Stocks advance on investor optimism

Stocks witnessed another positive session today as opportunist investors showed optimism on sector-specific shares. 

DSEX, the prime index of the Dhaka Stock Exchange, gained 75 points, or 1.8 percent, to close the day at 4,231. 

The Shariah-based DSES index also advanced 19 points, or 2 percent, to settle at 980, while the blue-chip index DS30 gained 23 points, or 1.7 percent, to stand at 1,414. 

At the Chittagong Stock Exchange, the benchmark index Caspi advanced 206 points, or 1.6 percent, to close at 12,878.

The market started the day's trade with a sharp gain, but immediately faced a steep fall within the first hour. However, it then picked up again and the intraday performance graph kept moving upwards till the mid-session. After that, the market faced a slight downturn, but then again gained points and continued to do so till the end of the session. 

Panic-selling in the recent past was calmed in the last two sessions after the declaration by some banks of forming special funds to support the stock market, stated the Daily Market Review of EBL Securities Ltd. 

Investors seemed to be comforted after the record-breaking plunge on Monday, as many of them opted for bargain hunting in sector-specific issues, the review added. 

United Commercial Bank, Shahjalal Islami Bank and state-owned Sonali Bank – recently informed the Bangladesh Bank that they had formed special funds as part of the central bank's move to form such funds to support the ailing capital market. 

According to the Daily Market Review of UCB Capital Management Ltd, the central bank has advised more than 12 scheduled banks to form special funds for the stock market. 

Moreover, the finance minister will sit with the scheduled banks to discuss their proposed funds and the recent capital market scenario, the review added. 

All the sectors once again posted gains today with the ceramics sector facing the highest price appreciation of 5.4 percent, and paper registering the least appreciation of 0.8 percent in the sector return board. 

Among the large-cap sectors, pharmaceuticals gained 2.1 percent price, financial institutions gained 2 percent, banks gained 1.7 percent and the telecom sector inched up 0.9 percent. 

Investors participated actively on the trading floor which resulted in turnover increasing in both bourses today.

Turnover at the DSE increased 29 percent to Tk422.5 crore today, from Tk328.3 crore in the previous session. Turnover at the port city bourse also went up 38 percent from Tk12.7 crore to Tk17.5 crore.

The pharmaceuticals sector contributed the most, 23.6 percent, to the total turnover value, followed by engineering stocks adding 14.4 percent and the textile sector adding 10.6 percent in the sector-wise turnover distribution board. 
 
Monno Ceramic Industries Ltd topped the turnover chart with a turnover value of Tk15.8 crore, closing the day at Tk124.5 per share. The stock was followed by Square Pharmaceuticals Ltd with a turnover value of Tk13.1 crore, closing at Tk181.5 per share. 

Orion Infusion Ltd was the best performer in the gainers' table, gaining 9.97 percent and closing at Tk79.4 per share, said the DSE website.

Khan Brothers PP Woven Bag Industries Ltd on the other hand, was the day's worst loser after shedding 4.4 percent, closing at Tk6.5 per share. 

Gainers were sharply ahead of the losers as out of the 354 issues traded, 270 advanced, 40 declined, and 44 remained unchanged on the DSE trading floor.