FE Report
Stocks ended higher Sunday, breaking a six-day losing streak with turnover rose slightly as bearish spell in recent sessions created lucrative buying opportunity in several stocks.
The market opened higher in the morning and the upward trend sustained throughout the session as natural demand arose in the market fueled by lucrative prices in many stocks.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), crossed the 4,500-mark after four-day and closed at 4,502.22 points, gaining 46.93 points or 1.05 per cent. It was also the biggest single-day gain in the last 23-session.
The two other indices also closed higher. The DS30 index, comprising blue chips, gained 22.75 points or 1.35 per cent to close at 1,738.41 points. The DSE Shariah Index (DSES), went up by 11.47 points or 1.05 per cent to settle at 1,103.79 points.
Turnover, the most important indicator of the market, improved slightly and amounted to Tk 3.62 billion, registering an increase of 4.44 per cent over the previous day's Tk 3.46 billion.
The investors' attention was mostly focused on pharma, engineering and power - the sectors that accounted for 27 per cent, 14 per cent and 10 per cent of the day's total turnover.
"The first session of the week closed higher amid the heavy buying of shares as sluggish trading throughout the last week created some impetuses for position taking on fundamentally sound stocks," said International Leasing Securities, a stock broker, in an analysis.
"Expectation of good earrings from the June closing stock also encouraged investors to go for buying spree," said the stockbroker.
However, poor turnover prevailed as banks and other financial institutions might have kept themselves on the sideline ahead of June closing, the stockbroker said.
LankaBangla Securities, a stockbroker, said, "After a week long struggle, index bounced back and managed to reclaim 4,500-level. Pharma stocks lead the rally while, bank and engineering stocks was in reassuring position".
Textile sector took a hit becoming one of the top losing sectors, investors might not have reacted positively to the government's decision on the tax at source on export oriented industry.
The government is likely to reduce the tax at source to 0.80 per cent from the proposed 1.0 per cent for the fiscal year 2015-16, which is still 50 BPS higher than what RMG exporters pay at present, said the stockbroker.
"With fiscal year end approaching, market saw influx of funds in pursuit of tax rebate in issues presumed to be 'safe'," said IDLC Investments, a merchant bank, in an analysis.
"The day's session was largely dominated by the tax incentive seekers and stayed upbeat throughout the session," said the merchant bank.
Naturally, investors in pursuit of safe assets preferred large-cap and mid-cap stocks, leading them both to gain around 1.0 per cent, it added.
All large-cap sectors posted positive return except food and allied sector, which lost 0.17 per cent.
NBFIs appreciated the most with 4.53 per cent gain followed by pharmaceuticals 1.65 per cent gain. Banks advanced by 0.99 per cent. Cement went up by 0.76 per cent. Power and telecommunication also gained 0.53 per cent and 0.43 per cent respectively.
The gainers took a modest lead over the losers as out of 311 issues traded, 160 advanced, 110 declined and 41 remained unchanged on the DSE trading floor.
Beximco Pharma remained the day's top turnover leader with shares worth Tk 210.48 million changing hands followed by Lafarge Surma Cement, Square Pharma, newly listed Olympic Accessories and Saif Powertec.
Activities decreased in the major bourse where volume and trade were down by 2.65 per cent and 1.03 per cent respectively. A total number of 0.095 million trades were executed with trading volume of 85.03 million securities.
The market capitalization on DSE stood at Tk 3,188.66 billion against Tk 3,163.45 billion in the previous trading session.
Hakkani Pulp and Papers dominated the day's top gainer chart for the third constitutive session, posting a rise of 9.83 per cent while Samata Leather Complex was the worst loser, shedding 6.86 per cent.
The port city bourse Chittagong Stock Exchange (CSE) also ended higher after six day with its Selective Categories Index - CSCX - gained 66.07 points to close at 8,415.90 points.
Gainers beat losers 117 to 82, with 42 issues remaining unchanged at the port city bourse that traded 9.05 million shares and mutual fund units with turnover of Tk 473 million.
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