Stocks rallied for 8th session in a row yesterday – the longest winning streak in the recent months. The buying euphoria mainly on financials has taken the benchmark DSEX and turnover to new heights.
The broader index rose 46 points or 1% to settle at 4,565, which was highest since January 27, 2013 when the index was introduced with a base point of 4,000. The blue chip comprising index DS30 was up by 19 points or 1% to 1,612.
The Chittagong Stock Exchange Selective Category Index, CSCX, closed at 8,970 with a rise of over 82 points.
Bulls continued to run over the market as turnover remained buoyant with the DSE turnover standing at Tk708 crore, which is highest since December 22 last and 10% higher over the previous session.
“As some of the country’s economic data have been pointing to marginal improvements, it seems investors are focused more on the corporate earnings growth,” said Lanka Bangla Securities in its market analysis.
It said rising from strenuous political confrontation, economic activities are presumed to revive on the backdrop of liquidity in the financial market.
All the major sectors performed well especially the power sector that posted more than 3% gain, followed by banks and non-banking financial institutions that rose more than 1.7% and 1% respectively. Engineering, IT and textiles fell on price correction.
IDLC Investment said participants invested heavily in financial stocks with an expectation of a flexible monetary stance from the central bank, in order to stimulate the wounded economy.
On the other hand, in spite of series of government stimulus, investors remained skeptic over textile’s ability to report healthy profit figures, it said.
The market breadth remained positive as out of 294 issues traded, 167 closed higher, 112 lower and 15 remained unchanged.
Power sector dominated trading on the day as it made up almost 18% of the total turnover.
Meghna Petroleum, a state-owned oil distribution company, was the most traded stock, followed by Padma Oil, Appollo Ispat, United Commercial Bank, Summit Purbanchol Power, Square Pharmaceuticals, Bangladesh Submarine Cable Company Ltd and Lanka Bangla Finance.
