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Stocks keep gaining amid growing confidence

FE Report | January 03, 2019 00:00:00

Stocks rallied for the ninth straight session on Wednesday amid growing investors' confidence as the national election was held almost peacefully on December 30.

Market analysts said the investors took a fresh position expecting better days ahead riding on political stability and more sound business activities.

The market is on the way to stability and investors also took profits from the market, they said.

A leading broker said as the post-election situations were clam, local investors, including global fund managers will be confident of investing in the market.

Another broker said the investors found positive stance after the massive victory of the Awami League (AL)- led grand alliance in the 11th parliamentary elections.

The newly-elected lawmakers are scheduled to take oath today (Thursday). The new cabinet may take oath on Sunday next.

The broker noted that higher operating profit growth by most of the listed banks coupled with securities regulator's positive move on margin rules also prompted investors to take position on stocks.

Continuing the previous eight days' gaining streak, the market started on a positive vibe, but saw some fluctuations in the middle of the session. And last hour's buying spree helped market to close higher.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 31.18 points or 0.57 per cent to settle at 5,496.

DSEX added more than 278 points or 5.34 per cent in the past nine consecutive sessions.

According to International Leasing Securities, the market remained bullish as enthusiastic investors were confident about the market outlook.

The stockbroker noted that trading activities also rose 31 per cent as the investor injected fresh funds into stocks on lucrative price levels.

The two other indices ended higher. The DS30 index, comprising blue chips, advanced 27.41 points to finish at 1,908 and the DSES (Shariah) index soared 12.98 points to settle at 1,245.

The total turnover rose to Tk 6.96 billion, which was 31 per cent higher than the previous day's Tk 5.30 billion.

The top ten companies grabbed 26 per cent of the total turnover where the textile sector stocks captured 20 per cent, followed by engineering with 16 per cent and pharmaceuticals 13 per cent.

A total number of 175,499 trades were executed in the day's trading session with trading volume of 198.37 million shares and mutual fund units.

The market-cap of DSE increased to Tk 3,929 billion which was Tk 3,912 billion in the previous day.

The power sector posted the highest gain of 2.0 per cent, followed by financial institutions with 1.80 per cent and engineering 1.40 per cent and textile 1.40 per cent each.

The port city bourse CSE also ended higher with the CSE All Share Price Index - CASPI - soaring 133 points to settle at 16,864 while the Selective Categories Index - CSCX -rising 79 points to finish at 10,194.

Here too, the gainers beat the losers as 181 issues closed higher, 52 ended higher and 26 remained unchanged.

The port city bourse traded 12.30 million shares and mutual fund units worth Tk 303 million in turnover.

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