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Stocks inch up riding on textile sector

  • Published at 05:21 pm September 10th, 2013
Stocks inch up riding on textile sector

Stocks inched up on Tuesday as investors reshuffled their portfolio after booking profits. 

The market began with flying start in the morning but some profit booking selling pressure, mostly on financials, in the late hour restricted gains.

Rally in textile scrips has helped market end in green after three waning sessions of the day, according to stockbrokers.

After gaining nearly 50 points, the benchmark DSEX index edged 2 points or 0.06% higher to 4,074, recovering from previous session’s three-week low. The blue chip index DS30 was up 6 points or 0.4% to 1,518.

The Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, rose 7 points to 7,941.

Strong buying and selling pressure have boosted trading activities as the DSE turnover increased by 20.7% to Tk5bn. Losers beat gainers as out of 293 issues traded, 140 advanced, 122 declined and 31 remained unchanged.

“Continuous pressure from foreign diplomats on political parties to ease up political frontier knocked investors’ sentiment positively during the session. This acted as a core catalyst for opening hype of 46 points in first two hours,” said IDLC in its daily market analysis.

Frequent scrip wise swings were observed as 53 out of 293 traded scrips displayed more than 4% change in their respective prices.

Textile sector that accounted for more than 25% of total market turnover came to spotlight on the day when news of High Court’s repeal of the postpone order on RN Spinning’s dividend declaration hit the market during the trading hour.

RN Spinning dominated the trading with shares worth Tk505m changing hands.

The textile sector gained highest, more than 4%, driven by Jute Spinning that was the biggest gainer with a rise of 10%. 

Lanka Bangla Securities said market capitalisation of textile sector increased also due to a 26% export growth of RMG at the end of July, making investors optimistic about the future gain from this sector.

After RN Spinning, other top turnover leaders were Bangladesh Submarine Cable Company Ltd, Grameenphone, CVO Petrochemical Refinery Ltd, Square Textile and Tallu Spinning.