Stocks staged strong rally yesterday with the benchmark index DSEX hits all time high, buoyed by lower bank interest rate.
Investors pumped funds on some large scrips, pushing the turnover to cross Tk1,000 crore after more than a year. The Dhaka Stock Exchange benchmark index DSEX surged nearly 68 points or 1.5% to 4,866, which is an all time high since it was launched on January, 2013.
With this DSEX’s rise that is highest single-day rally in several months, it extended gains for the third straight session in row.
The Shariah Index DSES was up 10 points or 1% to 1,147. The comprising blue chips DS30 soared 20 points or 1% to 1,899.
Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, ended at 9,080 with a rise of 146 points.
Turnover at DSE jumped to Tk1,288 crore, which is over 33% higher over the previous session and highest since July 9, 2013.
This bulk amount of activity remained concentrated in few sectors – pharmaceuticals, food and allied, engineering and, fuel and power that made up over 56.8% of the DSE’s total turnover.
“Lower bank interest rate might be one of the reasons behind the rally,” said IDLC Investments Managing Director Md Moniruzzaman.
He said investors put funds on some selected large scrips, leading to make healthy turnover.
Over the last few months, banks continued to cut interest rate due to sagging demand.
Market operators said individual investors were moving in large numbers and institutional investors ploughing back funds so as not to miss the opportunity in case the market carried on its bull run.
“The rally was purely speculative, not based on fundamentals,” said an analyst. All the sectors performed well except cement and IT.
Telecommunications showed robust performance with a rise of over 3%, followed by bank that gained 2.4% and engineering 2.3%.
The ceramic rallied quite strongly mainly due to RAK Ceramic that hit upper limit circuit breaker ahead of its corporate declarations.
Multinational companies faced certain degree of volatility as investors were active on both fence of trading.
Lanka Bangla Securities said market made another bullish move closing the index at historic high on the day of nationwide strike called by Jamat-E-Islami.
It said market pared losses on financial and manufacturing stocks those have been consolidating for long period. IDLC Investments with the expectation of reversing last several years’ faded tone, market continued moving ahead.
Hence, leaving behind country-wide strike, the bourse ended green, with investors’ stronger participation, it said.
