Stocks notched sharp gains on Wednesday, with turnover surpassing Tk 22 billion mark again, as the investors continued their buying spree amif high optimism, buoyed by regulatory measures.
The market opened higher and the key index surged more than 100 points in the mid-session, but the rest of the session wiped out one-fourth of the early gains.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), finally settled 76.46 points or 1.18 per cent higher at 6,547. DSEX added over 116 points in the past two trading days.
Two other indices also ended higher. The DS30 index, comprising blue chips, soared 47.11 points to finish at 2,353 and the DSE Shariah Index (DSES) rose 23.40 points to close at 1,442.
Turnover, a crucial indicator of the market, also jumped to Tk 22.01 billion on the premier bourse, 67 per cent up from the previous day's tally of Tk 13.15 billion.
Market operators said the market remained bullish amidst enthusiastic participation as the investors were more confident to put fresh bets on major sector shares riding on regulatory measures.
On Monday, the Bangladesh Bank, in a letter to the Bangladesh Securities and Exchange Commission (BSEC), said that banks have the capacity to invest more in the market.
The central bank also assured that they will continue policy support to make the capital market vibrant.
General investors expect that banks might increase their participation in the market soon, said a leading broker.
Five large-cap stocks such as Beacon Pharma, Beximco Pharma, LafargeHolcim, Beximco and Orion Pharma jointly contributed a rise of 56 points in the DSEX, according to amarstock.com, a market data analyst.
Positive earnings expectations from the June-closing companies instilled optimism among the investors, said EBL Securities, in regular market analysis.
The majority of the buying appetite was concentrated on selective issues while the others experienced corrections resulting from the profit-booking attempts of a section of investors, the stockbroker said.
The pharmaceuticals sector topped the turnover chart, grabbing 28 per cent of the day's total turnover, followed by miscellaneous (13 per cent) and engineering (11 per cent).
Most of the large-cap sectors witnessed gains. The pharma sector posted the highest gain of 2.80 per cent as the sector heavyweights Orion Pharma, Beacon Pharma and Beximco Pharma surged by 9.95 per cent, 8.73 per cent and 7.80 per cent respectively.
It was followed by cement with 2.70 per cent, followed by banking with 0.60 per cent, power 0.60 per cent, engineering 0.20 per cent and food 0.10 per cent.
Losers, however, took a modest lead over the gainers, as out of 378 issues traded, 155 closed lower, 131 higher and 92 others remained unchanged on the DSE trading floor.
Orion pharma became the most-traded stock with shares worth Tk 2.30 billion changing hands, followed by Beximco (Tk 1.51 billion), LafargeHolcim (Tk 1.08 billion), Nahee Aluminum Composite Panel (Tk 722 million) and JMI Hospital Requisite Manufacturing (Tk 699 million).
Orion Pharma was also the day's top gainer, soaring 9.95 per cent while EBL NRB Mutual Fund was the worst loser, losing 9.59 per cent.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index (CASPI) soaring 207 points to settle at 19,196 and its Selective Categories Index (CSCX) rising 125 points to close at 11,506.
Of the issues traded, 113 advanced, 112 declined and 63 issues remained unchanged.
The port-city bourse traded 9.16 million shares and mutual fund units with a turnover value of Tk 431 million.
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