Stocks edged marginally higher Monday, snapping five consecutive sessions of losing streak as investors went on late hour buying spree on large-cap stocks.
Analysts said the market rebounded backed by late hour buying spree as notable price correction in recent period has lured the investors to take position in different issues at lucrative price levels.
The market opened with a positive note, gaining nearly 16 points within first 30 minutes of trading, but in the mid-session landed into negative zone. However, last 90 minutes gained steadily, eventually ended marginally higher.
DSEX, the prime index of the Dhaka Stock Exchange, went up by 21.20 points or 0.46 per cent to settle at 4,536.05, after slumping nearly 135 points in the past five consecutive trading sessions.Stocks break five-day losing spell
"After a total loss of nearly 135 points in last five consecutive sessions, the bourse found a ground at 4,500-mark 'psychological' level," said IDLC Investments, a merchant bank, in an analysis.
"Since, market faced an erosion of 5.9 per cent during last month, opportunistic investors' sense an upbeat reversal primarily riding on previous month's eroded large-cap issues with sound fundamentals," said the merchant bank.
Turnover improved slightly, but remained low, as the total turnover on DSE stood at 2.90 billion, which was 8.46 per cent higher than the previous day's Tk 2.67 billion.
Overall activities remained confined on engineering, pharma and power sectors, where they captured 23 per cent, 17 per cent and 12 per cent respectively of the day's total turnover.
BRAC EPL, a stockbroker, said, "The price appreciation of some of the large-cap stocks such as GP, Square Pharma, Lafarge Surma Cement and Olympic, helped the market turn around".
GP, Square Pharma, Lafarge Surma Cement and Olympic gained 1.0 per cent, 0.3 per cent. 1.2 per cent, 2.9 per cent and 1.9 per cent respectively on Monday.
"Group of investors was in risk off mode as they perked their fund in defensive stocks," said LankaBangla Securities, a stockbroker, in its regular analysis.
However, market turnover value remained at low level as overall market sentiment remained wary of market outlook, said the stockbroker.
Time limit for banking sector for adjustment of over exposure to the capital market remains unresolved. As per the deadline set in Bank Companies Act, the banks will have to adjust their over exposure to capital market by July, 2016, said the stockbroker.
Telecommunication, cement and pharma sector recorded gain while the profit booking selling pressure prevailed in the banking sector.
Among the major sectors, cement gained 2.2 per cent followed by telecommunication 1.0 per cent, pharmaceutical 0.8 per cent, food and allied 0.6 per cent, NBFIs 0.3 per cent and power gained 0.2 per cent while bank edged 0.6 per cent down.
The gainers took a modest lead over the losers as out of 318 traded issues, 165 closed higher, 102 lower and 51 remained unchanged on the DSE trading floor.
IFAD Autos dominated the day's turnover chart with shares of Tk 258 million changing hands followed by Square Pharma, GP, Lafarge Surma Cement and Beximco Pharma.
Hakkani Pulp and Paper was the day's best performer, posting a rise of 9.85 per cent while Shaympur Sugar Mills was the day's worst loser, plunging by 8.57 per cent.
The port city bourse Chittagong Stock Exchange (CSE) bounced back with its Selective Categories Index - CSCX - gaining 52.59 points to end at 8,440.
Gainers beat losers 110 to 94, with 28 issues remaining unchanged on the port city bourse that traded 6.07 million shares and mutual fund units with a value of Tk 205 million.
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