Stocks continued to move higher on Sunday, with the core index of Dhaka Stock Exchange (DSE) surpassing the 5,800-level after a gap of four months amid growing investor confidence.
Returning after a three-day Eid-ul-Fitr closure, investors shrugged off Covid-19 worries and retained their appetite for banking and financial institutions stocks, buoyed by better-than-expected earnings declarations, according to market operators.
DSEX, the prime index of the DSE, jumped 62.66 points or 1.08 per cent to settle at 5,813, the highest since January 24. The DSEX added 301 points in the past seven consecutive sessions.
Stocks have been in a rising trend for the last few weeks, a sign that the investors are increasingly optimistic about the market amid easing coronavirus worries coupled with regulatory initiatives, said a merchant banker.
The market rally came on the back of regulatory moves, positive macroeconomic indicators like remittance, foreign reserve, export growth and better-than-expected earnings declarations, he said.
He noted that lower return from the money market, easing virus worries and extension of margin loan cap implementation time for another six months continued to encourage investors to put fresh funds on stocks.
Two sub-indices of the DSE also ended higher -- the DSE 30 Index, comprising blue chips, advanced 5.78 points to finish at 2,192 while the DSE Shariah Index (DSES) rose 7.64 points to close at 1,282.
Turnover, a crucial indicator of the market, clocked in at Tk 14.18 billion on the country's premier bourse, 2.41 per cent down from the previous day's turnover of Tk 14.53 billion.
The textile sector caught the investors' eyes after a long time, as the sector accounted for 14.20 per cent of total transactions on the DSE, followed by general insurance (14.06 per cent) and banking (10.38 per cent).
The stock market has been on the rise for the last few trading days due to considerable investors' participation as confidence in the market remained high riding on regulatory moves, commented EBL Securities.
The large-cap sectors like banking and non-bank financial institutions positively impacted the market to close higher, said the stockbroker.
Among the major sectors, textile sector generated the highest return, gaining 3.50 per cent, closely followed by financial institutions (3.40 per cent), banking (2.10 per cent), power (1.0 per cent) and pharmaceuticals (0.80 per cent).
On the other hands, miscellaneous, cement, telecommunications and general insurance sectors lost 1.10 per cent, 1.0 per cent, 0.50 per cent and 0.20 per cent respectively.
Gainers took a strong lead over the losers, as out of 368 issues traded, 231 advanced, 88 declined and 49 issues remained unchanged on the DSE trading floor.
Beximco -- the flagship company of Beximco Group -- continued to dominate the turnover chart with shares worth about Tk 831 million changing hands, followed by Saif Powertec (Tk 422 million), Robi (Tk 318 million), Summit Power (Tk 312 million) and National Feed Mills (Tk 307 million).
A total of 256,238 trades were executed in the day's trading session with a trading volume of 576.06 million shares and mutual fund units.
The market-cap of DSE also rose to Tk 4,930 billion on Sunday, up from Tk 4,899 billion in the previous session.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index - CASPI - soaring 191 points to settle at 16,849 and the Selective Categories Index - CSCX -- rising 112 points to close at 10,156.
Of the issues traded, 192 advanced, 68 declined and 32 remained unchanged on the CSE.
The port city's bourse traded 37.52 million shares and mutual fund units with turnover value of Tk 711 million.
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