Stocks posted modest gain yesterday, with the benchmark DSEX capping its longest winning streak in the recent months.
The rally was led by financials amid speculations for a better than expected earnings coupled with optimism over upcoming monetary policy statement, analysts said.
After an initial volatility, the DSEX rose 25 points or 0.7% to 4,519, which is its highest level ever. The DS30 Index comprising blue chips gained slightly 9 points or 0.7% to 1,592.
The Chittagong Stock Exchange Selective Category Index, CSCX, closed at 8,900 with a rise of 64 points.
The total market turnover was Tk643 crore, which was more than 7% less than that of the previous session.
IDLC Investment said after some hesitation in the initial hours, market regained its momentum with strong activities. “The session marked significant advancement in financial sector. Earnings expectations coupled with optimism over upcoming monetary policy statement created the bullish vibe in the sector.”
Non-banking financial institutions posted impressive gains of over 4% - highest among all the sectors.
Other major sectors saw marginal gains. Banks and power went up by 0.9% and 0.7% respectively. On the other hand, cement sector contracted after previous session’s robust gain, followed by textiles.
The market breadth remained positive as out of 283 issues traded, 178 advanced, 96 declined and 19 remained unchanged.
LankaBangla Securities said fall in trade deficit and interest rate tapering, pacifying in political agitation and anticipation of easing monetary stance for the second half of 2013-14 fiscal played as driving factors in the market throughout the week.
On the last day of trading this week, market extended its winning streak above 4,500-mark riding on market fundamentals, it said. “Though the prolonged political strikes have stopped for the time being, economic activity painted a picture of anemic growth. Interestingly, this does not appear to be bothering investors, who are continuing to bid stocks price higher pumping fresh funds in the market.”
Appollo Ispat Complex topped the turnover chart for the second consecutive session with a turnover of nearly Tk25 crore.
It was followed by Active Fine Chemical, Square Pharmaceuticals, Lanka Bangla Finance, Bengal Windsor and Thermoplastics, United Commercial Bank, Meghna Petroleum and Olympic Industries.