Stocks extended their gaining streak for the fourth sessions in a row Sunday, with benchmark index of the prime bourse soared 3.75 per cent, the biggest single-day spike since its inception in January, 2013.
Brokers said the buying spree was spurred mainly by indication of interest rate cut on savings instruments coupled with budgetary expectations and lucrative pricing level in recent times.
The market started with a flying note and remained vibrant throughout the session amid strong buying pressure from the investors, including global fund managers.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), crossed the 4,200-mark once again and ended at 4,277.05 points, gaining 154.72 points or 3.75 per cent.
It was the biggest single-day gain of DSEX since its inception on January 27, 2013, so far. The DSE Broad Index (DSEX) was introduced on the premier bourse on January 27, 2013 with a base of 4,055.09 points, replacing the DSE General Index (DGEN).
The two other indices also ended higher. The DS30 index, comprising blue chips, went up by 58.97 points or 3.78 per cent to close at 1,617.17 points. The DSE Shariah Index (DSES) rose 31.08 points or 3.07 per cent to close at 1,041.49 points.
IDLC Investments, a merchant bank, said, "Continuing gaining streak, indication of lower interest rate in savings certificates coupled with natural budgetary expectations created a scope for the market to rebound".
"Investors jumped in vigorously to take advantage of the scope, putting immense buy pressure on almost all stocks, which pulled up 289 issues in positive zone, while 77 of them advanced 9.0 per cent or more from previous session's close price," said the merchant bank.
Powered by such violent upsurge across the bourse, broad index DSEX posted the biggest gain in its history of 154.7 points, soaring by 3.75 per cent, outperforming all regional peers for this session, said the merchant bank.
LankaBangla Securities, a stock broker, said, "The market has opened on strong note adding to the substantial gain posted in the previous sessions. As trading session proceed, index staged a strong rally with benchmark index hitting the day's close 154.73 points up".
"The investors might have reacted positively and institutional investors have started to exhibit their active participation in response to various steps taken by the regulatory authority," said International Leasing Securities.
"Recent improvements in market situation seem to heighten investors' confidence and they are more active in taking positions," said Mohammad A Hafiz, former President of Bangladesh Merchant Bankers Association (BMBA).
The apparent persistence of positive sessions has been pulling previously inactive investors, thus improving overall activity, said Mr Hafiz, also a director of AAA Consultants and Financial Advisers, an issue management company.
Turnover, the most important indicator of the market, also crossed Tk 5.0 billion-mark on the prime bourse and amounted to Tk 5.20 billion, which was 24 per cent higher than the previous session's Tk 4.19 billion.
The investors' attention was mostly focused on power, pharma and engineering - the sectors that accounted for 25 per cent, 17 per cent and 14 per cent respectively of the day's total turnover.
All the large-cap sectors closed higher. The financial sectors performed well with NBFIs and banks gaining by 6.54 per cent and 3.37 per cent respectively. Power registered a gain of 4.93 per cent in the session.
Cement also appreciated by 4.03 per cent. Telecommunication and pharmaceutical went up by 1.56 per cent and 1.42 per cent respectively. Food and allied also went up by 0.26 per cent.
Gainers outpaced losers as out of 309 issues traded, 289 advanced, 17 declined and three remained unchanged on the DSE floor.
United Power continued to dominate the top turnover chart with shares worth Tk 509.61 million changing hands followed by ACI Formulations, MJL BD, Saif Powertec and IFAD Autos.
Islami Insurance was the best performer of the day, gaining 18.98 per cent while ICB Third Mutual Fund was the worst loser, plunging by 5.70 per cent.
The port city bourse Chittagong Stock Exchange (CSE) also ended higher with its Selective Categories Index - CSCX - rose 293.54 points to close at 8,010.88 points.
Gainers beat losers 236 to 7, with 3 issues remaining unchanged at the port city bourse that traded about 13 million shares and mutual fund units, and recorded a turnover of Tk 432 million.
babulfexpress@gmail.com
