Stocks end week on positive note

Shares on the Dhaka Stock Exchange closed the week positively on the back of buoyant transaction amid sound dividend declaration by some large cap companies. 

The broader DSEX index advanced 16.7 points, or 0.3 percent, to end at 6,018.3 yesterday. Daily turnover rose 13.8 percent to Tk 662.99 crore.

The market started the session on a positive note and witnessed volatility throughout the session amid mixed reaction of investor towards corporate announcement, said UCB Capital Management in its daily market analysis.

Large cap companies such as Beximco Pharma, Beximco and Titas Gas declared handsome dividend for the year that ended in June.

Three banks also announced hefty earnings in the third quarter, prompting investors to inject fresh funds into the market, said market insiders.

The seven banks that were fined in the first week of October for their overexposure to the stockmarket brought down their exposure within the permissible limit following the central bank's strict monitoring, said a senior official of a private bank.

The central bank penalised the banks for violating stockmarket rules by way of miss-reporting on share investment and overexposure.

The move hit the market negatively as the overexposed banks started to sell shares pushing the main index below 6,000 points on Monday.  This week the banks appealed to the central bank seeking waiver of the penalties.

As a result, the market rode out the selling pressure and the price indices started to move upward, added the banker.

Of the five trading days of the week, two days closed in the red with combined fall of 74 points. The three other days saw a combined gain of 53 points.

Most of the heavyweight equities reported moderate loss.

Gemini Sea Food was the highest traded share with a turnover of Tk 32.69 crore, followed by Brac Bank with Tk 28.5 crore.