Stocks rally on higher turnover

All indices of both the bourses flaunted gains on Thursday with increased investors' participation after the Bangladesh Bank's recent announcement of supporting the capital market. 

The prime index of the Dhaka Stock Exchange – DSEX – jumped 84 points or 1.9 percent to close the day at 4,565 points. 

DSES, the Shariah-based index, also rose by 15 points or 1.5 percent to settle at 1,046 points, while DS30, the blue-chip index, gained 21 points or 1.4 percent to stand at 1,537 points. 

At the Chittagong Stock Exchange, Caspi – the benchmark index – posted a gain of 269 points or 2 percent to close at 13,903 points.

All the indices showed a growth trend in its intraday performance graph on Thursday. The gaining momentum started during the early hours of trade and continued till the closing of the session. 

Investors went on a buying spree as momentum has been slowly building after the announcement of liquidity support fund by the Bangladesh Bank, according to the Daily Market Review of UCB Capital Management Ltd. 

Stocks eligible for receiving investments from the banks and other intermediaries as per the special fund directives became lucrative as many investors opted for profit booking, said the Daily Market Review of EBL Securities Ltd. 

The Financial Reporting Council's recent regulations on share money deposits to be converted in paid up on six months is also expected to regain investors' confidence as it will restrict financial report manipulation, the review added. 

Turnover at the DSE rose to Tk730.6 crore on Thursday, 11 percent up from Tk657.2 crore in the previous session.

On the other hand, turnover at the port city bourse recorded a massive gain of 278 percent from Tk19.4 crore to Tk73.4 crore on Thursday. 

Textile stocks contributed the highest, 15.5 percent, to the total turnover value, followed by engineering stocks adding 15.2 percent, and pharmaceutical stocks adding 14.6 percent.

All of the sectors ended in the positive territory on Thursday, except jute posting a price correction of 0.4 percent. Paper and printing registered the highest price appreciation of 7.1 percent. 

Among the large-cap sectors, financial stocks recorded 2.5 percent price appreciation, banks gained 1.4 percent, pharmaceutical stocks advanced 0.8 percent and telecom stocks gained 0.2 percent price on the sector return board.  

Khulna Power Company Ltd topped the turnover chart with a turnover value of Tk28.6 crore, closing the day at Tk55.7 per share. The stock was followed by Lafarge Holcim Bangladesh Ltd with a turnover value of Tk24 crore, closing at Tk48.5 per share. 

Far Chemical Industries Ltd, ML Dyeing Ltd and Saiham Textile Mills Ltd were the best performers on the gainers' table, advancing 10 percent each, closing at Tk8.8, Tk50.6 and Tk35.2 respectively. 

According to sources, buyers of the shares of the two companies – Far Chemical Industries Ltd and Saiham Textile Mills Ltd – outweighed the sellers on Thursday and the stocks traded at its upper price limits.

The Samata Leather Complex Ltd was the day's worst loser after shedding 5.7 percent and closing at Tk163 per share, said the DSE website.

Gainers were sharply ahead of the losers as out of 356 issues traded, 259 advanced, 65 declined, and 32 remained unchanged on the DSE trading floor.