Dhaka stocks break losing streak | The Daily Star
12:00 AM, October 26, 2017 / LAST MODIFIED: 12:00 AM, October 26, 2017

Dhaka stocks break losing streak

Dhaka stocks gained 0.6 percent to close at 6,001 yesterday, breaking a two-day losing streak thanks to the earnings declaration by banks and non-bank financial institutions.

The benchmark index—DSEX—gained 33.5 points yesterday from the previous day while the daily turnover surged by 8.7 percent to Tk 582.83 crore from the previous session.

First Security Islami Bank (FSIBL), Dhaka Bank and Uttara Bank declared earnings per share for the third quarter yesterday.

The price indices rose as retail investors started buying shares after the earnings declaration by banks and non-banks, said Mohammed Rahmat Pasha, managing director of UCB Capital Management.

Banking shares, which have 23 percent contribution in market capitalisation, lost around 20 percent price on an average since last week, he said. As a result, investors are now taking position to buy shares at low prices, Pasha said.

Moreover, the earnings declaration helped investors to make an assessment about their future investment, which created a buying pressure in the market, he said.

The banks which declared poor earnings may see further fall in share prices, he predicted.

Of the banks, earnings of FSIBL fell while Dhaka Bank and Uttara Bank saw marginal profit.

The earnings per share of FSIBL fell to Tk 0.28 in the July-September quarter from Tk 0.50 in the same period last year.

The bank earned Tk 1.11 against each share in the nine months to September, down from Tk 1.49 in the same period last year, according to Dhaka Stock Exchange.

Despite a fall in earnings, the bank's share price increased yesterday as its Chairman Mohammed Saiful Alam announced to buy 14,256,350 shares of FSIBL at the current market price, which stands at Tk 22 crore.

Price of each FSIBL share rose Tk 0.3 or 1.99 percent yesterday to close at Tk 15.40 compared to the previous day.

Among the major large cap sectors, food and allied, telecom and bank registered positive movement of 2.45 percent, 1.37 percent and 1.11 percent respectively.

Of the traded issues, 173 securities gained, 110 declined and 48 remained unchanged.

DS30 and DSES were 8.68 and 2.30 points in the green respectively.

BBS Cables topped the turnover list followed by Ifad Autos, LankaBangla Finance, Brac Bank, Aamra Networks and National Bank.

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