The benchmark index of Dhaka Stock Exchange (DSE) witnessed a sharp rise on Sunday, with turnover crossing Tk 13 billion mark once again, buoyed by the regulatory moves and resumption of economic activities.
DSEX, the prime index of the premier bourse, jumped 82.76 points or 1.65 per cent to settle at 5,094, touching a more than one-year high. It was the highest level of the index since August 29, 2019, when the DSEX was 5,095.
The top contributors to the index's gain were the United Power, Grameenphone, Islami Bank, ICB and British American Tobacco Bangladesh, according to the data of amarstock.com, a stock market data analyst.
These five companies added a combined 43 points to the DSEX, with the United Power contributing the most (19 points).
Turnover, a crucial indicator of the market, also surpassed Tk 13 billion mark after a gap of four weeks since August 17. The day's total turnover reached Tk 13.29 billion, registering a 30 per cent increase from the previous day.
Market operators said spontaneous participation backed by high expectations lured the investors to take position on large-cap stocks.
Factors like lower returns on the money market, strong regulatory actions against wrongdoers, expansionary monetary policy and resumption of economic activities prompted sideline investors to put fresh funds on stocks, they said.
The market has been rising mainly due to the growing confidence in the new leadership of the Bangladesh Securities and Exchange Commission (BSCC) that has taken several initiatives to develop the market and punish the wrongdoers, said a merchant banker.
The stock market regulator continued with its tough stance on gamblers, set a number of conditions for junk stocks and slapped big fines on several companies as part of the crackdown on the wrongdoers.
The new commission has also taken some steps against errant directors of listed companies and cancelled some questionable IPO proposals.
Following such regulatory moves, the investors continued to show their buying appetite, especially for large-cap stocks, said the merchant banker.
The recent market rally has been largely supported by high market liquidity and fundamental stocks like banking, power, non-bank financial institutions and telecoms sector stocks, commented the UCB Capital Management.
On Sunday, the banking sector posted the highest gain of 4.0 per cent, followed by power sector (3.80 per cent), financial institutions (2.80 per cent) and telecoms (1.40 per cent).
Two sub-indices also ended higher. The DS30 index, comprising blue chips, soared 16.65 points to finish at 1,756 and the DSE Shariah Index rose 12.13 points to close at 1,170.
Gainers outnumbered the losers, as out of 357 issues traded, 226 closed higher, 106 ended lower while 25 issues remained unchanged on the DSE trading floor.
A total of 254,813 trades were executed in the day's trading session with a trading volume of 531.05 million shares and mutual fund units.
The market-cap on the premier bourse also jumped 1.50 per cent to Tk 3,846 billion from Tk 3,789 billion in the previous session.
The pharmaceuticals sector continued to dominate the turnover chart. Beximco Pharma topped the turnover chart with shares worth Tk 590 million changing hands, followed by Beximco, IFIC Bank, Brac Bank and Orion Pharma.
The City Bank was the best performer, posting a gain of 10 per cent while Hakkani Pulp & Paper was the worst loser, shedding 5.99 per cent.
The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI) -- soaring 239 points to close at 14,534 and the Selective Categories Index -- CSCX -- rising 133 points to close at 8,736.
Of the issues traded, 177 gained, 85 declined and 25 remained unchanged on the CSE.
The port city bourse traded 24.62 million shares and mutual fund units with a turnover value of Tk 480 million.
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