Stocks break eight-day losing streak

Dhaka,  Fri,  28 April 2017
Published : 17 Apr 2017, 21:15:59
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Stocks break eight-day losing streak

Turnover increases 5.0pc on premier bourse
FE Report


Stocks closed marginally higher Monday, breaking an eight-day losing streak, as some optimistic investors took position on sector specific lucrative stocks.

Market insiders said after fall of 185 points in eight sessions, many stocks came to a lucrative price level which encouraged investors to take fresh position anticipating short-term rally.

The market started with downward movements falling 16 points in the first 25 minutes. From that point, index moved at a steep upward direction reaching its peak at 5,618, gaining 26 points at mid-session, but could not sustain that level, finally finished 3.29 points higher.

DSEX, the prime index of Dhaka Stock Exchange (DSE), finished at 5,596, advancing 3.29 points or 0.05 per cent after losing nearly 185 points in the past eight consecutive sessions.

The two other indices also ended in positive territory. The DS30 index, comprising the blue-chips, advanced 6.32 points or 0.31 per cent to finish at 2,066. The DSE Shariah Index (DSES) gained 0.24 point or 0.02 per cent to close at Tk 12.87.

The strong selling and buying spree helped trading activities increased to Tk 7.60 billion, which was 5.0 per cent higher than the previous day's Tk 7.24 billion.

Financial institutions sector emerged as turnover leader, capturing 17 per cent of the day's total turnover value, closely followed by bank 15 per cent and fuel and power 14 per cent while textile, the largest contributor in last few sessions, fell back to fourth place.

"Stocks ended in positive note after losing nearly 185 points over the last eight consecutive sessions as investors went on buying spree amid optimism," said International Leasing Securities, a stockbroker, in an analysis.

The stockbroker noted that the session started with notable sell pressure, but the active presence of the opportunist investors in the middle of the session helped the bourse to reverse the negative trend.

"Positive momentum in some large-cap stocks, especially on the fuel and power, bank and food and allied sectors created rhythm in the investors' mood while textile, engineering and telecom sector witnessed correction," said the stockbroker.

IDLC Investments, a merchant bank, said, "The market broke eight sessions' losing streak with marginal gain with trading activities increased slightly, generating a total turnover of Tk 7.60 billion

The large-cap sectors showed mixed performance. Fuel and power posted the highest gain of 0.95 per cent, followed by banks 0.28 per cent, food and allied 0.13 per cent and pharmaceuticals 0.12 per cent.

Engineering witnessed the highest correction of 0.52 per cent followed by telecommunication 0.47 per cent and non-bank financial institutions 0.37 per cent.

The losers took a modest lead over the gainers as out of the 325 issues traded, 163 closed lower, 123 closed higher and 39 remained unchanged on the DSE trading floor.

LankaBangla Finance topped the DSE turnover with about 10.20 million shares of Tk 585 million changing hands, followed by Shahjibazar Power, Ratanpur Steel, Doreen Power and Central Pharmaceuticals.

Republic Insurance was the day's highest gainer, posting a 7.61 per cent rise while Pioneer Insurance was the worst loser, plunging by 7.43 per cent following its annual declarations.

The port city bourse, the Chittagong Stock Exchange (CSE), also finished slightly higher with its Selective Categories Index - CSCX - advancing 9.0 points to settle at 10,510.

Losers beat gainers as 120 issues closed lower, 90 closed higher and 28 remained unchanged on the CSE trading floor.

The port city bourse traded 13.76 million shares and mutual fund units worth Tk 522 million in turnover.

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