DGEN crosses 4,700-mark

FE Report

The market maintained its bullish run Wednesday with DGEN crossing 4,700 points mark as investors' confidence boosted up further by stable political frontier and favorable macroeconomic phenomenon.

The General Index of the Dhaka Stock Exchange (DGEN) surged 86.73 points or 1.85 per cent to close the session at 4,770.49 points, peaked 9-month high since September 25, 2012.

The others two indices also ended green ---- the free float based index DSEX went up by 24.14 points or 0.55 per cent to close at 4,345.45 while the blue chip index DS30 gained 9.32 points or 0.57 per cent to close at 1,643.47 points.

The total market turnover stood at Tk 10.40 billion which was 19.7 per cent lower than previous session's two year's high value of Tk 12.94 billion.

Akter H Sannamat, managing director of Union Capital said the market is a good position and gradually improving with growing investors' confidence to the market.

"The investors' confidence grew over political easiness, soft money market, government's positive steps and collective efforts of all stakeholders for betterment of the market," he said.

"Positive political frontier and favorable macroeconomic phenomenon especially, better export growth with RMG's export being $20 billion, highest ever, further pushed investors' sentiment positively," commented IDLC Investments, in its daily market analysis.

Resultantly, DGEN highlighted a repeat uptrend, closed at 4,770.49 points, highest within last 188 sessions. Investors' lofty confidence over continuation of Bull Run made turnover to record at Tk 10.40 billion, the merchant bank said.

Last few days' rally in fuel and power sector took a halt on the day due to profit taking which was also observed in textile sector. Activity centralization was good at fuel and power (20.68%), Telecommunication (13.75%) and Pharmaceutical (10.16%) sector, the merchant bank added.

"The market continued to surge ahead with heavy volume activity. Strong buying pressure on specific securities continued to push the index with vigor," stated LankaBangla Securities.

In the morning session, market reached its day high as the banking sector turned positive strongly after a long period of silence. But later the session was marked by skeptical profit booking and abatement of bank's rally, the stock broker said.

Out of 290 issues traded, 118 advanced, 158 declined and 14 remained unchanged in the primer bourse.

The major sectors showed mixed performances. Telecommunications was the biggest gainer for the second consecutive session with 7.70 per cent gain followed by NBFIs which gained 2.74 per cent.

Banks returned to positive with 2.37 per cent gain after remaining in red for the last few sessions. Fuel and power and pharmaceuticals faced correction, losing 1.10 per cent and 0.51 per cent respectively.

Activities declined slightly in the prime bourse. A total of 0.203 million trades were executed with 185.82 million securities of trading volume.

The market capitalization of the DSE stood at Tk 2,702.33 billion against Tk 2,670.61 billion in the previous trading session.

GrameenPhone topped the turnover's chart for the second consecutive session with a turnover of Tk 921.71 million, along with a steep price appreciation of 8.5 per cent.

Apex Tannery was the day's top gainer for the second running session, posting a rise of 9.97 per cent while Imam Button was day's worst loser, slumping by 8.86 per cent.

The Chittagong Stock Exchange (CSE) also ended higher with the Selective Categories Index gained 47.26 points to close at 8,545.82 points.

Losers beat gainers 124 to 88, with five issues remaining unchanged on the port city bourse that traded 17.43 million shares and mutual fund units, turnover value of Tk 772.49 million.

Meanwhile, trading on the both bourses --- DSE and CSE will begin at 11am instead of 10:30am and continue till 2pm instead of 2.30pm from today (Thursday) following Ramadan.
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