Stocks rallied for the second straight session yesterday with the benchmark index hitting almost seven-week high.
The expectation on easing monetary policy likely to be announced soon by the central bank to boost up economic activity battered by the restive politics has sent the market to positive territory, analysts said.
The benchmark DSEX gained 60 points or 1.4% to settle at 4,391 – highest since November 21 last year. The blue chip comprising index DS30 rose 27 points or 1.8% to 1,543.
The Chittagong Stock Exchange Selective Category Index, CSCX, closed at 8,616 with a rise of 121 points.
“There were a number of people who had a particularly negative outlook on the market amid current political unrest. But, some expected the central bank might take action to help the economy in its monetary policy.
As a result, it created buying pressure in the market,” said a market player.
Participation in trading increased as turnover at the DSE stood at Tk539 crore, which is 18% over the previous session.
“Improved expectations in political frontier seemed to give a push up to the stock prices during the session,” said IDLC Investment.
In the meantime, financial sectors particularly banks seemed to stir ahead of the upcoming monetary policy statement by Bangladesh Bank, reinforced by earnings expectations and lucrative prices, it said.
All the major sectors performed well with financial institutions registering the highest gain of 2.4%, followed by power 2.2% and pharmaceuticals 1.2%.
Lanka Bangla Securities said the market rocketed up in continuation of previous week, mostly buoyant by strong buy pressure throughout the trading session.
“Investors’ sentiment might have become bullish ahead of monetary policy stance expecting populist monetary policy for the first half of current fiscal year.”
Market makers are anticipating monetary easing to boost up economic activity.
Adding to this, institutional investors are pouring fresh fund into stocks contributing to consolidate the market with a positive attitude.
Engineering sector again topped the turnover chart and contributed 17% to the total market turnover.
Gainers took a marginal lead over the losers as out of 292 issues traded, 224 closed higher, 46 lower and 22 remained unchanged.
Lanka Bangla Finance was the most traded stocks, followed by Golden Son, Beximco Ltd, Appollo Ispat, Summit Purbanchal Power Company, Square Pharmaceuticals, Grameenphone and Summit Power.