Dhaka stocks hit 11-month high

The Dhaka bourse's index raced past the 5,900 mark and hit an 11-month high yesterday thanks mostly to gains in bank and non-bank financial institution stocks.

The benchmark index of Dhaka Stock Exchange rose 59.77 points or 1.01 percent before closing at 5,925.24, led by over a 3 percent surge in banking stocks.

Investors regained confidence after the election and started pouring money into the stock market, mainly on bank and NBFI stocks because of comparatively low prices, market insiders opined.

“The low price earnings ratio of banking stocks has encouraged investors to buy these shares,” said a managing director of a leading brokerage house, preferring anonymity.

However, he thinks people would not invest on the sector all the time, as listed banks are now burdened with huge default loans.

“So, the stock market regulator and merchant banks have to be prompt to bring well performing companies to the market now to meet the investors' demand.”

Turnover, one of the important indicators of the market, rose 17.4 percent to Tk 1,045.52 crore.

Of the traded issues, 165 advanced, 150 declined and 31 closed unchanged on the premier bourse.

Top five gainers of the Dhaka stocks were United Finance, Dhaka Insurance, Imam Button, Meghna Milk and Karnaphuli Insurance.

Premier Bank dominated the turnover chart with 2.61 crore shares worth Tk 44.62 crore changing hands, followed by United Power Generation, IFIC Bank, City Bank and Legacy Footwear.

Chattogram stocks also rose yesterday with the bourse's benchmark index, CSCX, increasing 125.33 points or 1.15 percent to finish the day at 11,004.10.

Losers beat gainers as 153 declined, 90 advanced and 28 finished unchanged on the port city bourse. The stock exchange traded 1.94 crore shares and mutual fund units worth Tk 47.76 crore.