The market witnessed yet another bullish session on Sunday while turnover rose to Tk 8.95 billion on the prime bourse, as institutional investors injected fresh funds into major sector stocks.
The market opened higher and the key index rose about 58 points after two hours of trading. But late-hour sale pressure wiped out most of the early gains, eventually ending over 20 points high.
DSEX, the prime index of Dhaka Stock Exchange, went up by 20.87 points or 0.31 per cent to settle at 6,683. The core index added 201 points in the past four consecutive sessions.
The total turnover amounted to Tk 8.95 billion on the country's premier bourse, climbing further by 19 per cent over previous day's mark of Tk 7.54 billion.
Market insiders said a number of initiatives of BSEC to increase fund flow in the capital market helped increase the institutional participation.
The securities regulator raised the lower limit circuit breakers to 5.0 per cent, from 2.0 per cent, giving investors a breather to engage in fresh investment, which also helped increase market turnover, said a merchant banker.
"Active participation of both institutional and retail investors helped the market to come out of prolonged bearishness," said EBL Securities, in its regular market analysis.
The stock market regulator recently allowed the Investment Corporation of Bangladesh (ICB) an exemption regarding its investment ceiling in a single company so that it can invest more in blue-chip stocks.
Now, the ICB had the approval to hold up to 10 per cent shares of any listed firm without prior approval of the regulator. Earlier, the limit was 5.0 per cent.
The ICB has ploughed Tk 1.5 billion into the stock market from the Capital Market Stabilisation Fund (CMSF), officials say.
Besides, Bangladesh Securities and Exchange Commission urged the state-owned four banks, brokers, dealers, merchant bankers and asset management companies to take initiatives to make fresh investments through their own portfolios.
The general investors think the participation of institutional investors may rise in the market further as some have already started to make fresh investments into fundamentally sound stocks, said a leading broker.
The institutional fund flows to the market created a bullish vibe among the investors that caused the increase of investors' participation significantly, said International Leasing Securities.
The DSE30 Index, comprising blue chips, also advanced 8.05 points to finish at 2,486. However, the DSE Shariah Index (DSES) dropped 3.08 points to close at 1,461.
Major sectors posted gains with financial institutions saw the highest gain of 1.30 per cent, followed by food with 1.0 per cent, banking 0.60 per cent, telecom 0.40 per cent, power 0.30 per cent.
Cement and pharma sectors lost 0.4 per cent and 0.2 per cent respectively.
Of the 380 issues traded, 200 advanced, 142 declined and 39 issues remained unchanged on the DSE trading floor.
Beximco topped the turnover list with shares of nearly Tk 627 million changing hands, followed by IPDC Finance (Tk 589 million), Orion Pharma (Tk 536 million), Bangladesh Shipping Corporation (Tk 294 million), and Fortune Shoes (Tk 291 million).
Meanwhile, the stock price of newly listed JMI Hospital Requisite Manufacturing fell 4.97 per cent to close at Tk 70.80 on Sunday, after rising 'abnormally' by 272 per cent or Tk 54.50 each in three weeks since its debut on March 31.
The Chittagong Stock Exchange (CSE) also kept rising with the CSE All Share Price Index - CASPI -gaining 52 points to settle at 19,645 and the Selective Categories Index - CSCX -rose 32 points to close at 11,789.
Of the issues traded, 151 advanced, 108 declined and 30 issues remained unchanged on the CSE.
The port-city bourse traded 14.63 million shares and mutual fund units with turnover value worth Tk 404 million.
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