Stocks rally for fifth day

Stocks extended the gaining streak for the fifth straight session Monday with turnover rose slightly despite the countrywide shutdown enforced by Bangladesh Nationalist Party (BNP).

DSEX, the prime index of the Dhaka Stock Exchange (DSE) went up by 11.28 points or 0.22 per cent to close at 4,924.52 points, peaking highest level since its inception on January 28, 2013. In the last five consecutive sessions, DSEX accumulated 214.6 points gain.

However, profit booking on large cap pricy stocks dragged down two other indices. The DS30, comprising blue chips declined 11.43 points or 0.60 per cent to close at 1,889.25 points. The DSE Shariah Index lost 4.42 points or 0.38 per cent to close at 1,149.59 points.

The participation remained vibrant and total turnover on DSE amounted to Tk 9.92 billion, registering an increase of 1.15 per cent over the previous session value of Tk 9.81 billion.

The investors' attention was mostly focused on engineering, pharmaceuticals and power - the sectors that accounted for 21 per cent, 15 per cent and 11 per cent respectively of the day's total turnover.

"Despite the nation-wide strike for the consecutive three working days, equity market continued to advance amid heightened turnover," commented IDLC Investments, in its regular market analysis.

Investors remained active and turnover crossed 9.5 billion for the four consecutive trading sessions, said the merchant bank.

Out of 303 traded stocks 54 posted more than 3.0 per cent return whereas 26 scrips lost more than 3.0 per cent over the previous day.

"Investors continued favouring pharmaceuticals which captured the highest trading value, followed by engineering and fuel and power," the merchant bank added.

"The day's trading can be seen as a day of consolidation as stocks fluctuated throughout the day before eventually ending the session mixed," said LankaBangla Securities.

"Investors presented mixed trading behaviour taking profit on stocks, those rallied earlier in previous sessions while taking position on financial and manufacturing stocks," said the stock broker.

On the both end of trading market showed high liquidity keeping the turnover value 1.12 per cent up and supporting the index closing above the 4,900 mark, said the stock broker.

"Market reversed its course of direction in early trade hour Monday, but recovers quickly with huge turnover volume,' said Zenith Investments.  

Much of the credit goes to the banks and financial institutions that fuelled the growth of the main index and made the market more attractable for the investors, said the Zenith analysis.

"Most of the investors anticipated the market to face correction for a day or two, but the forces of bulls were so strong that the stocks refused to remain flat," the Zenith analysis added.

Among the major sectors, only food and allied sector posted negative return with 2.43 per cent loss. The two largest cap sectors - telecommunication and banks - appreciated the most advancing 2.02 per cent and 2.32 per cent respectively.

Fuel and power gained 0.34 per cent. Pharmaceuticals and NBFIs inched up by 0.11 per cent and 0.13 per cent respectively.

The gainers took a modest lead over the losers as out of 303 issues traded, 141 advanced, 135 declined, 27 remained unchanged on the DSE floor.

Activities increased in the major bourse (DSE) where trade and volume were up by 21.86 per cent and 1.31 per cent respectively. A total of 0.220 million trades were executed with 228.86 million securities of trading volume.

The total market capitalisation of the DSE stood at Tk 3,307.72 billion against Tk 3,298.68 billion in the previous session.

The new issue - RSRM Steels was the day's most traded stocks with shares worth Tk 754.13 million changing hands followed GP, Beximco, MJL BD, and Beximco Pharma.

The RSRM Steels was also the day's highest gainer, posting a rise of 93.25 per cent while Safko Spinning Mills was the day's worst loser, slumping by 7.86 per cent.

The port city bourse, Chittagong Stock Exchange (CSE) also closed higher with its Selective Categories Index - CSCX - gained 62.00 points to close at 9,279.89 points.

Gainers beat losers 117 to 102, with 18 issues remaining unchanged at the port city bourse that traded 19.12 million shares and mutual fund units, turnover value of Tk 771.11 million.

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