• Thursday, July 10, 2014

Stocks cheerful on political breather

Star Business Report

Dhaka stocks maintained a steady rise for the second consecutive week, as investors injected fresh funds into the market, hoping the ongoing political crisis to come to an end soon.
DSEX, the benchmark general index of the Dhaka Stock Exchange, closed the week at 4,407.83 points, the highest in the last seven weeks, after gaining 93.73 points or 2.27 percent.
The week featured four trading sessions as the market was closed on Sunday on the occasion of the 10th national election. The first session closed low, while the last three were higher.
"Investors seem to be highly optimistic about the market direction ahead. As the new government has taken power, investors are expecting them to take popular decisions that will boost economic activity," LankaBangla Securities said in its weekly market analysis.
The government has reduced source tax from 0.8 percent to 0.3 percent for the readymade garment sector to boost the largest export earning sector which is badly hit by the recent political clashes, the stockbroker said.  
The market has no liquidity crisis, as banks are full with idle money, it said. “Real investment from entrepreneurs is still low due to continuous political clashes.”
“So, this high liquidity in the banking system may find its way to DSEX and keep the market vibrant. But the ultimate market development still depends on long-term business environment.”
The daily turnover averaged Tk 457 crore, registering a 28 percent rise over the previous week's average of Tk 357 crore.
The gainers took a strong lead over the losers as out of the 297 issues traded, 218 advanced, 56 declined and 23 remained unchanged on DSE floor.
All the major sectors ended in the black:  pharma 3.8 percent, power 3.66 percent, non-bank financial institutions 1.73 percent and telecoms 0.88 percent. However, banks lost 0.14 percent.
Golden Son saw the highest liquidity in the last week with 1.20 crore shares worth Tk 81 crore changing hands, followed by LankaBangla Finance, Generation Next Fashions, Summit Purbanchol Power and Appollo Ispat Complex.
National Tubes was the highest gainer of the week, posting a rise of 20.41 percent, while Kohinoor Chemicals was the worst loser, slumping by 9.54 percent.

Published: 12:00 am Sunday, January 12, 2014

Last modified: 9:04 pm Sunday, January 12, 2014

Comment Policy