Sunday, December 6, 2015, Agrahayan 22, 1422 BS, Safar 23, 1437 Hijri


Market Review
Stocks rise for 3rd running week on regulatory decisions
Business Correspondent
Published :Sunday, 6 December, 2015,  Time : 12:00 AM  View Count : 15

Both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) rose for the third consecutive week that ended Thursday as investors injected fresh investment in prospective stocks being encouraged by the positive regulatory decisions, dealers said.
DSEX, the prime index of the DSE, gained 67.29 points or 1.47 per cent to a month-high at 4,641.04, while the DS30 index, comprising blue chips, rose 42.59 points or 2.46 per cent to 1,772.23 and the Shariah Index DSES gained 23.08 points or 2.10 per cent to finish the week at 1,124.23, compared the previous week.
At the CSE its Selective Categories Index CSCX gained 144.49 points or 1.69 per cent to end the week at 8,651.72, against the previous week.
Of the usual five trading sessions, four closed higher while the other slid.
The total turnover on the DSE in the week was Tk 25.08 billion, against  Tk 21.96 billion in the week before. The average daily turnover was Tk 5.02 billion, up 14.20 per cent from the previous week's average of Tk 4.39 billion.
Engineering, pharma and power sectors, drew the highest 25 per cent, 16 per cent, 13 per cent respectively of the week's total turnover.
"Mixed macroeconomic and capital market news exposure prompted investors to demonstrate mixed investment plan.Participants took the path of profit booking alongside reshuffling strategy throughout the five sessions of the week," said merchant bank IDLC Investments.
"Especially, the securities regulator's imposition of two year lock-in period on sponsor-directors' bonus shares of newly listed companies, boosted up investors' confidence pushing DSEX beyond 4,600-mark during the week," said the merchant bank.
As the last month of the year started-off during the week, investors tuned-up their investment insights which invigorated the market participation, the merchant bank observed.
Analysts said the regulatory decisions, especially imposition of two year lock-in period on sponsor-directors' bonus shares of newly listed companies jacked investors' confidence up.
The securities regulator Monday last took a number of decisions, including imposition of two year lock-in period on sponsor-directors' bonus shares of newly listed companies and extension of deadline for transactions in the accounts having negative equities till December 2016.
"Stocks ended the week with consistent gain as the market was driven by industry specific news and economic updates," said LankaBangla Securities, a stockbroker, in an analysis.
"As market has already digested quarterly earnings, all eyes are looking to see how market triggers impacted the bellwethers stocks," said the stockbroker.
International Leasing Securities, a stockbroker, said, "Regulatory decisions like extension of deadline for transactions in the accounts having negative equities till December 2016, allowing the provisioning against the un-realized losses of stock brokers and merchant banks through five quarters during December 2015 to December 2016 and imposing the two-year lock-in on the bonus shares owned by sponsor-directors of newly listed companies made the investors buoyant".
Royal Capital, a stockbroker, said, "The market continued value maximization with lower volatility which evidenced in the last week after a long period of downfall". The market breadth remained unchanged as out of 326 traded issues, 149 closed higher, 149 lower and 28 remained unchanged on the DSE trading floor last week.
The market capitalisation of the DSE went up by 1.59 per cent as it was Tk 3,150.59 billion on the opening day of the week and it stood at Tk 3,200.64 billion on closing day of the week. LR Global Bangladesh Mutual Fund One recommended dividend last week. The Mutual Fund recommended 10 per cent cash dividend for the year ended on September 30, 2015.
BSRM Steels dominated the week's turnover chart with shares of Tk 1.08 billion changing hands during the week followed by Beximco Pharma Tk 991 million, IFAD Autos Tk 919 million, Square Pharma Tk 757 million and KDS Accessories Tk 680 million.
Desh Garment was the week's best performer, posting a rise of 20.33 per cent while Savar Refractories was the week's worst loser, plunging by 17.33 per cent.







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