Stocks return to green territory

Stocks returned to the green territory Wednesday after facing correction in the last two sessions as investors took position on large cap stocks.
The market started with an upward trend and remained positive throughout the session amid modest fluctuations. DSEX, the prime index of the Dhaka Stock Exchange (DSE) ended at 5,315.11 points, gaining 22.50 points or 0.42 per cent.
The two others indices also closed in the green. The DS30, comprising blue chips, advanced 8.80 points or 0.44 per cent to close at a new peak at 2,002.08 points. The DSE Shariah Index rose 8.66 points or 0.69 per cent to close at 1,248.77 points.
The total turnover on DSE, however, dropped to Tk 9.75 billion, registering a decline of 11.12 per cent over the previous session's value of Tk 10.97 billion.
The investors' attention was mostly concentrated on fuel and power, pharma and engineering - the sectors that accounted for 20 per cent, 15 per cent and 10 per cent respectively of the day's total turnover.
"The market rebounded to bullish outlook after dismal display in the past couple of sessions," said International Leasing Securities.
Large cap stocks from major sectors rallied throughout the day ahead of their quarterly earnings declarations and led the upward surge of entire market, said the International Leasing.
IDLC Investments said: "Having optimistic support of large cap stocks, the market reversed last two sessions' correction mood".
The investors started re-balancing portfolio ahead of upcoming Q3 earnings disclosures, said the merchant bank.
Better earnings in some mutual funds impulse investors to take position and assisted most of the mutual funds to close in green zone, with six of them attaining positions in top ten gainers' list, the merchant bank added.
LankaBangla Securities said: "Market rebounded on cue of positive economic indicators".
"Monthly inflation news seems to be decisive for the market as investors embraced the falling inflation rate on back of good rice production and low interest and exchange rates account for the slide," said the stock broker.
Point-to-point inflation came down to a 20-month low of 6.84 per cent in September.
Zenith Investments said: "It was surprising to see the market reviving so quickly and refusing to go down after facing correction for the last two days, indicates that investors optimism is genuine and strong".
Banks have contributed significantly to lead the market along with food and allied sector. The mutual funds have also saved the day for the investors, said the Zenith analysis.
Among the large cap sectors NBFIs and fuel and power both posted negative yields losing 0.44 per cent and 0.16 per cent respectively. Telecommunication advanced 1.56 per cent after retracing previous session.
Banks appreciated by 1.13 per cent after facing heavy correction in the last two sessions. Pharmaceuticals and food and allied sectors also witnessed decent gains of 0.96 per cent and 0.87 per cent respectively.
Gainers outpaced losers as out of 303 issues traded, 156 advanced, 125 declined and 22 remained unchanged on the DSE floor.
MJL BD was the day's most traded stocks with shares worth Tk 550.87 million changing hands followed by Square Pharma, Titas Gas, GP and Delta Life Insurance.
United Insurance was the day's highest gainer, posting a rise of 8.44 per cent while FAS Finance was the day's worst losers, losing 7.18 per cent.
A total number of 0.174 million trades were executed in the day's trading session with 222.27 million securities of trading volume. The total market capitalization on DSE stood at Tk 3,477.65 billion against Tk 3,458.05 billion in the previous session.
Meanwhile, one company has qualified as eligible constituent for inclusion in DSEX namely, Peninsula Chittagong Limited, in October 2014 interim IPO additions effective from October 19, 2014.
The port city bourse, Chittagong Stock Exchange (CSE) also closed in positive territory with its Selective Categories Index - CSCX - gained 23.88 points to close at 9,959.72 points.
Losers beat gainers 117 to 106, with 14 issues remaining unchanged at the port city bourse that traded 17.86 million shares and mutual fund units, turnover value of Tk 605.38 million

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