions, RN Spinning, Delta Spinners, BSCCL, Saiham Cotton Mills, Sunlife Insurance and National Bank.
Newly listed Sunlife Insurance was the week’s highest gainer posting a rise of 721 per cent followed by FAS Finance, Intech Online, Daffodil Computers, Dacca Dyeing, Al-Haj Textile, National Housing Limited, BDCOM Online, SinoBangla Industries, and Phoenix Insurance.
The week’s worst losers included Malek Spinning, Prime Finance, NCC Bank Mutual Fund One, Reliance Insurance, ACI Formulations, Samorita Hospital, Chittagong Vegetables, LR Global Mutual Fund One and Second ICB Mutual Fund.
BBN/SSR/AD-02Feb13-12:15 pm (BST)
