Turnover on the Dhaka Stock Exchange (DSE) hit an eight-month high on Wednesday as investors’ confidence got momentum with Tuesday’s meeting between the Finance Minister and merchant banks.
Turnover, an important indicator of the market, advanced 15 per cent to Tk 6.14 billion with 150.44 million shares and mutual fund units changing hands on the premier bourse. It was the highest turnover value since January 20, when turnover was Tk 6.69 billion.
Analysts said the market witnessed significant rise in turnover as big investors including some global fund managers were active on sector specific stocks throughout the session ahead of corporate declarations.
"Foreign investors are showing interest on Bangladesh capital market due to favourable macro-economic indicators and easing of political tension in recent months," said an analyst at a leading brokerage firm.
Maintaining the gaining streak, the market started with a positive note which sustained till end of the session as optimistic investors remained active on non-bank financial institutions, banks and engineering stocks.
At the end of the session, DSEX, the prime index of the DSE advanced 21.12 points or 0.45 per cent to finish the day at 4,660.15. It is also eight months high level of DSEX since January 20. DSEX added about 137 points in the past 11 consecutive sessions.
LankaBangla Securities, a stockbroker, said, "DSE opened higher and continued to advance throughout the afternoon, gaining strength late in the day".
The stockbroker noted that benchmark index seems to have found support above the 4,600-mark, for now.
The two other in indices also closed higher. The DS30 comprising blue chips advanced 3.11 points or 0.18 per cent to settle at 1,773.46. The DSE Shariah Index (DSES) gained 2.04 points or 0.18 per cent to close at 1,118.15.
Engineering sector remained the turnover leader, capturing 21 per cent of the day's total turnover value, followed by pharmaceuticals and fuel and power, grabbing 17 per cent and 11 per cent respectively.
"Heavy activities in engineering and pharmaceuticals sectors helped push up overall level of turnover in the market," said IDLC Investments, a merchant bank, in an analysis.
"The market has surged following fresh investment and maintained its vibrant mode amid buying spree," said Asian Tiger Capital Partners, an asset management company, in an analysis.
Sheltech Brokerage said, "The market continued the upward move from the beginning backed by bank and non-bank financial institutions".
According to the Sheltech, NBFIs led the top market cap gainers with 1.4 per cent gain led by ICB and NHFIL, while cement led the top market cap losers with 0.5 per cent loss.
Tannery Industries showed the highest turnover increase of 154.4 per cent while pharmaceuticals showed the highest turnover loss of 10.8 per cent, said the Sheltech.
The large-cap sectors showed mixed performances. The non-bank financial institution was the highest gainer, posting a gain of 1.42 per cent, followed by banks 1.22 per cent, engineering 0.53 per cent.
Fuel and power and pharmaceuticals advanced by 0.32 per cent and 0.29 per cent respectively.
Telecommunication and food and allied sectors lost 0.47 per cent and 0.15 per cent respectively.
Gainers outnumbered losers 172 to 91, with 59 issues remained unchanged on the DSE trading floor.
ACME Laboratories dominated the DSE turnover chart with shares worth over Tk 326 million changing hands, followed by Square Pharma, Singer Bangladesh, Bangladesh Submarine Cable Company and National Tubes.
National Housing Finance and Investment was the day's best performer, posting a rise of 9.84 per cent, while Shampur Sugar Mills was the worst loser, slumping by 8.60 per cent.
The port city bourse, the Chittagong Stock Exchange (CSE) also finished higher with its Selective Categories Index- CSCX - advancing 22.76 points to settle at 8,710.98 points.
Gainers beat losers as 121 issues closed higher, 89 closed lower and 43 remained unchanged on the CSE.
The port city bourse traded 9.87 million shares and mutual fund units worth over Tk 324 million in turnover.