DSE sees buying mood on large-cap stocks

The market extended the gaining streak for the third running session Wednesday with increased participation as investors continued on buying mood on large-cap stocks.
The market opened with a positive note which continued throughout the session amid modest volatility. DSEX, the prime index of the Dhaka Stock Exchange (DSE) surpassed 4,400 points level after eight sessions and ended at 4,403.64 points, gaining 10.70 points or 0.24 per cent.
The other two indices also closed positive. The DS30, comprising blue chips gained 4.94 points or 0.30 per cent to close at 1,619.32 points while the DSE Shariah Index (DSES) moved up by 6.48 points or 0.64 per cent to close at 1,007.24 points.
The market participation also got momentum from positive market related issues. The total turnover surpassed Tk 3.0 billion mark after 6-session and amounted to Tk 3.38  billion, which was 20.72 per cent higher compared to previous session's value of Tk 2.80 billion.
The investors' concentration mainly focused on pharmaceutical, telecommunications and cement sectors, accounted for 16.91 per cent, 12.34 per cent and 9.83 per cent respectively of the day's total turnover of DSE.
"The last two session improvement market scenario brought investors confidence to partake in the market," commented International Leasing Securities, in its regular market analysis.
"Tri-session long positivity stimulated investors' re-thinking, creating a pool of upside potential," said IDLC Investments.
The news of 24 per cent increase in foreign direct investment (FDI) knocked their attention very positively, said the merchant bank.
Inflows of foreign direct investment into Bangladesh rose by 24 per cent YOY to $1.6 billion in 2013 although the country witnessed serious political unrest and anti-business climate during the period.
The 26 per cent contribution of FDI in textile and weaving approached investors to hold their positioning. Resultantly, the sector topped at performance list and gained by 1.02 per cent, the merchant bank added.
Zenith Investments said, "Market reversing its trend for the past two days, with steady increase in volume is a good sign, indicating that the reversal is likely to continue for quite  some time".
The gainers took a strong lead over the losers, as out of 297 issues traded, 200 advanced, 73 declined and 24 remained unchanged on the DSE floor.
Most of the sectors ended with modest gain except the banking sector. The banking sector lost market capitalization by 0.53 per cent after a couple of days.
Food and allied sector gained the most with 0.82 per cent as most of the stocks 11 out 16 issues edged up with BATBC gained 0.82 per cent alone.
NBFIs followed next gaining 0.70 per cent. Fuel and power and pharmaceuticals advanced 0.52 per cent and 0.45 per cent respectively. Telecommunications ended 0.36 per cent higher.
Activities increased in the major bourse (DSE) where trade and volume were up by 18.22 per cent and 11.27 per cent respectively. A total of 0.086 million trades were executed with 84.46 million securities of trading volume.
The total market capitalization on DSE stood at Tk 2,895.07 billion against Tk 2,886.92 billion in the previous session.
Lafarge Surma Cement was the most traded stocks with shares worth Tk 254.45 million changing hands followed by, GP, Square Pharma, BSCL and Beximco.
Wata Chemicals was the day's highest gainer, posting a rise of 8.72 per cent while Samata Leather Complex was the day's worst loser, slumping by 4.18 per cent.
The port city bourse, Chittagong Stock Exchange (CSE) also closed marginally higher with its Selective Categories Index - CSCX - gained 20.28 points to close at 8,401.30 points.
Gainers beat losers 132 to 52, with 24 issues remaining unchanged at the port city bourse that traded 8.22 million shares and mutual fund units, turnover value of Tk 259.14 million.