Stocks rebounded yesterday after four consecutive sessions of losses on profit booking.
Buying spree mainly on banking stocks and mutual funds helped the market recover sharply.
The benchmark DSEX index gained over 77 points or 1.7% to end at 4,749. The Shariah-based DSES index was up 20 points or 2% to 994.The blue-chip comprising DS30 index ended at 1,687 with a rise of 31 points or 1.9%.
The Chittagong Stock Exchange Selective Category Index, CSCX, rose 126 points to close at 9,332.
Supported by natural buying pressure, turnover increased almost 10% from previous session to Tk382 crore. Banking sector accounted for the lion’s share of total market turnover with 18.27% contribution.
“Market reclaimed 4,700-mark proudly after a weeklong correction in index. Buyers are clawing back in the market mostly keeping financial and power stocks in buying radar,” said Lanka Bangla Securities in its market analysis.
Mutual funds came to spotlight on the day with rallying more than 2% ahead of annual declaration.
Market bellwether banking issues continued to shine riding on its fall in non-performing loan on relaxed rules. The banking sector rose 1.4%, extending its gaining streak for the second straight session.
All other major sectors turned positive with cement soaring over 3%, food and allied 2.7%, pharmaceuticals 2.3%, fuel and power 1.9%, engineering 1.5% and telecommunications 1.4%.
IDLC Investment said market broke its bearish spell, as optimism resurfaced. “Since, index lost 174 points from last week; investors observed lucrative price advantage. This assisted in creating a natural re-bounce, pushing up DSEX by 78 points.” Lucrative price to NAV ratio in mutual funds knocked investors’ attention during the session. Consequently, seven mutual funds emerged in the top ten gainers list.
Square Pharmaceuticals, the country’s top drug maker, was the most traded stocks with a turnover of Tk20 crore.
It was followed by Bangladesh Submarine Cable Company, Prime Bank, Grameenphone, Southeast Bank, Olympic Industries, Meghna Petroleum and Generation Next.