Stocks pick up steam despite shutdown

Stocks ended higher Thursday for the third session in a row with key index of the major bourse crossing the 4,800-point mark, despite the countrywide shutdown enforced by opposition Bangladesh Jamaat-e-Islami.
The market started with a flying note, shrugging-off the countrywide strike and remained vibrant throughout the session amid strong buy and sale pressure.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 67.79 points or 1.41 per cent to reach at 4,866.19 points, which was the highest level of DSEX since its inception in January 2013.
The other two indices also ended higher. The DS30, comprising blue chips, rose 20.01 points or 1.06 per cent to close at 1,899.31 points. The DSE Shariah Index gained 10.63 points or 0.93 per cent to close at 1,147.63 points.
The total turnover on DSE also jumped Tk 12.88 billion, registering an increase of 33.33 per cent over the previous session's value of Tk 9.66 billion. It is the highest turnover in fourteen and a half months.
"With the expectation of reversing last several years' faded tone, market continued moving ahead," commented IDLC Investments, in its regular market analysis.
Leaving behind country-wide strike, the bourse ended green, with investors' stronger participation, said the merchant bank.
Since market positivity sustained for the last two months, confidence condensed amid clienteles, the merchant bank said.
The bulk activity remained concentrated in a few stocks of pharmaceuticals, food and allied, engineering and power sectors capturing total 56.8 per cent of the day's turnover, the merchant bank added.
Sheltech Brokerage said: "It's hardly surprising that with confidence getting restored, investors have bought back into risky asset classes such as the heavyweight banks and non-banking financial institutions stocks, thus lifting the index".
Declining interest rate environment continued to play on the minds of investors, who were quick to shift focus on interest sensitive securities which were relatively weak in the recent rally, said the stock broker.
 "Market blasted its way higher making new records every day, as the volume has crossed Tk. 12.88 billion," said Zenith Investments.
The market shows no signs of going slow, boosting investors' confidence and attracting more funds, said the Zenith Investments.
All the major sectors closed in green. Two of the largest cap sectors - telecommunication and banks - posted gains of 3.07 per cent and 2.47 per cent respectively.
Food and allied and non-banking financial institutions also closed higher 1.63 per cent and 1.28 per cent gain. Pharmaceuticals and fuel and power appreciated by 1.10 per cent and 0.34 per cent respectively.
Gainers outpaced lowers as out of 300 issues traded, 200 advanced, 83 declined, 17 remained unchanged on the DSE floor.
Activities increased in the major bourse (DSE) where trade and volume were up by 17.24 per cent and 30.82 per cent respectively. A total number of 0.196 million trades were executed in day's trading session with 255.58 million securities of trading volume.
The total market capitalisation of the DSE stood at Tk 3,272.19 billion against Tk 3,232.72 billion in the previous session.
MJL BD was the day's most traded stocks with shares worth Tk 563.13 million changing hands followed by BSRM Steels, Beximco Pharma, Active Fine Chemicals and Beximco.
RAK Ceramics was the day's highest gainer, posting a rise of 10 per cent while Midas Financing was the day's worst loser, slumping by 9.09 per cent.
The port city bourse, Chittagong Stock Exchange (CSE) also closed higher with its Selective Categories Index - CSCX - gained 146.39 points to close at 9,080.50 points.
Gainers beat losers 138 to 76, with 19 issues remaining unchanged at the port city bourse that traded 19.41 million shares and mutual fund units, turnover value of Tk 768.17 million.

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