Banking stocks rebound

Shares of banks on the Dhaka Stock Exchange rose strongly yesterday, putting a halt to their frequent fall this year.

Banking stocks declined 28.5 percent this year, according to IDLC Securities. 

But yesterday, the shares of the heavyweight sector advanced 2.05 percent. Of the listed 30 banks, 26 gained, one declined and three remained unchanged.

"The shares of the banks have become lucrative following their huge falls in recent months," said Mohammed Rahmat Pasha, managing director of UCB Capital Management. He said some of the banks posted good profit in the second quarter, leading investors to channel some of their money into the banking stocks.

Subsequently, the DSEX, the benchmark index of the premier bourse, rose 45.56 points, or 0.85 percent, finishing the day at 5,348.20.

Turnover, another important indicator of the market, jumped up 1.1 percent to Tk 740.62 crore, with 21.08 crore shares and mutual fund units changing hands.

Of the traded issues, 169 advanced and 124 declined with 43 securities closing unchanged.

BBS Cables dominated the turnover chart with 29.75 lakh shares worth Tk 31.79 crore traded, followed by Fortune Shoes, United Power Generation, BD Thai Aluminium and Ifad Autos.

Among the major sectors, non-bank financial institutions advanced 2.14 percent, general insurance 1.86 percent, mutual funds 0.55 percent and pharmaceuticals 0.36 percent. Conversely, paper & printing and fuel & power declined 1.14 percent and 0.27 percent respectively. IPDC was the day's best performer with 9.89 percent gains, while Meghna Pet was the worst loser, giving up 10 percent. Chittagong stocks also soared with the bourse's key index, CSCX, increasing 88.63 points to finish at 9,950.35.

Gainers beat losers as 129 issues advanced and 94 declined, while 23 finished unchanged on the Chittagong Stock Exchange.

The port city bourse traded 1.05 crore shares and mutual fund units worth Tk 30.70 crore.