Stocks posted a modest gain in early trading on Sunday as optimistic investors showed their buying binge on large-cap stocks amid high expectations.
Following last week’s upbeat note, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) opened on an upward trend amid rising trading activities.
Within the first 30 minutes of trading, the DSEX advanced more than 17 points while the CSE All Share Price Index (CASPI) of the port city’s bourse rose 50 points at 10:30am when the report was filed.
DSEX, the prime index of the DSE, went up by 17.48 points, or 0.34 per cent, to reach 5,122 points at 10:30am.
DS30, comprising blue chips, also gained 1.71 points to reach 1,763 and the Shariah Index (DSES) rose 1.87 points to reach 1,164 points till then.
At 10:30am, turnover, an important indicator of the market, on the main bourse stood at Tk 2.07 billion, which was Tk 1.43 billion at the same time the previous day.
Market analysts said investors’ confidence boosted in recent times riding on various measures taken by securities regulator to stablise the market and resumption of economic activities.
Investors anticipate the market would rise further due to huge fund flow into the financial market and faster economic recovery from a stagnant situation than predicted before, said a merchant banker.
The market has been rising due mainly to the growing confidence as the new commission has taken various measures and tough stance against wrongdoers, said an analyst at a leading brokerage firm.
The stock market regulator continued with its tough stance on gamblers and came up with a number of conditions for junk stocks and slapped several companies with big fines as part of its efforts to go tough on the wrongdoers.
Of the issues traded till then, 183 advanced, 79 declined and 66 remained unchanged.
Insurance Companies dominated the turnover chart with Nitol Insurance becoming the most traded stocks till then with shares worth Tk 150 million changing hands, closely followed by Continental Insurance, SK Trims, Republic Insurance and Delta Brac Housing Finance.
The port city bourse also saw an upward trend till then with its CSE All Share Price Index - CASPI - gaining 50 points to stand at 14,623, also at 10:30am.
The Selective Categories Index – CSCX also rose 25 points to reach 8,782 till then.
Of the issues traded till then, 64 gained, 19 declined, and 17 issues remained unchanged with Tk 22 million in turnover.