Share netting move to boost stocks: analysts
Stocks returned to the black last week after the securities regulator decided to allow share netting.
Share netting is a financial adjustment facility that permits investors to buy and sell shares of the same company on the same day.
As per the regulatory decision, investors can now net shares of all companies under 'A', 'B', 'G' and 'N' categories; however, 'Z' category shares remain out of netting purview.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange, crossed 4,900 points after three-weeks and closed at 4,941.52 points, gaining 117.94 points or 2.45 percent. DSES, the shariah index of Dhaka bourse, rose 35.32 points or 3.10 percent, to close at 1,174.02 points.
The regulator also extended the deadline to December 31 of 2015 for merchant banks and stockbrokers to provide for unrealised losses.
The consent for share netting, and extension of deadline for provisioning of unrealised losses will increase market turnover, said LankaBangla Securities.
The market observed a reversal last week as most of the stocks generated positive returns after consecutive sluggishness in the previous weeks, the stockbroker said.
In 2015, investors might be looking to reap benefits from falling commodity prices and interest rate, it said.
"The week remained volatile as nervous investors tried to set expectations anticipating better economic results in the new year,” IDLC Investments said.
“Turnover remained weak throughout the week partly due to political uncertainty. The week observed two consecutive nationwide strikes which also played a role in setting the investors' mood,” the investment banker said.
The daily turnover for the week averaged Tk 209 crore, registering a decline of 6.66 percent over the previous week of Tk 224 crore.
All the major sectors gained last week: cement appreciated sharply by 7.86 percent riding on the sector's heavy weight Lafarge Surma that gained 14.4 percent alone.
Pharma posted a decent return of 2.26 percent, followed by banks 1.79 percent, non-bank financial institutions 1.34 percent, food 1.35 percent, power 1.14 percent and telecoms 1.13 percent.
Gainers outpaced losers as 231 advanced, 58 declined and 24 remained unchanged out of 299 issues that traded on the DSE.
Lafarge Surma Cement dominated the week's top turnover chart for the second consecutive week with 34.06 lakh shares worth Tk 42.42 crore changing hands, followed by MJL Bangladesh, Beximco Pharma, Grameenphone and Desco.
Al-Haj Textile was the week's top gainer, posting a rise of 24.13 percent, while Shahjibazar Power Company was the worst loser, plunging by 16.86 percent.
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