DSE turnover hits two-month high

FE Report Dhaka stocks registered a 1.99 per cent gain Sunday, the steepest single-day spike in the last 10-week with turnover hitting two-month high, as investors went for buying spree amid fresh optimism. The General Index of the Dhaka Stock Exchange (DGEN) crossed the 3,800 points mark and ended at 3,816.75 points, gaining 74.53 points or 1.99 per cent as the market headed upwards in the very beginning. The other two indices also posted significant gains --- DSEX went up by 80.54 points or 2.26 per cent to close at 3,639.80 while the blue chip index DS30 advanced 20.90 points or 1.58 per cent to close at 1,343.22. The turnover at the DSE witnessed significant improvement, marking a 41-session high value of Tk 2.61 billion which was 55.3 per cent higher than that of the previous session. "While improvement in the political front helped push up sentiment a bit, Q1 earnings was at the heart of day's activities. Simultaneously, budgetary expectations also seemed to create ripples across the market," stated IDLC Investments, in its daily market analysis. "Favorable macro-economic data and highly liquid money market is making the market vibrant again," commented LankaBangla Securities. Foreign exchange reserve is piling up without any pause. Latest data says that the forex reserve was US$ 15.06 billion. On the other hand, domestic credit demand is low. So, there is a liquidity glut forming in the banking sector, said the stock broker. Also prevailing anticipations about some positive governmental moves for the betterment of the capital market seem to have driven the indices to get geared up, the stock broker added. "After passing quite a successful week, market shone with investor confidence as political pressure eased down a lot. Liquidity got improved by a big time which consequently improved sectoral movement," commented zenith Investments. Of the 275 traded issues at DSE, 237 advanced, 37 declined and one remained unchanged. A total of 0.10 million trades were executed, with 87.0 million shares in trading volume. The market capitalisation on the DSE improved to Tk 2,255.20 billion against Tk 2,219.03 billion of the previous session. Sectoral performance was stunning after a long time as most of the sectors gained handsomely. Ceramics sector was the top gainer marking 5.43 per cent gain. Textiles sector remained the top turnover holder with Tk 403.9 million worth turnover which was 56.8 per cent higher than that of the last day. It gained 3.72 per cent after mild correction from previous few days. Travel and leisure and engineering also gained around 4.5 per cent. Among the major sectors ended in green zone with NBFIs gained 4.35 per cent advancing the most. It is followed by pharmaceuticals and fuel and power gained 2.03 per cent and 2.01 per cent respectively. Banks and telecommunications also closed 1.28 per cent and 1.11 per cent higher. United Airways was the most traded stock of the day with shares worth Tk 109.24 million changing hands. Active Fine was the day's highest gainer, posting a rise of 9.96 per cent while Shajalal Islami Bank was the day's worst loser, slumping by 14.95 per cent following its price adjustment after record date. The Chittagong Stock Exchange (CSE) also ended higher with the Selective Categories Index gained 165.11 points to close at 7,172.62 points. Gainers beat losers 170 to 16 with 6 issues remaining unchanged on the port city bourse that traded 12.07 million shares and mutual fund units on a value of Tk 320.49 million.