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Stocks keep gaining for second day

Turnover scales Tk 11b on prime bourse

FE Report | July 12, 2018 00:00:00

Stocks ended higher for the second straight session on Wednesday with turnover hitting fresh eight-month high on the Dhaka Stock Exchange (DSE).

Turnover, an important indicator of the market, stood at Tk 11.15 billion on the country's premier bourse, rising further by 2.50 per cent over previous day's mark of Tk 10.88 billion.

It was the largest single-day transaction in the last eight months since November 20, 2017, when the turnover totaled a record Tk 11.58 billion.

Market insiders said investors' enthusiasm sustained as local and foreign investors remained active on the market amid positive expectation.

"The rising trend of market turnover has been largely supported by engineering, textile and miscellaneous sectors," said an analyst at a leading brokerage firm.

The engineering sector accounted for 18 per cent of the day's total turnover, followed by textile with 17 per cent and miscellaneous 10 per cent.

A stockbroker said the lower deposit rates helped increasing the fund flow in the capital market to some extent.

"The interest rates on bank deposits and dividend expectations from June-closing companies continued to encourage investors in taking position on stocks," he added.

The market started with an upbeat note and the core index of the major bourse crossing the 5,450-mark, gaining over 100 points within first hour of trading.

But profit-booking in the later part of the session led the prime index to close only 7.94 points high.

DSEX, the prime index of the DSE, settled at 5,379, advancing 7.94 points or 0.15 per cent over the previous day.

According to International Leasing Securities, financial institution, banking and ceramic sectors saw investors' buying spree while paper, textile, engineering and food sectors witnessed liquidation.

The stockbroker noted that the total turnover continued to break its year-high record and reached Tk 11.15 billion, which indicates about regaining the investors' confidence.

The DS30 index, comprising blue chips, also advanced 3.48 points to finish at 1,915 points. But, the DSE Shariah Index fell 4.03 points to close at 1,267.

"Investors showed buying appetite on June-ending companies amid positive expectations while some rebalanced their portfolio ahead of earnings and dividend decorations," commented EBL Securities.

The large-cap sectors showed mixed performance. The financial institutions sector posted the highest gain of 1.40 per cent, closely followed by banking with 1.26 per cent, telecommunication 0.27 per cent and power 0.01 per cent.

On the other hand, engineering posted the highest loss of 1.43 per cent, followed by food & allied with 0.75 per cent and pharmaceuticals 0.23 per cent.

Of the traded issues, 157 declined, 153 advanced and 31 issues remained unchanged on the DSE trading floor.

The port city bourse CSE also finished higher with its CSE All Share Price Index - CASPI - advancing 88 points to settle at 16,637 and the Selective Categories Index - CSCX - gaining 56 points to finish at 10,068.

The losers beat gainers as 122 issues closed lower, 110 ended higher, with 18 issues remaining unchanged on the CSE.

The port city bourse traded 18.75 million shares and mutual fund units worth more than Tk 585 million in turnover.


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