Stocks saw modest rally yesterday amid improved trading activities, as investors took positions on some issues, particularly large ones, just ahead of earning declarations.
The market opened on higher note and the momentum continued till close of the trade.
The benchmark DSEX gained 21 points or 0.5% to end at 4,395. The Shariah index inched 7 points or 0.8% up to 992. The comprising blue chips DS30 closed at 1,605, rising 14 points or 1%.
Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, rose 53 points to 8,345.
Turnover at DSE crossed Tk300 crore mark after three weeks. Total turnover has increased by more than 17% to Tk310 crore over the pervious session’s value.
All the large cap sectors closed positive except banks that dropped marginally on profit booking.
Telecommunications advanced by 3.4%, mainly driven by Grameenphone that gained 3.6%.
Following telcos, pharmaceuticals, non-banking financial institutions, power and food also moved up.
IDLC Investments said strong demand for large caps, triggered by earnings expectations kept market sentiment upbeat.
With the reaction to disclosed earnings and remaining earnings expectations, investors re-balanced their portfolio with injection of some fresh funds, too, it said.
“Earnings improvements in some specific sectors prompted the return of some investors on trading floor. Consequently, total turnover increased.”
Lanka Bangla Securities said market has reverted with turnover value implying growing confidence among the investors as series of selling pressure has calm down following the flow of better than expected quarterly declaration of stocks, especially financial stocks.
On the economic data, remittance has started picking up with forex reserve of historic high of $21.24b on July 15 and portfolio investment shot up around 302% owing to the depressed share prices which translates into increased activity on the trading floor, it said.
Beximco continued to lead the chart for the fifth consecutive session with Tk42 crore changing hands, followed by Shahjibazar Power Company, Square Pharmaceuticals, Olympic Industries, Bangladesh Shipping corporation and Grameenphone.