FE Report
Stocks extended gaining streak for the fourth running session Monday, pulling the prime index of the Dhaka Stock Exchange (DSEX) four months high level, spurred by investors buying spree amid optimism.
After four hour trading, the DSEX went up by 23.00 points or 0.54 per cent to close at 4,279.43 points, highest since July 17 this year.
The strong buying spree has led the total turnover at DSE to reach to two-month high and stood at Tk 5.80 billion, which was 16.23 per cent higher over the previous session.
The gain was largely attributable to the heavy weight engineering, fuel & power and NBFI sectors that advanced 3.46 per cent, 2.40 per cent and 1.79 per cent respectively.
Most of the textile companies moved high over the course of the trading day, pushing the whole textile sector to the brink of highest contributor, contributing 21.7 per cent of the market turnover.
Prices of more than 66 per cent issues closed positive, as out of 287 issues traded, 192 advanced, 73 declined and 22 remained unchanged.
"The positive trend of the market for the last few days has boosted investors' sentiment to the market," said Akter H Sannamat, managing director of Union Capital.
"The institutional investors also came up as political turmoil eased somewhat and they hoped for an end in political strife which contributed market index and turnover up," he said.
"Amid no remarkable positive political developments, investors seemingly highlighted confidence and looked beyond the turmoil with optimistic market outlook, pursuing active investment strategy in search of higher risk adjusted return," observed IDLC Investments, a leading merchant bank.
In the last 15 trading sessions, 12 session closed green. "This continuous upward move is gradually building confidence among investors," said LankaBangla Securities, a leading stock broker.
"Investors are probably coming out of political fear and believing that market has already discounted these factors," said the stock broker.
Turnover activity is also gaining momentum gradually. Market interest shifted from banking sector and saw fuel & power, engineering and textile sectors were vibrant.
"Significant strength emerged among turnover and the indexes as both the factors showed a notable move over the course of the trading day. With the stretched positivity, the indexes and the turnover managed to reach new record closing highs," said Zenith Investments.
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