Kamruzzaman Bablu :
Stock markets have performed well during the first half of 2017, thanks to revived investors’ confidence during the period.
Catalysts such as strong year-end earnings, higher dividends coupled with positive economic outlook have played important roles at making the market more vibrant, said several analysts.
Investors were seen injecting fresh funds in the market during the past six months amid low returns from parking money with banks.
The benchmark index, DSEX moved up by 12.3percent in the first half excluding the year-end cash dividends that are already disbursed. Daily average turnover at the Dhaka Stock Market stood at Tk566cr.
Market has been notably vibrant in the first half and there is hardly any reason for that to change in the coming second half, said Ahmed Rashid Lali, president of Dhaka Stock Exchange Brokers Association of Bangladesh.
‘There will always be ups and downs in the market, but the important factor is to have a vibrant market.’
Furthermore, the market stayed positive in the last couple of weeks, which indicates that investors have welcomed the finalised national budget, he added.
Stocks edged higher in the holiday-shortened week last Thursday, extending the rally for the second consecutive week.
Investors were seen generally optimistic about the market last week, said traders from several stock brokerages. They said, issues including delaying implementation of VAT law, reduction of corporate tax for RMG manufacturers played an important role at boosting confidence among investors.
Participation in the Dhaka Stock Exchange increased moderately by 15.1percent to amount an average daily turnover of Tk715cr last week. There was only two trading sessions last week as compared to five sessions in the previous week.
The benchmark index, DSEX closed at 5,656.1 points on last Thursday after gaining 57.0 points or 1.0percent over the week while CSE ASI advanced 174 points or 1.0percent to end at 17,516.7 points.
Textile equities contributed 17.9percent of the week’s total turnover, said the weekly market report of UCB Capital Management Ltd.
Peninsula Chittagong Limited secured the highest weekly gain of 17.4percent while Savar Refractories Limited turned out the worst loser with its price declining by 7.3percent.
LankaBangla Finance Ltd secured leadership position on the top turnover chart with a turnover of Tk67cr over the week with its share price remaining flat by the end of week.
DS30, the blue-chip index gained 12.4 points or 0.60percent to end at 2,083.8 points, while DSE Shariah based index advanced 10.9 points or 0.85percent to close at 1,296.7 points.
Among the traded issues 227 gained, 81 declined and 25 remained unchanged during the week.
The Dhaka Stock Exchange currently has a market capitalisation of BDT 380,100cr with the benchmark index, DSEX up by 12.3percent since beginning of this year.
