Stocks extend gaining streak riding on large-cap shares

Stocks witnessed yet another positive session Tuesday, extending the winning streak for the fifth consecutive sessions, as investors showed their buying appetite on selective large-cap issues.
Market insiders said investors were active on sector-wise large-cap stocks, like Grameenphone, United Power, Lafarge Surma Cement, Square Pharmaceuticals and Islami Bank, which helped the market close higher.
"Such moderate gain in market indices was backed by considerable gain in large-cap stocks," said an analyst at a leading brokerage firm.
The largest market-cap listed company Grameenphone's share price surged 1.61 per cent to close at Tk 479.6. United Power, ICB, Islami Bank and Square Pharma also surged 2.18 per cent, 1.83 per cent, 1.40 per cent and 0.80 per cent respectively.
The market started the day on positive note, but in the middle of the session it saw sale pressure. However, last hour's strong buying helped the market end higher.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 25.55 points or 0.41 per cent to settle at 6,280. DSEX added about 95 points in the past five straight sessions.
According to Sheltech Brokerage, index moved upward led by Grameenphone, Investment Corporation of Bangladesh, Square Pharmaceuticals, United Power and Islami Bank.
"The core index remained upward throughout the session as investors kept their buying on fresh stocks in the hope of taking position on the undervalued stocks," commented EBL Securities.
The stockbroker noted that the optimistic drive was mainly initiated by the investors' buying spree on the telecom, fuel & power and non-bank financial institutions.
The two other indices also closed higher. The DS30 index, comprising blue chips, advanced 9.82 points or 0.43 per cent to close at 2,291. The DSE Shariah Index (DSES) also gained 10.97 points or 0.79 per cent to finish at 1,402.
International Leasing Securities, said, "Some investors were taking fresh positions on telecom, financial institution, engineering and textile sectors while some others were liquidating their portfolios from food, bank and life insurance issues."
The stockbroker noted that trading activities increased by 62 per cent riding on the news of extending deadline for provisioning against unrealised losses in portfolios of merchant banks, stock dealers and their clients by one year.
The market turnover also got some boost after experiencing drought in the previous session and the total turnover amounted to Tk 6.06 billion on DSE, which was 62 per cent higher than the previous day's turnover of Tk 3.74 billion.
Block trade contributed more than 13 per cent to the day's total turnover, where stocks like Shahjalal Islami Bank, BATBC, United Power and Marico dominated.
Banking sector kept its dominance over the turnover chart, capturing 27 per cent of the day's total transaction, followed by textile with 15 per cent and engineering 10 per cent.
The gainers took a strong lead over the losers as out of 335 issues traded, 189 closed higher, 100 lower and 46 remained unchanged on the DSE trading floor.
United Power Generation & Distribution Company topped the day's turnover chart with 1.56 million shares of Tk 291 million changing hands, followed by Dragon Sweater, Lafarge Surma Cement, Paramount Textile and Unique Hotel & Resorts.
Chittagong Stock Exchange (CSE) also ended higher with CSE All Shares Price Index-CAPSI-advancing 64 points to finish at 19,423.
The Selective Categories Index of the port city bourse -- CSCX -- also gained 38 points to finish at 11,741.
Gainers beat losers as 139 issues closed higher, 78 closed lower and 23 remained unchanged on the CSE.
The port city bourse traded 10.60 million shares and mutual fund units worth Tk 374 million.

[email protected]