FE Report
Stocks witnessed a robust gain Wednesday with key index of the major bourse crossing the 'psychological' threshold of 5,000-mark again as the investors went for buying spree amid optimism.
The market opened with an upward trend which sustained throughout the session. DSEX, the prime index of the Dhaka Stock Exchange (DSE) crossed the 5,000-mark after three sessions and closed at 5,005.65 points, gaining 70.87 points or 1.43 per cent.
The other two indices also saw steep gain. The DS30, comprising blue chips jumped 48.17 points or 2.64 per cent to close at 1,870.94 points. The DSE Shariah Index rose 23.35points or 2.01 per cent to close at 1,180.02 points.
Trading at DSE remained vibrant with total turnover accumulating to Tk 8.46 billion, registering an increase of 26.64 per cent over the previous day's turnover of Tk 6.68 billion.
The investors' attention remained focused on power, engineering and pharma - the sectors that accounted for 21 per cent, 20 per cent and 17 per cent respectively of the day's total turnover.
"Market continued to trade at green zone throughout day and closed above the 'psychological' level of 5,000-mark with strong footing," said LankaBangla Securities in an analysis.
Some encouraging quarterly declarations came, supporting the market and restored confidence of investors after a weeklong correction, said the stock broker.
IDLC Investments said: "Soaring participation, particularly buying mood in mid-cap and micro-cap stocks assisted the upbeat vibe in market".
Investors' preference to some micro caps pushed up the volatility further, with 111 out of 308 traded issues changing more than 2.0 per cent of their respective price, said the merchant bank.
The market peaked up right where it left off in previous session in an attempt to regain the investors' confidence, said International Leasing Securities.
"The investors' growing optimism regarding the market's turnaround was confirmed by the 27 per cent increment of daily turnover," said the International Leasing.
"Market just bounced off and moved up from the bull trend line started from July the 20th. It is starting to appear more as a bump and run reversal pattern," said Sheltech Brokerage.
Zenith Investments said: "Although, there is still room for enough doubt whether market have really changed its course of direction for long run, it is suffice for investors to exercise caution during trading until further confirmation from the market is received".
Almost all the sectors have recorded gains after a long period of time. Banks saw a correction of 0.58 per cent after previous day's marginal gain. The other large cap sectors closed higher with power registering the highest gain of 3.51 per cent.
NBFIs appreciated by 1.57 per cent. Food and allied and pharmaceuticals also posted decent gains of 1.26 per cent and 1.38 per cent respectively. Telecommunication advanced by 0.89 per cent.
Gainers outpaced losers as out of 308 issues traded, 171 advanced, 108 declined 29 remained unchanged on the DSE floor.
The port city bourse, Chittagong Stock Exchange (CSE) also witnessed steep gain with its Selective Categories Index - CSCX - advanced 127.30 points to close at 9,414.70 points.
Gainers beat losers 101 to 89, with 34 issues remaining unchanged at the port city bourse that traded 15.35 million shares and mutual fund units, turnover value of Tk 605.32 million.
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