Dhaka stocks extended the rally Monday with its core index crossing the 5,800-mark again as investors continued their buying spree amid growing confidence on the market.
Brokers said the market maintained the upward trend for the third day as investors' positive sentiment fuelling optimism across the market, following the government's steps to mitigate liquidity crisis.
For easing liquidity shortage, the government took a number of decisions, including allowing state-owned enterprises to deposit 50 per cent of their funds, up from 25 per cent, with private banks and slash the cash reserve requirement by 1.0 per cent point to 5.5 per cent.
"Investors may perceive that the market will continue with the bull-run over a shorter time period as there may be heavy flow of funds following the government's move to ease ongoing liquidity crisis," said an analyst at a leading brokerage firm, preferring anonymity.
Following the previous day's three years' biggest gain, the index showed some volatility due to profit taking by the investors in the initial hour. But rest of the session, the index went up sharply and finally ended 80 points higher.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), crossed the 5,800-mark after 16 sessions and ended at 5,827 points, gaining 80.37 points or 1.39 per cent.
DSEX recovered nearly 339 points or 6.20 per cent in the last three consecutive sessions.
According to International Leasing Securities, the market witnessed yet another sparkling session amid growing confidence among the investors.
The stockbroker noted that despite some volatility was seen in the first hour of the trading, investors showed their buying appetite in large-cap stocks as the session progressed.
"Buyers' attention was attracted mostly by the stocks of financial institutions, engineering, bank, textile, telecom and fuel & power sectors," the stockbroker said.
Trading activities increased by 36 per cent over the last session as the investors took fresh position on sector-specific stocks, it said.
The two other indices also ended higher. The DS30 index, comprising blue chips, went up by 26.71 points or 1.24 per cent to close at 2,176 points. The DSE Shariah Index (DSES) rose 15.49 points or 1.15 per cent to close at 1,355 points.
Bullish sentiment also reflected on the trading activities as the total turnover on the DSE touching to Tk 6.0 billion, which was 36 per cent higher than the previous day's Tk 4.41 billion.
Banking, pharmaceuticals and engineering continued to dominate the trading, jointly accounting for almost 45 per cent of the total DSE turnover.
"Upbeat trend continued with the vibe of regaining the confidence among investors riding on central bank's decision on slashing cash reserve requirement (CRR) and increase of deposit ceiling for the government agencies in private commercial banks," commented EBL Securities in its regular market analysis.
Investors spurred their buoyancy in stocks mainly from banking, financial institutions and telecommunication sectors throughout the session, pushing the market turnover up to Tk 5.99 billion.
All most the major sectors showed upbeat movement with non-bank financial institutions and banking sectors posting the highest gain of 4.9 per cent and 2.0 per cent respectively.
Engineering, telecommunication, power and pharmaceuticals also gained 1.80 per cent, 1.5 per cent, 1.20 per cent and 0.50 per cent respectively.
Gainers outpaced losers as out of 339 issues traded, 234 advanced, 71 declined and 34 issues remained unchanged on the DSE floor.
Beximco dominated the turnover chart with 9.86 million shares worth Tk 263 million changing hands, followed by LankaBangla Finance, Unique Hotel, Mercantile Bank and BDCOM Online.
Shasha Denims was the day's best performer, posting a gain of 9.96 per cent while Khulna Printing & Packaging was the worst loser, losing 4.83 per cent.
Port city bourse CSE also stayed afloat with the CSE All Share Price Index - CASPI - advancing 276 points to settle at 17,980 points and Selective Categories Index - CSCX - gaining 170 points to finish at 10,868 points.
Here too, the gainers beat the losers as 187 issues closed higher, 38 ended lower and 15 remained unchanged.
The port city bourse traded 26.14 million shares and mutual fund units worth nearly Tk 861 million in turnover.
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