Banks lift market as earning season peaks

FE Report
Stocks rallied Thursday for the nine sessions in a row- the longest winning streak in recent months as optimistic investors boosted buys during earnings season.
Stocks moved sharply higher throughout the trading session. DSEX, the prime index of the Dhaka Stock Exchange (DSE), crossed the 4,800-mark after five months and settled at 4,808.39, after gaining 66.41 points or 1.40 per cent. DSEX added 282 points in the nine straight sessions.
The two other indices also ended higher. The DS30 index, comprising blue chips, rose 31.39 points or 1.68 per cent to finish at 1,888.83. The DSE Shariah Index (DSES) advanced 23.98 points or 2.04 per cent to end at 1,195.22.
Turnover, the crucial indicator of the market, remained buoyant and crossed Tk 8.0 billion-mark after two months to Tk 8.13 billion, which was 14 per cent higher than the previous day's Tk 7.15 billion. It was also the highest turnover since June 1, when turnover was Tk 10 billion.
The participants kept their focus concentrated on pharma, power and engineering - the sectors that accounted for 19 per cent, 15 per cent and 14 per cent of the day's total turnover.
"Market enjoyed a strong rally based on large-cap stocks, with smaller ones participating with significant upward moves," said IDLC Investments, a merchant bank, in an analysis.

The merchant bank noted that expected earnings declaration played a major role in pricing the issues while the eventless political frontier yields a facilitating environment.
LankaBangla Securities, a stockbroker, said, "Significant strength was visible among banking stocks as reflected by the 1.5 per cent gain posted by the sector".
"The company specific fundamental data continued to attract attention amid earning season, with investors keeping an eye on economic trend at the same time," said the stockbroker.
"Sound half-yearly earning disclosures have been creating positive mindset among the investors," said International Leasing Securities, a stockbroker, in an analysis.
Investor's activity surged as steady gaining streak has boosted the investors' confidence in recent times, said the stockbroker.
All the large-cap sectors closed higher with NBFIs experienced the highest gain of 3.52 per cent followed by cement 3.51 per cent. Pharmaceuticals posted a significant gain of 2.31 per cent. Banks advanced 1.50 per cent.
Telecommunication moved up 1.15 per cent after two session correction.  Food and allied and fuel and power sectors gained 0.97 per cent and 0.40 per cent respectively.
The market breadth remained positive as out of 316 issues traded, 177 closed higher, 100 lower and 39 remained unchanged on the DSE trading floor.
Activities increased in the major bourse where trade and volume were up by 7.31 per cent and 23.46 per cent respectively. A total number of 0.152 million trades were executed with trading volume of 174.10 million securities.
The market capitalisation on DSE stood at Tk 3,390.12 billion against Tk 3,343.35 billion in the previous trading session.
Lafarge Surma Cement was the day's top turnover leader with shares of Tk 677 million changing hands followed by Square Pharma, RAK Ceramics, ACI and KPCL.
Al-Haj Textiles was the day's best performer, posting a rise of 9.98 per cent while ICB First NRB First Mutual Fund was the day's worst loser, plunging by 5.26 per cent.
The port city bourse Chittagong Stock Exchange (CSE) closed higher with its Selective Categories Index - CSCX - gained 117 points to close at 8,965.
The gainers took a lead over the losers as out of 265 issues traded, 150 advanced, 77 declined and 38 remained unchanged at the port city bourse. A total of 13 million shares and mutual fund units changed hands with total value of Tk 526 million.
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