Stocks extended their rally for the sixth session in a row in a volatile trade yesterday.
Despite a shaky beginning, upbeat tone spurred by the institutional buying hit right from the mid-session, helping the market close positive.
The benchmark DSEX index closed at 4,084 with a rise of 50 points or 1.2%. The blue chip index DS30 gained 15 points or 1% to 1,554.
The Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, saw fractional gain of 76 points to 8,018.
Trading of heavy weight scrips put the turnover 20-session high of Tk4.8bn, an increase of 5.8% over the previous session’s value.
Apparent improvement in turnover of last few sessions assisted in improving investors’ confidence as they were relying on temporary respite in political frontier, said IDLC Investment in its daily market analysis.
Scrip-wise swings continued from the very beginning as 17% of the traded scrips posted more than 4% gain.
Out of 289 issues traded, 186 gained, 79 declined and 24 remained unchanged.
Lanka Bangla Securities said: “We were observing an increasing trend of turnover, indicating improved participation by investors. Turnover was higher than average turnover of last twenty trading days.”
It said investors are recovering from some of their position, which they offloaded in the selling frenzy before Eid-ul-Fitr. “This is apparent from the quick price recovery of most of the stocks that were driving the rally, which started in May, 2013. But market direction is still not clear,” it said.
Now, whether the market resumes the bull trend or this is just a temporary bounce back from the down trend which started from the peak of the recent rally is a matter to be seen in next few trading days, it added.
All the major sectors posted gains with telecommunications rose highest 3%. Banks followed it with 1.87% gains driven by Prime Bank that gained more than 9%. Pharmaceuticals 1.18%, power 0.59% and financial institution 0.41%.
Padma Oil was the most traded stock with shares worth Tk287m changing hands.
It was followed by Bangladesh Submarine Cable Company Ltd, Meghna Petroleum, Olympic Industries, Grameenphone, Active Fine Chemicals and Square Pharmaceuticals.
Midas Financing was the biggest loser with drop of 13% today following its corporate declaration of no dividends.
After going down by more than 14% in the previous session, newly listed Central Pharmaceuticals Ltd. topped the gainers’ chart on the day with a rise of 12.4%.
