DSEX surpasses 6,500 mark as investors in buying mode

The benchmark index of the Dhaka Stock Exchange (DSE) crossed the 'psychological' threshold of 6,500 mark on Thursday after nearly four months as buoyant investors continued their buying spree on stocks amid high expectations.
The market opened higher and the upbeat trend sustained until the end of the session. The benchmark DSEX index, finally, settled 51.39 points or 0.79 per higher at 6,508, the highest in nearly four months since May 12 this year.
The DSEX added about 228 points in the past six consecutive days while the market-cap surged by Tk 126 billion during the period under review to Tk 5,219 billion.
Turnover, a crucial indicator of the market, remained high and amounted to Tk 18.89 billion on the prime bourse, which was 5.78 per cent lower than the previous day's mark of Tk 20.05 billion.
Market operators said the prime index surpassed the 6,500-point level again as investors put fresh funds on major sector stocks ahead of the dividend season.
The institutional investors and general investors were putting fresh funds, particularly in June-end stocks, said a merchant banker.
He noted that some recovery signs on the macroeconomic front instilled confidence among the investors that led them to inject fresh funds into equities.
"The stability in the foreign exchange market, rising private sector credit growth, fuel price cut coupled with the floor price restriction, kept the market investors afloat," he said.
Stocks extended their rally as the investors sustained their buying appetite amid upcoming dividends expectations, said International Leasing Securities.
Active presence of the bargain hunters in June-ending stocks helped the benchmark index to cross 6,500-mark, said the stockbroker.
"The market has been experiencing bullish momentum due to some positive recovery signs on the macroeconomic front, particularly foreign exchange market stability, declining imports, and easing of power supply," said EBL Securities.
All major sectors posted gains. Power sector posted the highest gain of 0.97 per cent, followed by pharma with 0.91 per cent, non-bank financial institutions 0.70 per cent, telecom 0.48 per cent, banking 0.35 per cent, food 0.34 per cent and engineering 0.31 per cent.
Two other indices also ended higher. The DS30 index, comprising blue chips, jumped 22.60 points to finish at 2,305 and the DSE Shariah index rose 10.52 points to close at 1,409.
The pharmaceuticals sector dominated the turnover chart, capturing 15 per cent of the day's total turnover, followed by textile (14 per cent) and miscellaneous (13 per cent).
Gainers took a modest lead over the losers as out of 381 issues traded, 172 advanced, 131 declined and 78 issues remained unchanged on the DSE trading floor.
Beximco became the most-traded stock with shares worth Tk 1.24 billion changing hands, followed by Eastern Housing (Tk 558 million), Orion Infusion (Tk 549 million), Orion Pharma (Tk 544 million) and National Polymer (Tk 537 million).
JMI Hospital Requisite Manufacturing was the day's highest gainer, posting a 10 per cent rise while Beach Hatchery was the day's worst loser, losing 4.78 per cent.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index (CASPI) gaining 150 points to settle at 19,156 and its Selective Categories Index (CSCX) rising 91 points to close at 11,480.
Of the issues traded, 150 advanced, 106 declined and 55 issues remained unchanged.
The port-city bourse traded 21.19 million shares and mutual fund units with turnover value of Tk 656 million.

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