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Stocks break five-day losing jinx

ICB support helps the market


FE Report | November 08, 2018 00:00:00


Stocks rebounded on Wednesday, snapping a five-day losing streak, as investors bought shares at lucrative price levels.

The market started on positive note and the upward trend continued till end of the session with no sign of reversal. Finally the key index rose more than 37 points at closing.

DSEX, the prime index of the Dhaka Stock Exchange, went up by 37.85 points or 0.72 per cent to settle at 5,242, after hitting nearly 23 months low.

Market insiders said lucrative price levels coupled with positive support from state-run Investment Corporation of Bangladesh (ICB) helped the market to close higher.

The ICB managing director Kazi Sanaul Hoq told the FE that they started injecting much-talked investment in the capital market from bond sale proceeds.

"Positive support of state-run ICB played a vital role to rebound the market," said a leading broker.

An analyst, however, said, it is not time to comment whether the positive trend will sustain as many investors are not confident enough to inject fresh funds into stocks ahead of national elections.

Two other indices-the DS30 index and the DSE Shariah Index (DSES)-also closed higher. The DS30 index, comprising blue chips, advanced 10.78 points to finish at 1,853 and the DSE Shariah Index rose 7.09 points to close at 1,207.

LankaBangla Securities said the upward shift in the index is mainly driven by significant positive changes in all of the large-cap sectors.

Engineering sector posted the highest gain of 1.27 per cent, followed by food & allied with 0.74 per cent, banking 0.74 per cent, pharmaceuticals 0.67 per cent

Telecommunication and financial institutions also gained 0.21 per cent and 0.11 per cent respectively.

Turnover, another important indicator of the market, also rose to Tk 4.84 billion, which was 10 per cent higher than the previous day's Tk 4.40 billion.

According to International Leasing Securities the morning positive trend persisted till the end riding on the news that the state-run ICB resumed investment in the capital market from Wednesday as part of the corporation's market supportive measure.

The stockbroker noted that buoyancy on lucrative price levels was observed on all of the sectors in the session which helped the index to close higher.

The gainers took a strong lead over the losers as out of 335 issues traded, 206 closed higher, 80 ended lower and 49 securities unchanged on the premier bourse.

A total number of 122,367 trades were executed in the day's trading session on the DSE with trading volume of 128.43 million securities.

The market capitalisation of the DSE also rose to Tk 3,811 billion on the day which was Tk 3,788 billion in the previous session.

SK Trims Industries dominated the DSE turnover chart with 4.85 million shares worth Tk 207 million changing hands.

The other turnover leaders were Saiham Cotton Mills, VFS Thread Dyeing, BBS Cables and Intraco Refueling Station.

ML Dyeing was the day's best performer, posting a gain of 9.97 per cent while Peoples Leasing was the worst loser, losing 7.27 per cent.

The Chittagong Stock Exchange (CSE) also ended higher after five days with its CSE All Share Price Index-CASPI-gaining 87 points to settle at 16,067 and the Selective Categories Index - CSCX -rising 55 points to finish at 9,735.

The gainers beat losers as 135 issues closed higher, 84 ended lower, with 25 issues remaining unchanged on the CSE.

The port city bourse traded 6.67 million shares and mutual fund units worth Tk 219 million in turnover.

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