Stocks registered sharp rise on Wednesday with turnover crossing Tk9bn-mark for the first time in nine months as investors reacted positively to the news of government’s approval of Tk9bn fund to help revive the market.
After witnessing selling pressure with high volatility in the previous session, the market saw buying spree both from retailers and institutional investors on the day.
Active positioning and investment of fresh funds led the benchmark DGEN to cross psychological level of 4400-mark to close at 4,477, highest in seven and half months. It gained more than 90 points or 2% compared to the previous session.
The new benchmark DSEX rose 75 points or 1.78% to 4,259. The blue chip index DS30 was up 34 points or 2% to 1,570.
The Chittagong Stock Exchange (CSE) selective category index gained 107 points to 8,356.
After the continuous modest turnover during last few sessions, news on approval of creating Tk9bn capital market fund further boosted investor’s sentiment, said Lanka Bangla Securities in its daily market analysis.
Resultantly, turnover stood at Tk10.72bn, which was the highest since September 27 last year and more than 26% higher over previous session’s value.
On Tuesday, Finance Minister AMA Muhith approved Tk 9bn fund to revive the capital market. The fund would be created with resources in the revenue budget for the fiscal year 2013-14.
Majority of issue prices closed higher as out of 292 issues traded, 148 advanced, 119 declined and 25 remained unchanged.
Optimism started riding on momentum as stock market favoured news stimulated long waited investors from the very start-up of the session. The market saw break out as the bullish buying pressure overwhelmed any bearish sell-off, according to IDLC Investment.
JMI Syringes and Medical Devices Ltd, which has already been trading at CSE, made its debut trade at DSE on the day. The stock topped the gainers chart with a rise of 9.9%.
In the midst of upbeat movement, fuel and power, life insurance and engineering came to spotlight as all these sectors gained more than 4.33% each.
Financial institutions gained 2.10%, pharmaceuticals 2.19%, banks 1.62% and telecommunications 0.49%.
Among the major sectors, fuel and power has seen highest 70.4% increase in volume with 4.53% increase in capitalisation.
Bangladesh Submarine Cable Company Ltd was the most traded stock of the day with a total turnover of Tk450.9m. It was followed by Meghna Petroleum, DESCO, Titas Gas, Olympic Industries, Unique Hotel and Resorts, United Airways, Jamuna Oil and Summit Purbanchaol Power Company Ltd.