Stocks rose sharply on Thursday with the benchmark index DSEX hitting 15-week high, spurred by the continuous rally over the weeks.
The steep gain was largely attributable to the heavy weight banking sector that advanced 3.5% and continued the gaining streak for the fourth consecutive session.
The DSEX index gained 89 points or 2% to close at 4,200, highest since July 18 this year. The benchmark index extended its gaining streak for the sixth consecutive session.
However, the blue chip index DS30 rose 18 points or 1.3% to 1,453. The Chittagong Stock Exchange Selective Categories Index, CSCX, rose 180 points to 8,187.
The strong buying spree has led the total turnover at DSE to reach to one month high and stood at Tk4.7bn, which was 21.5% higher over the previous session. The banking sector contributed the highest almost 24% to the total turnover.
Prices of more than 76% issues closed positive, as out of 289 issues traded, 221 advanced, 52 declined and 16 remained unchanged.
The market appeared to be growing at two speeds – sector specific manufacturing stock was generating return and banking sector showed better than expected quarterly earnings in July-September period, said Lanka Bangla Securities.
The rebound in banking sector supports the market to make a smart move throughout the week. It was worth pointing out that even during the uncertainty around the political arena with three days of strike, market have gained approximately 233 points this week, it said.
Among the major sectors, heavyweight banks saw a surge of 3.4% and financial institutions 2.9% in their respective market capitalisations, while Cement, Jute and Tannery sector has beaten down by 0.3%, 0.4% and 0.4% respectively.
IDLC Investment said continuous gain in indices as well as healthy level of activities solidified investors’ confidence and drove DSEX over psychological level of 4,200 points, for the first time in last three and a half months.
All other major sectors ended positive with life insurance rising 5.8%, non life insurance 3.6%, non-banking financial institutions and pharmaceuticals 2.8% each.
Grameenphone was the most traded stock of the session with a turnover of Tk226.8m, followed by United Commercial Bank, Square Pharmaceuticals, IFIC Bank, First Lease International, Generation Next and City Bank.
