FE Report
Stocks witnessed sharp gain on Sunday, the maiden trading session of the year 2017, as investors continued their buying spree on large-cap stocks amid hopes and excitement.
Analysts said the market's upbeat trend sustained for the sixth day in a row having optimistic support of large-cap stocks amid growing confidence of investors, taking the prime index of the premier bourse to a fresh 26 months' high.
"The news of increased operating profit of listed banks in 2016 also encouraged the investors to take position in stocks," said an analyst at a leading brokerage firm.
Political stability has helped banks earn handsome operating profits in 2016 despite a sharp fall in lending rates, data collected from different banks showed.
Accordingly, the heavyweight banking sector posted a 25.7 per cent return in 2016.
The market started with a flying note in the morning and the buoyant note persistent till the end of the session with no sign of reversal, ultimately ended more than 47 points higher.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), jumped 47.84 points or 0.95 per cent to settle at fresh 26 months high at 5,083.89, which was the highest level of DSEX since November 2, 2014, when DSEX was 5,105.22.
"The next major resistance level lies at 5,200-mark," said LankaBangla Securities, a stockbroker, in its regular market analysis.
The two other indices also ended higher. The DS30, comprising blue chips, rose 10.97 points or 0.61 per cent to close at 1,821.88. The DSE Shariah Index (DSES) jumped 8.66 points or 0.73 per cent to close at 1,200.53.
Turnover, the important indicator of the market, stood at Tk 9.94 billion, which was 7.10 per cent lower than the previous day's turnover of Tk 10.71 billion.
Overall activities remained confined on engineering, textile and banking sectors, where they captured 22 per cent, 17 per cent and 12 per cent respectively of the day's total turnover value.
"The market entered into 2017 roaring with broad index DSEX surged by 47.8 points to close at 5,083.9 points," said IDLC Investments, a merchant bank, in an analysis.
The merchant bank noted that high tide in the market lifted 243 issues on the positive side, whereas only 60 issues declined.
EBL Securities, a stockbroker, said, "Capital market started the year with a shining session and ended in positive note".
The stockbroker noted that the market opened with buying spree and optimistic confidence among investors kept the upbeat tune persistent throughout the session.
"The market turnover kept above Tk 9.90 billion with the reflection of optimistic confidence among investors about better performance of market in the forthcoming period," said the stockbroker.
The non-bank financial institutions posted the highest gain of 3.78 per cent, the most attractive return among the major sectors, followed by engineering 2.62 per cent and textile 2.03 per cent.
Telecommunication and cement witnessed 0.41 per cent and 0.15 per cent correction respectively.
The gainers took a strong lead over the losers as out of 326 issues traded, 243 closed higher, 60 closed lower and 23 remained unchanged on the DSE trading floor.
IFAD Autos dominated the DSE turnover chart for the third day in row with about 2.92 million shares worth Tk 306 million changing hands, closely followed by National Bank, Ratanpur Steels Re-rolling Mills, Bangladesh Building Systems and Singer Bangladesh.
Phoenix Finance First Mutual Fund was the day's highest gainer, posting a 10 per cent rise, while Zeal Bangla Sugar Mills was the worst loser, losing 7.84 per cent.
The port city bourse, the Chittagong Stock Exchange (CSE), also closed higher with its Selective Categories Index - CSCX - gaining 88.60 points to settle at 9,457.98.
Gainers beat losers as 206 issues closed higher, 45 closed lower and 9 remained unchanged on the CSE.
The port city bourse traded 26.49 million shares and mutual fund units worth over Tk 621 million in turnover.
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