8 days ago

Buoyant stocks drive index to 5,559, highest in 7 weeks

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Stocks stayed upbeat for the fourth straight session on Sunday, with turnover crossing Tk 9 billion after nearly two months, as buoyant investors kept their buying spree in lucrative shares.

Investor sentiment remained optimistic as institutional investors, including Investment Corporation of Bangladesh, put fresh bets on stocks that became cheap after sharp corrections in recent times.

The recent news that the government may allow public servants to trade in the share market also boosted investor confidence, market analysts said.

In such a favourable environment, daily turnover reached Tk 9.09 billion, climbing further by 18 per cent over the previous session. It was the biggest single-day turnover since May 13 this year.

Substantial price hikes of large-cap and blue-chip stocks helped the market stay afloat as they have a significant impact on the index.

Subsequently, the prime index of the Dhaka Stock Exchange (DSEX) soared more than 61 points or 1.11 per cent further to 5,559, the highest in seven weeks.

The prime index of the DSE gained more than 230 points in the past four trading days while market-value surged by Tk 111 billion during the time.

"The market recovery has been aided by continuous price appreciation in the majority of stocks as investors kept on chasing quick rallies owing to heightened optimism across the trading floor," said EBL Securities.

BAT Bangladesh, Khan Brothers PP Woven Bag Industries, Grameenphone, National Bank and BRAC Bank were top positive index contributors. They jointly accounted for a 24-point rise of the key index.

BAT Bangladesh, the third largest listed firm in terms of market cap, saw 5.6 per cent price hike, contributing more than a 12-point rise of the key index.

The blue chip index DS30, a group of 30 prominent companies, rose 13 points to 1,964 while the DSES Index, which represents Shariah-based companies, gained 6 points to 1,215.

Buyers continued their dominance, helping the majority of shares to extend their price appreciation, said the EBL analysis.

Investors were mostly active in the pharmaceutical sector, which accounted for 16 per cent of the day's total turnover, followed by food (11 per cent) and banking (10 per cent) sectors.

Most of the sectors posted gains, with the mutual fund experiencing the highest gain of 4.3 per cent driven by LR Global Bangladesh Mutual Fund One that surged 10 per cent alone.

More than 76 per cent traded stocks saw price surge, as out of the 398 issues traded, 305 closed higher, 69 ended lower and 24 remained unchanged on the DSE trading floor.

Sea Pearl Beach Resorts became the most-traded stocks with shares worth Tk 346 million changing hands, followed by BAT Bangladesh, Orion Pharma, Salvo Chemicals, and Asiatic Lab.

The Chittagong Stock Exchange (CSE) also ended higher with its All Share Price Index (CASPI) rising 249 points to 15,713 and the Selective Categories Index (CSCX) gaining 145 points to 9,460.

The port city bourse traded 11.46 million shares and mutual fund units, leading to a turnover of Tk 1.80 billion.

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