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Power sector shares dominates DSE turnover chart

  • Published at 10:14 pm October 30th, 2018
web-DSE-File photo of Dhaka Stock Exchange Limited
File photo of Dhaka Stock Exchange Limited Mehedi Hasan/Dhaka Tribune

According to data by the DSE, the sector contributed 8.41% of total turnover in the capital market in July, 7.54%  in August, and 17.10% in September

The fuel and power sector has achieved the second position at the Dhaka Stock Exchange (DSE) on the basis of sectoral trading, in the first quarter (July-September) of the current fiscal year.

According to data by the DSE, the sector contributed 8.41% of total turnover in the capital market in July, 7.54%  in August, and 17.10% in September.

Power sector shares of the premium bourse are becoming a growing attraction for investors since most of the listed companies recently reported increased earnings per share (EPS), good dividends, and sound market capitalization.

Out of 19 listed companies in the sector, 16 are listed in the ‘A’ category, meaning the companies regularly give dividends to their shareholders. Seven of these are private power companies with active presence in the capital market.

The remaining three listed firms fall under the categories of B,N, and Z.

Speaking to the Dhaka Tribune, Chief Financial Officer of United Group Mohammad Ebadat Hossain Bhuiyan said that there is more demand and potential in the power sector now than any other sector in the capital market. 

“The government is relying more on private sector companies for power generation,” explained Ebadat, addingthat investor confidence on the sector is also rising. 

He furtheradded that profits of these private companies either increase or remain unchanged, but never decrease.

Professor Abu Ahmed, a capital market analyst, said that although all companies are not performing well, the contribution of three companies offering good returns and dividends, have made the sector attractive to investors.

DSE data revealed that among the 19 listed companies in the sector, United Power, Khulna Power, and Summit Power have the most transactions.

Professor Abu Ahmed claimed dynamic management efforts as the reason behind the success of these companies.

“Declining interest in the banking sector is also driving investors towards the power sector,” he added, explaining that foreign investors are also showing interest in this sector, especially in alternative energy sources.

The engineering, textile, and pharmaceuticals and chemical sectors also reported major turnovers at the end of September making up for 18.73%,14.93%, and 10.95% of total transactions, respectively.