Stocks witnessed steep gain Tuesday after previous session's mild correction as investors snapped up large cap issues propelling the turnover higher.
The market started with an upbeat note, which continued till the market's closure. DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 49.48 points or 1.05 per cent to close a fresh seven-month high of 4,759.39 points.
The other two indices also ended higher. The DS30, comprising blue chips, rose 39.42 points or 2.16 per cent to close at 1,858.40 points. The DSE Shariah Index gained 15.81 points or 1.42 per cent to close at 1,126.53 points.
Turnover at DSE surpassed the Tk 8.0-billion-mark once again with the total value hitting Tk 8.36 billion and registering an increase of 25 per cent over the previous session's value of Tk 6.68 billion.
The investors' attention was mostly concentrated on pharmaceuticals, engineering and power - the sectors that accounted for 19.62 per cent, 17.53 per cent and 11.20 per cent respectively of the day's total turnover.
"Bidding on last day's slight correction, market regained the momentum with investors' strong participation in few stocks," commented IDLC Investments, a merchant bank, in its market analysis.
As prime index stayed above 4,700 points level for the third consecutive sessions with robust turnover, investors were gaining confidence on fresh funds injection, said the merchant bank.
"The market witnessed a typical session of a vibrant bull market as the investors' optimism was at full swing after previous session's slow outlook," said International Leasing Securities.
Several sectoral leading issues such as BSRM Steels, MJL BD, Lafarge Surma and Delta Life Insurance captured most the investors' attention in the day's trading, said the International Leasing.
LankaBangla Securities said: "Index is back on positive momentum after first breaking its 'psychological' threshold of 4,700 points".
Though market breadth ended negative with 137 declining stocks against 114 winning, 25 per cent up in market turnover has mostly generated by long position on fundamentally sound stocks, which indicates that growing confidence among the investors, the stock broker said. Among the major sectors, cement posted the highest gain of 4.6 per cent followed by engineering 2.6 per cent and miscellaneous 2.4 per cent. Only non-banking financial institutions posted negative return of 0.21 per cent.
Pharmaceuticals gained 1.02 per cent with three of its issues featuring on the top gainers' chart. Telecommunication closed 0.33 per cent higher. Fuel and power and food and allied sectors advanced 0.13 per cent each. Banks closed flat gaining 0.03 per cent.
The losers, however, took a lead over the gainers as out of 301 issues traded, 137 declined, 114 advanced and 50 remained unchanged on the DSE floor.
Activities increased in the major bourse (DSE) where trade and volume were up by 18.73 per cent and 35.56 per cent respectively. A total number of 0.151 million trades were executed with 170.27 million securities of trading volume.
The total market capitalisation of the DSE stood at Tk 3,210.73 billion against Tk 3,189.68 billion in the previous session.
Beximco Pharma was the day's most traded stocks with shares worth Tk 560.49 million changing hands followed BSRM Steels, NJL BD, Beximco and Lafarge Surma Cement.
ACI Formulations was the day's highest gainer, posting a rise of 10 per cent while BD Building was the day's worst loser, slumping by 6.27 per cent. The port city bourse, Chittagong Stock Exchange (CSE) also closed higher with its Selective Categories Index - CSCX - gained 62.83 points to close at 8,863.46 points.
Losers beat gainers 133 to 70, with 30 issues remaining unchanged at the port city bourse that traded 13.34 million shares and mutual fund units, turnover value of Tk 537.29 million.
Source: The Financial Express
